Insurance: OEM vs. Aftermarket

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Originally Posted By: Gary Allan
I really find it odd that no one has brought this out first (I skimmed a little without seeing it).


Go through YOUR insurance company. Pay the deductible and they deal with the other insurance company. They return the deductible when they recover costs ...and they WILL recover their loss.

That is, if there's a better repair to be had ..get it done. I suspect it will end up as the same deal though.
Gary; even if you're not at fault, if you file a claim on your policy, you will get "dinged". Trust me.

In 2004 I had the misfortune of getting hit by someone who was also from Illinois while we were up in Wisconsin (2 FIB's in an accident in Wisconsin, the Cheeseheads had to just love that one...
crackmeup2.gif
). She had one of those "we'll insure anyone for almost nothing" policies that you see advertised on late-night TV. I was not at fault, never even a doubt, called my agent to discuss what to do. She strongly recommended not getting State Farm involved since I was not at fault, unless the other company didn't cooperate for some reason. Once she heard the name, she said "talk to them anyway, but we'll probably be filing a claim for you by the end of the week". Long story short, the car went in, filed under my policy, State Farm's subrogation department and I became good friends. They did get my deductible back (took 2 years, but they did it).

Fast forward to 2005, stupid me, I lost it on a turn on an icy day and bounced my Malibu off of a curb, over $1000 in suspension/drivetrain damage. Filed a claim with State Farm and lost my "accident free discount" due to a second claim within 3 years. Even though I was only at fault for 1.

Filing a claim on your policy will bite you even if you're not at fault.
 
Originally Posted By: The Critic
Originally Posted By: benjamming
Gary,

That's b/c I don't want my rates increasing for another guy's mistake.


Unfortunately, his rates will probably go up anyway now that he has had an accident.

This may very well be wrong, but according to my father, even not-at-fault accidents can cause your rate to increase as you are deemed to be "accident-prone," whatever that means.
Been there done that, too. Rather My Dad had that happen, he had the bad luck of getting hit twice in a year, neither one was his fault and the insurance company didn't dispute that, but they dropped him as a bad risk anyway.
 
i have had a few accidents where i was not at fault. each time i had a police report stating as such. i went through my insurance, AAA, only OEM parts were used, helps that i told the shops i would be calling the dealers in the area to verify the order was placed through them, and my rates went down the next year. in CA, insurance companies must use OE if the vehicle is within a few years of new and they must allow the vehicle owner to go to any repair shop of their choosing.
 
I worked for Geico as a claims adjuster, and if you are filing a claim on your own policy, you will NOT get OE unless there is no aftermarket or used parts available - it's in your policy for your collision coverage. They go cheapest first PERIOD!

Now if you are a claimant on someone else's insurance, there is a little more leeway to keep something like this from escalating - it costs less to just settle it there than risk it escalating.

It varies state to state, but technically they could put a used 7 year old bumper cover on there since that is what was damaged. It is LKQ - Like Kind and Quality.

Most companies will give you a lifetime warranty (as long as you own the vehicle) on aftermarket parts - I'd ask about that.
 
Insurance varies state to state, if you got rear-ended then the other driver was at fault. You should contact your insurance to find out if you had a no-fault accident does it effect your premium if you file a claim with your insurance.

In California, there is no negative on my insurance record for filling no-fault claims against my insurance.
 
My beautiful Javelin was rear ended in 1975. I had a dispute with the other driver's insurance rep, who was not going to replace some items that were recommended by the body shop. He wanted to merely straighten them. I wrote to the state insurance commission, and he changed his tune very quickly.

In the mid 80's, this tactic did not work for a replacement windshield. Went to the shop required, and two years later the windshield looked pitted, like it was 12 years old. It leaked after 3 years, a problem that was never fixed.

See my response to the synthetic oil change posted by Calvinnn that you replied to and I replied back.
 
5. What protection do I have against unreasonable surcharges or policy terminations?
Motorists in Pennsylvania may not be surcharged or have their policy non-renewed if the claim(s) resulting from the accident(s) in the preceding three years do not add up to more than the current threshold amount after payment of any deductible, or if the insurance company is reimbursed for at least 60 percent of the total amount of the paid claim.
 
Originally Posted By: Gary Allan
I really find it odd that no one has brought this out first (I skimmed a little without seeing it).


Go through YOUR insurance company. Pay the deductible and they deal with the other insurance company. They return the deductible when they recover costs ...and they WILL recover their loss.


Originally Posted By: Bill in Utah


I would NOT pay for it out of my pocket. The other way is to go ahead and have your insurance company pay for it and then let them go after the other insurance company. You WILL pay for your deductible and once the other insurance has payed, you will get it back.
Take care, bill
 
Originally Posted By: benjamming
rudolph,

Bill,

I do understand the insurance companies trying to ensure that prices are kept in check. I expect that & they should do that. I don't treat this any different than I do when I am paying outright. That is whole reason I got 3 quotes up front.
Who were you talking with during all this - claims associate?
I don't take offense at your comment. However, I'm not concerned what value they place on the car. It is in really good shape. I have worked hard to keep it that way. It's not treated like a daily driver.


Agree but you have to understand that if something happened to it like being totaled, you will get the bottom $$ for ANY insurance company. SAD but TRUE. They could care less if you ran $50 a quart oil or 50 cent a quart, how it runs. All they will do is look at the car, mileage and here is your number.

Again, SAD but TRUE. (and trust me, NOT happy about that myself)


Back to the question, yes the person you deal with is the insurance adjuster/claims person. Just tell them that you did not ask to be hit by their client and you'd be real HAPPY if they fix your car the way it was before the incident. They do that and you go away.

If not, you'll know who to make your hobby next year. And you can be REAL picky. And need rent-a-cars each and every the body shop is repairing your car and fixing it CORRECTLY.

Be nice, but firm.

Now another thing here. Our (at the time 9 month old Subaru) got hit by a semi. ALL the parts were SUBARU.. About $8,000 dollars worth. I watched the dealership bring the parts and saw the stack of boxes with Subaru stickers on it. So some insurance companies DO use OEM if you ask (which I did).

I'm sure with it being only 9 months old did matter. But I know aftermarket was avail but my insurance company wanted OEM parts once I asked them before the work started.

Take care, Bill
 
Originally Posted By: mechtech2
Also demand the [approximate] 10% premium for having your car damaged, and thus affecting the resale value.
This is a hidden benefit that the insurance companies keep hidden.
I hope it applies in your state. Start digging.


Nice try.
grin2.gif
None will do it but IF the repair was done correctly there is not if any of a ding on the resale.

Our 2007 Outback took a $12k hit when 9 months old. We were looking at trading it in for a 2010 Forestor and they looked at the repairs and said no hit on trade in. The number they said was the same as everything else I looked at.. (KBB, Edmunds, NADA and Subaru trade in program)

If the shop is good, you can NOT tell where it was hit and what parts were replaced. The paint is PERFECT from ANY direction and ANY light. (and I'm picky!)

I'm impressed. (and its hard for me to be that way when dealing about my vehicles)

Take care, Bill
 
Gary,

I didn't mean to be a smart aleck with my reply. I found it fascinating that you weren't aware of this.

Also, did that rule you quoted say what the threshold amount is (for PA)?

VeeDub,

This is State Farm I'm dealing with & wouldn't have posted this if there weren't problems with getting them to use OEM & not low-ball the estimate.

I'm going to submit the 3 estimates from local shops (one of which is one they recommended but were the highest).
 
I would never tolerate some tort feasers two bit insurance adjuster telling me how I could or could not repair my property or what parts, or company I "had" to use.

I would just make a claim on my policy, fix the car how I darn well wanted it done, get a before and after appraisal of the car to reflect the dimunition in value from having been repaired, and let my insurance get their money and my deductible back from the other company.

If it was less than my deductible ($1000), I would repair my car out of my pocket, get the appraisal, take a look at our statute that makes it a crime not to pay small automotive damage claims, notice out the insured (or uninsured) tort feasor in the manner required by the statute with a copy to the adjustor, if the draft doesn't arrive on time, then I would notify the prosecuting attorney and let him send a pay up or face prosecution letter to the tort feasor, and while I was at the courthouse I would arrange for a civil summons to be served on the tort feasor.

Insurance adjustors jerk people around because most people don't bother to see a lawyer and learn their rights which vary greatly from state to state.
 
Benjamming, sorry to hear about that. I am surprised they are jerking you around. You may have to do what WIN is suggestion.

BTW, WIN, what do you think of those prepaid legal services where you pay a small monthly fee and can access a lawyer anytime for dealing with small issues like traffic tickets and insurance claims like this? Is this something that you'd recommend. I have relatives who have them and they seem pleased. But they also aren't lawyers with inside knowledge.
 
Win,

Any suggestions for appraisal folks/types to consider & what is involved? As has been said above this isn't a rare/collector's vehicle.
 
Just a suggestion.......
Try the PITA technique (Pain in the a@#)
Contact the adjustors supervisor. Tell them you want an OEM bumper cover or you will work your way up the State Farm Chain of Command (and contact the Alabama Insurance Commissioner, as well as the consumer reporters at your local TV stations)
I would doubt that the difference in cost is worth the drama for State Farm. However, this adjustment would probably have to be made by a supervisor.
If they don't, involve the Insurance commissioner and the TV outlets.
If this doesn't work, go to small claims court, request a used OEM part, or pay the difference out of pocket for the part if it is not worth all the hassle to you.
I'm in full agreement on the OEM replacement, especially on sheetmetal parts. Fortunately, the only situation that I ever had involved my insurance company requesting (not requiring) used parts on our Odyssey. I was fine with that, considering my father-in-law owns his own shop, does great work, and is not about to half-a@# a vehicle his daughter drives. Saw the parts, he even found the same color (not that it makes any difference, they were repainted, anyway.)
 
Quote:
Gary,

I didn't mean to be a smart aleck with my reply. I found it fascinating that you weren't aware of this.


Oh ..no offense taken ..at all. I'm often sucker punched by evolutions that occur without having dealt with them for a decade or more. For example in my past "Dark Ages" ..I didn't even know that the ABA failed and merged with the NBA and I was someone who, while not anything you could call great at it, played and loved basketball.
grin2.gif


Quote:
Also, did that rule you quoted say what the threshold amount is (for PA)?


I don't believe it did. It's a recurring reference, so I would assume some either stipulated amount by the individual insurance company at policy onset/renewal, or a determined amount by the insurance lobby and the state. It may be a formula dictated by the state that will vary. It's a complicated process getting what you're looking for when the alumni association gets frustrated literary majors political patronage jobs and lets them create documents.
 
Originally Posted By: VeeDubb


what do you think of those prepaid legal services where you pay a small monthly fee and can access a lawyer anytime for dealing with small issues like traffic tickets and insurance claims like this?



I don't know, if the small monthly fee encourages them to see a lawyer more often then it is probably an OK deal. I frequently see issues that cost thousands of dollars to fix, but could have been totally avoided or greatly minimized with a pre emptive office visit.

I think most people would be about as well off saving their money, and just making an appointment and buying a one half hour or one hour consultation on an as needed basis, provided they actually see a lawyer, and don't just blow it off and hope for the best.
 
Originally Posted By: benjamming
Win,

Any suggestions for appraisal folks/types to consider & what is involved? As has been said above this isn't a rare/collector's vehicle.


The dealer who sold you the car should have a used car manager who can write you an appraisal of the fair market value of the car immediately before the occurence, and the fair market value of the car after having been repaired as a result of the occurence. The delta between the two is your dimunition in value damages.

This is one of the reasons why a good relationship with a car dealer can benefit you after the sale. If you had an adversarial relationship with the people who sold you the car, they may not be very interested in helping you now.

No one wants a wrecked car and no one will knowingly pay as much for a wrecked car as they would for an unwrecked car. As the car ages, the delta will become less, but it still exists. CarFax makes a good living off the fear of people unknowingly buying a wrecked car.

I would suggest buying a half hour consult with a lawyer licensed to practice in your state who should be able to asnwer all your questions.
 
Originally Posted By: Bill in Utah


Agree but you have to understand that if something happened to it like being totaled, you will get the bottom $$ for ANY insurance company. SAD but TRUE. They could care less if you ran $50 a quart oil or 50 cent a quart, how it runs. All they will do is look at the car, mileage and here is your number.

Again, SAD but TRUE. (and trust me, NOT happy about that myself)


The better insurance companies offer a product that provides for new car replacement of a totalled vehicle.

I have new car replacement on the three new Ponchos, and the annual premium is $26 for the G8; $27.00 for the Torrent GXP; and $21.00 for the Solstice. How they will be able to buy me a new Pontiac in the future will be an interesting detail should I ever have to make a claim on the rider.

Insurance is very much a product that you get what you pay for. Cheap premium = little interest in paying claims, and when they do, it's as cheap as they can get it.
 
Originally Posted By: Win
Originally Posted By: Bill in Utah


Agree but you have to understand that if something happened to it like being totaled, you will get the bottom $$ for ANY insurance company. SAD but TRUE. They could care less if you ran $50 a quart oil or 50 cent a quart, how it runs. All they will do is look at the car, mileage and here is your number.

Again, SAD but TRUE. (and trust me, NOT happy about that myself)


The better insurance companies offer a product that provides for new car replacement of a totalled vehicle.

I have new car replacement on the three new Ponchos, and the annual premium is $26 for the G8; $27.00 for the Torrent GXP; and $21.00 for the Solstice. How they will be able to buy me a new Pontiac in the future will be an interesting detail should I ever have to make a claim on the rider.

Insurance is very much a product that you get what you pay for. Cheap premium = little interest in paying claims, and when they do, it's as cheap as they can get it.


All insurance companies have that covereage and its called GAP coverage.

Bill
 
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