Can an insurance company put used or aftermarket parts on your car?

When your vehicle is damaged in an accident, you expect an insurance company to restore it to its pre-accident condition. This might be your insurance company of the insurance company for another driver who caused the damage. However, in Louisiana, insurers are permitted to use aftermarket or used parts (known as “like kind and quality” parts) instead of original equipment manufacturer (OEM) parts when repairing your vehicle, as long as they are equal in terms of fit, quality, performance, and warranty.

This practice, while cost-effective for insurance companies, has raised concerns among vehicle owners regarding the quality and safety of non-OEM parts, as well as the potential impact on a vehicle’s value after repairs. However, before an insurance company can put used or aftermarket parts on your car, it has to notify you in writing.

The Law on Aftermarket Parts in Louisiana

The law controlling the use of aftermarket parts begins at Louisiana Revised Statute 55:2421. This is what you need to know:

“Aftermarket crash part” means a replacement for any nonmechanical parts such as inner and outer panels.

“Nonoriginal equipment manufacturer (non-OEM) aftermarket crash part” means aftermarket crash parts not made for or by the manufacturer of the motor vehicle.

When non-OEM aftermarket crash parts are used in a vehicle repair, the written estimate has to identify each part and the following disclosure has to be provided to you:

“This estimate has been prepared based on the use of crash parts supplied by a source other than the manufacturer of your motor vehicle.  Warranties applicable to these replacement parts are provided by the manufacturer or distributor of these parts rather than the manufacturer of your vehicle.”

While Louisiana law allows insurance companies to use aftermarket parts, it does not mean vehicle owners do not have rights.

Vehicle Owner Options

If not satisfied with aftermarket/used parts for repairs, owners have options:

1. Request OEM Parts: You have the right to request the body shop to use OEM parts and to refuse to allow the body shop to install aftermarket parts on your vehicle. However, you will likely have to pay out-of-pocket for the difference in price between the OEM part and the aftermarket part.
2. Negotiate a Settlement: The insurance company may be willing to consider paying the additional price for some OEM parts. This is something you will need to negotiate directly with the insurance company. Because the law allows the insurance company to use aftermarket parts, neither your attorney nor the body shop will typically be involved in these negotiations.
3. File a Claim: if the insurance company has not given you the proper notice about the use of aftermarket parts, you can file a claim under Louisiana’s Unfair Trade Practices Act or file a claim with the Louisiana Department of Insurance.

You may also have a claim against the insurance company for the decrease in the resell value of your vehicle based on the crash or the aftermarket parts. This known as a “diminished value claim.”

Diminished Value Claims

Louisiana law allows diminished value claims if a vehicle loses value due to an accident/repairs. To bring a claim against another driver’s insurance, you will need to show that if the vehicle were repaired to its pre-loss condition, its fair market value would be less than its value before it was damaged. If you are bringing a claim against your own insurance company, you will need to show that your insurance company has put you back into the same position you would have been in if your vehicle had not been damaged.  You will typically need to provide an appraisal or other documentation to support the decrease in value.

Speak With an Attorney

If your car has been damaged in an accident, an injury lawyer may be able to help you understand what rights you have. While injury lawyers usually do not make money on the property damage side of your case, because they deal with vehicle accident claims on a regular basis, they have often have experience in advising clients on how to best handle their property damage claims. At Big River Trial Attorneys we offer a free consultation in all auto accident injury cases. You can reach us by phone at (225) 963-9638 or click here to contact us about scheduling a time to talk.