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Why use competitive auto parts?
Think new car prices are high? Just try building one entirely from original equipment
manufacturer (OEM) replacement parts. Not including paint and labor, the cost—on
average—soars to a staggering three times higher than a new car.
That means the new car you bought for $20,000, could easily cost more than $60,000 to
build from OEM parts.
The good news: there is an alternative. In many cases, competitive—or
generic—auto parts are available to repair or replace the car’s original
components. The term "competitive auto part" comes from the fact that these
parts compete with those manufactured by carmakers by offering a lower- priced alternative
product that is of the same kind and quality.
You’ve probably used competitive auto parts in your car and not even realized it.
Maintenance parts like spark plugs, batteries, oil filters, brakes, shock absorbers,
mufflers, air conditioning condensers, radiator cores and windshields are some examples.
Many of the competitive parts have become well-known industry standards, such as the Midas
muffler, the Monroe shock absorber and the DieHard battery. And these less expensive parts
frequently carry better guarantees than the original carmakers’ parts they
replace—many "for as long as you own your car."
When repairing crash damage to a car, competitive auto parts—such as fenders,
hoods, trunk lids, and other sheet-metal and plastic parts for the car’s exterior
body—are often used.
Minimum standards for over 600 competitive crash parts have been established by the
Certified Automotive Parts Association (CAPA). Testing of the parts is conducted for CAPA
by Entela, Inc. Once parts pass Entela’s rigorous inspection, CAPA certifies the
parts to assure quality. CAPA was established by insurers, along with representatives of
the collision repair industry, parts manufacturers and consumers, to provide auto owners
with an assurance that competitive auto parts are comparable in quality to the original
parts they replace. In addition to CAPA certification, reputable suppliers of competitive
auto parts offer warranties on their parts, again often exceeding those offered by the
carmakers.
So, what does all this have to do with your car insurance? Plenty.
Insurance companies spend nearly $6 billion a year to pay for parts and services to
repair automobile crash damage for their customers. The competition that currently exists
in the auto parts market is reducing prices by 25 to 40 percent and more, depending upon
the type of repair involved. These savings help keep premiums lower for all
insureds—even those who don’t use competitive auto parts.
When you suffer a loss, your insurance company will recommend which parts to use based
on the quality, availability and cost of the parts. Most importantly, they want a quality
repair job for their customers.
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