When your car gets damaged, the first question is often: should I use new parts or used parts for repairs? What many drivers don't realize is that insurers have clear preferences—and those choices can affect your coverage, repair quality, and even future claims. Here's a breakdown of how insurers think about replacement parts, why it matters, and what you should know before the shop starts work.

Step 1: Know the Types of Parts

Insurers distinguish between several types of parts, each with pros and cons:

• New OEM (Original Equipment Manufacturer): Factory-made parts that match your car exactly.
• Aftermarket parts: Brand-new parts not made by the car manufacturer, but often cheaper and widely available.
• Used (salvage) parts: Parts removed from other vehicles, usually discounted but with variable quality.
• Rebuilt or remanufactured parts: Used parts that are repaired or restored to function like new.

Pro tip: Always ask your repair shop to explain what type of part they plan to use. The label "OEM" doesn't always mean brand-new—sometimes it's rebuilt.

Step 2: How Insurers Decide Which Parts to Approve

Insurance companies focus on cost, safety, and liability:

• Cost control: Used or aftermarket parts often cost less, helping keep claims affordable.
• Safety and liability: Insurers weigh the risk of a part failing and causing further damage or injuries.
• Coverage terms: Some policies specify what types of parts are covered for repairs.
• Vehicle value: For older or low-value cars, insurers often recommend used parts to avoid paying more than the car's worth.

Even if you prefer new parts, your insurer may push for a more cost-effective option.

Step 3: Pros and Cons from the Insurer's Perspective

Each part type has trade-offs:

Part Type	Insurer Perspective	Pros	Cons
New OEM	Highest cost	Perfect fit, maintains value	Expensive, may delay repair
Aftermarket	Mid-range	Cheaper, readily available	Fit or finish may vary
Used	Lowest cost	Cost-effective, eco-friendly	Quality and longevity uncertain
Rebuilt	Moderate	Restored function, lower cost than new	Not as reliable as brand-new

Pro tip: Even if insurers prefer used parts, some will allow a new part if you're willing to pay the difference.

Step 4: How This Affects You as a Driver

Your choice—or your insurer's preference—can impact:

• Repair timeline: New parts may take longer to source.
• Warranty coverage: Some insurers offer limited warranties on parts; new parts may extend coverage.
• Resale value: Cars repaired with OEM parts often retain value better than those with used parts.
• Future claims: Using lower-quality parts may lead to additional damage and further claims.

Step 5: How to Navigate Repairs Wisely

You don't have to leave decisions entirely up to your insurer:

• Ask your insurer upfront: Clarify what your policy covers and if you can choose different parts.
• Compare quotes: Sometimes shops offer options for OEM, aftermarket, or used parts.
• Document everything: Keep photos and invoices of parts for future reference.
• Consider the car's age and value: For older vehicles, cost savings may outweigh long-term resale concerns.

The Bottom Line

Insurers generally prefer used or aftermarket parts for cost efficiency, but safety, quality, and vehicle value also factor into their decisions. Being informed lets you make smart choices about repairs without surprises—and ensures your car is restored safely and properly.

👉 Take a moment before your next repair to ask what parts your insurer and shop recommend. Knowing your options can save money and prevent headaches later.

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