Why do insurance companies do this?

Question

A person backed into my truck causing damage to it and now after getting an estimate, the insurance company expects me to accept aftermarket parts from the body shop just so they don't have to pay for the prices of OEM parts. Why do they think they can do this. I had OEM parts to begin with and that's what I want. What can I do if they won't give me enough money to buy OEM parts because they only want to give me new aftermarket or used OEM parts and not new replacement OEM like what I'd like? They won't give me what the estimate was because it included new OEM parts. Insurance companies suck. Should I blow up at them and tell them they are luckey I don't claim injuries? Thanks for the help in advance.

Thanks for the answers, I have messed with aftermarket parts before and have had some problems. I don't want to end up with a part that has less material to it. For example, I'm wondering if an aftermarket fender uses a thinner gauge metal compared to OEM. I've enocountered this and I just don't want to have to deal with it. I don't want a fender that is flimsy. Now of course I can look at the parts before they are put on and reject them if I don't like the quality. I just don't want to spend the time doing this or have to mess with calling the insurance company back and complaining if the parts are crap. I'm afraid they'd be like, sorry the claim is closed and we can't help you. Than I'd be going to the aftermarket parts place with complaints. You see this is a lot to mess with. I have already spent hrs. detailing the event and getting a estimates. This takes a lot of time and I think they should compensate. Also, cowboybil, malibu fenders should have less metal as they're smaller.LOL

Answer 1

tell them you want, new, oem parts. they are way better than aftermarket. why should you have to settle? ask them if the aftermarket parts are so good then why isnt the vehicle made with them? stand your ground

Answer 2

If you had to purchase the parts would you pay the extra 200 dollars for an OEM fender. I really doubt it. Almost every insurance company backs the aftermarket parts. The reason that they gets such a bad rap is due to body shops that complain because they aren't making as much money on them as they do on OEM.

Have you had the glass replaced in your vehicle. It is aftermarket

If you are a mechanic you either work for a dealership or can get parts at a discounted price. You just want to be paid the OEM price so you can go out and buy the discounted OEM or aftermarket parts and pocket the difference.

Everyone can see thru what you are trying to do!

Answer 3

By law, they have to provide you with LKQ parts, which means parts of the same "like, kind and quality." If you have a 5 year old bumper that nears to be fixed, technically the insurance company old has to pay for a five year old bumper. That is why after-market parts are used, because they are new quality but at a discount, so you actually get a better deal on an older car.

If you look at your estimate, you will see where they get the after-market parts from. A lot of the places are the exact same place that provide the dealer parts, but just without the brand name attached. This is the same thing that happens the moment you change anything from your spark-plugs to your tires or brakes or transmission.

If you have a real issue with it, have the dealership fix it...this way you know it will be at their specifications with the after-market.parts.

Blowing up at them will do nothing, because people yell about this all the time and the law is on the side of the insurance companies. Claiming injuries will only delay your claim and insurance companies have a national database of injuries claimed - you don't want to get a hit on there for a fraudulent injury because it will hurt you in the future if you ever suffer real ones.

Answer 4

Do you go to the dealer to buy tires? They are aftermarket. So are batteries, antifreeze, drive belts, spark plugs, oil, etc, etc. Go ahead and claim injuries....they need a good laugh. You have a misconception about 'aftermarket' parts. Your truck was likely built in Canada, wiring harness made in Mexico, tires made in Asia, etc. Using 'quality' aftermarket parts only makes sense. Ever wonder why GM can get away with selling a truck fender for over $400.00 when it has no more metal than a Malibu fender which sells for half the price? Why does an OEM plastic headlamp cost $575.00? Why does GM sell a battery for $116.00 when Sears sells a direct replacement for $68.50? The automakers have run amok with their replacement parts costs. The only thing that can possibly lower these outrageous costs is competetion. Insurance companies do want to save money...it's a business after all. If you can show any insurance company that an aftermarket part is INFERIOR to the original part it replaces, they will replace that part -- most likely with an OEM unit. This is simple to do and you will get far more traction with the claims dept using a calm, educated approach vs a combative one (like claiming false injuries). As a last resort, you can always have your own company handle the claim. They will subrogate the other company for payment in full and refund your ded.

Answer 5

OEM vs. aftermarket....generic vs. brand name. Going OEM is like buying acetaminophen instead of Tylenol brand or ANY part from Napa, Adv Auto Parts, Checker, etc. Given your user name, I assume you're a mechanic and you're certainly familiar with AC Delco.....it's aftermarket. Have a drop bumper on your truck?....it's aftermarket. Just like Cowboy Bill said earlier, a lot of your vehicle may already be aftermarket. What parts you get as a third party claimant has nothing to do with what the auto policy says for the person who hit you. You're a third party to the loss and the insurance company has zero contractual obligation to you. Check your state law on aftermarket usage for third party claims. You may have no choice whatsoever...that would be my guess in most, if not all states.
Insurance rates go up for various reasons. An earlier answer doubted aftermarket usage saved anyone on their premiums since their rates go up anyway. Ever thought they would have gone up more if only OEM was used. Do the math. An auto adjustor may look at 3-5 cars/day on average. Lets take 3/day at an average estimate around $2300 - $2500 +/-. Aftermarket usage may save $150/car (easily done) = $450/day in savings x 240 working days = $108,000/yr per adjustor. Take that times the number of adjustors working for a company and you can see how it DOES make a difference....companies with 2000 auto adjustors (many have a lot more than that) would save over $200,000,000!!!!!!! That's more money than some insurance companies take in in a single year. It saves money and IT IS passed onto the consumer whether you believe it or not.

I would bet that the insurance company guarantees the quality and fit of all the aftermarket and used parts for the life of your ownership. See how they work and address it then. If you refuse to put them on it's likely going to be on your dime unless you state's laws say differently.

Answer 6

praise the lord for cowboy bill- those are my words exactly. Of course you all would assume the insurance companies "dont care" by giving you aftermarket parts. What about the car manufacturers that take advantage of you by asking for twice as much for their parts because they know its your only choice if you want OEM?

Aftermarket parts generally have a LIFETIME guarantee- unlike oem parts that have a 1-2 year guarantee. Furthermore- they are not going to give you an aftermarket part that doesnt fit the vehicle. Insurance companies jobs are to take your vehicle to pre-loss condition and they will not give you a crappy part that makes your vehicle worse.

Seriously- do you really think a piece of metal is better b/c it has ford engraved on the inside? ITS A FREAKING PIECE OF METAL!

And seriously- go ahead tell them your injured- everyone needs a good story to tell around the office

Answer 7

"Should I blow up at them and tell them they are luckey I don't claim injuries?"

No, that could be construed as a form of extortion.

I assume you're dealing with the other drivers insurance company. You do have legal rights. The other driver is ultimately liable to restore you to the position you were in prior to the accident. If his/her insurance company fails to do that you could possibly still sue the driver for additional compensation.

Answer 8

Their claim is that it saves the insurance companies money which in return saves the consumer money also. Like passing the savings on to the consumer. Yeah right. It happened to me also and they saved money and still raised my rates. You can call your insurance commissioner for your state and he or she should be able to help. Keep in mind that not all aftermarket parts fit as they should. Look closely at the lines in your body. Make sure every crack and gap is even and that all doors, hood and trunk closes right and lines up. Good luck

Answer 9

Because they are in business to make as much money as they can - not to fix cars. They will only give you as much as they are legally liable to give you under your policy's terms (which they carefully wrote to benefit them as much as possible and still get you to pay your premium) and no more. They want you to pay premiums and not file claims. That's why "good drivers" pay the lowest premiums - they don't collect.

Answer 10

because they are cheep and don't care