IMPORTANT: ARE YOU IN VIOLATION OF YOUR LEASE AGREEMENT IF IT STATES THAT YOUR REPAIRS MUST INCLUDE NEW OR USED OEM (ORIGINAL EQUIPMENT MANUFACTURER) PARTS?
CLICK HERE: FOR A REFERENCE OF LEASE POLICY AGREEMENTS BY MANUFACTURER
Lawyers and Judges expect you to know your insurance policy.
Waiting until you've had an accident is a very bad time to find out that you you allowed for the use of aftermarket parts on a vehicle that contractually specifies that you must use original equipment parts in your repairs.
Look at the “Limits of Liability” section of your auto insurance policy for the following:
1. “Like, Kind and Quality”
• also referred to as: Used, Salvage or Junkyard Parts These parts have typically been harvest from a vehicle that has been declared a total loss.
• Refurbished,Remanufactured or Rebuilt are parts that have been previously damaged or failed to function and have been repaired by a third party. (Automakers almost always reject the use of a remanufactured aluminum alloy wheel since there are serious safety concerns with these parts).
• These are previously damaged salvage parts that have
been prepared to function
- Perhaps these types of parts are fine to use in your repair. However, just confirm it’s your choice and understand the difference
2. “Parts from other sources including non-original equipment manufacturers”. (Non-Original Equipment parts are typically made in Asia.)
• also referred to as: Aftermarket, New Quality Replacement
or Imitation Parts
• Aftermarket Parts may or may not be held to the same
• For newer cars, these parts may diminish the value of your
- Again, perhaps these types of parts are fine to use. Just confirm it’s your choice and understand the difference
Most of us believe that new genuine original equipment replacement parts are used in the repair of our vehicles.
Furthermore, we have no idea that the limits of our insurance policy allow for the use of imitation or salvage parts (which arestill considered genuine OEM – original equipment parts)
Many insurance companies will typically specify the use of these salvage (genuine/OEM) or imitation (non-OEM) parts to repair your vehicle as a cost-saving measure without your knowledge, understanding, acceptance and written consent inthese states: (AK, HI, IN, OH, RI, TN, WV, WY).
(This becomes particularly unfair if an accident is not your fault and you have no control over which parts are being specified)
Unfortunately, only a handful of insurance companies even offer an endorsement to only allow new OEM (Original Equipment Manufacturer) parts to be used. Eventually, when the endorsement is available with every insurer, this challenge can be properly addressed.