Does Insurance Cover Aftermarket Parts?
Most insurance companies offer limited coverage for aftermarket parts—but if you’ve modified your car, you might need a specialized insurance policy.
Written by Amber Reed
Reviewed by Kathleen Flear
Most insurance providers cover aftermarket parts up to a certain limit, but drivers who own a heavily-modified or custom vehicle might need specialized custom parts and equipment coverage.
When you
file a claim
with your insurance company after an accident or other incident, a claims adjuster will provide you with a repair estimate. This gives you a general idea of what you’ll have to pay to fix your vehicle. Most insurance companies offer limited coverage for certain aftermarket parts and might even include the use of them in their estimate as a way to reduce costs.However, if you’ve made extensive modifications to your car’s body or performance and want to make sure your vehicle is protected after a collision, you may need to purchase additional insurance coverage. Keep reading this useful guide to learn more about insurance coverage for aftermarket parts.
Does car insurance cover aftermarket parts?
Yes, most auto insurance companies cover aftermarket parts. But that coverage is often limited and won’t extend to all possible car modifications.
For example, if your
fuel pump broke and you replaced it
with an aftermarket alternative, which was later damaged in a car accident, your insurance will usually include it in the repair estimate.But if you’ve added modifications that drastically change the way your car runs or looks—such as a racing suspension or custom body kit—it might not be covered under your standard
collision
or comprehensive insurance
. That doesn’t mean you’re out of luck, though! Many car insurance companies offer optional custom parts and equipment insurance to pay for performance parts and other customizations that aren’t covered by regular auto insurance.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversWhat are aftermarket parts?
Aftermarket parts are parts you can use to repair or upgrade your vehicle. Because they’re manufactured by someone other than your vehicle’s original manufacturer, they are usually less expensive than original equipment manufacturer (OEM) parts.
While aftermarket parts can help reduce repair bills, they do come with one major downside: using a lot of them has the potential to lower your car’s cash value.
On the other hand, aftermarket parts that improve your vehicle’s appearance, performance, or safety can actually increase its value and get you a better price if you decide to
sell the car
. Remember though, heavily-modified cars often have higher car insurance
and repair costs.What’s the difference between aftermarket parts and OEM parts?
While the terms aftermarket parts and original equipment manufacturer parts both refer to types of replacement parts an auto body shop may use to repair your vehicle after an accident, they aren’t the same thing. Here’s how they differ:
- Aftermarket parts are parts made by a third-party company, not the car's original manufacturer.
- OEM parts are manufactured by the same company that made your vehicle.
Many car owners (and insurance agencies) prefer the use of aftermarket parts over OEM parts for car repairs since they usually cost less. Depending on your car’s make and model, they can sometimes be easier to source, too.
Does car insurance cover OEM parts?
If your car is damaged in an accident, your auto insurance policy will cover the cost of replacing OEM parts. However, they don’t guarantee that a damaged OEM part will be replaced with a new OEM part.
Because aftermarket parts are less costly than manufacturer parts, they are usually included in repair estimates. If you have a strong preference for vehicle manufacturer parts, you have the option of adding
OEM coverage
to your car insurance policy. This type of insurance guarantees that only genuine OEM car parts will be used to repair your vehicle after you file an insurance claim.How to find car insurance to cover vehicle modifications
If you’ve improved your car with a turbocharger, lift kit, custom paint job, or high-end sound system, then it might be time to look into custom parts and equipment coverage. Also known as modified car insurance, this coverage can help pay to repair your vehicle’s modifications in the event they’re damaged in a car accident.
Of course, modified car insurance usually results in a higher premium, simply because high-end aftermarket modifications have increased repair costs. But for vehicle owners who’ve invested their valuable time and money into their modified car, the extra cost is usually worth it.
Keep in mind that most insurers only offer custom parts and equipment coverage up to a certain limit. So talk with your insurance agent to make sure you understand what is and isn’t covered under your new policy.
If you want to make sure you’re getting the best coverage and insurance rates, take the time to do your research, shop around, and compare insurance quotes from several companies that offer custom parts and equipment coverage.
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FAQs
Should you tell your insurance company about aftermarket parts on your car?
You don’t need to tell your insurance company if you simply replace an OEM part with a similar aftermarket part. But if you’ve added car mods that change how your vehicle performs or looks, then you need to inform your insurance company and find out whether they’re covered under your policy.
If your modifications aren’t covered under your auto insurance and you get into an accident, you’ll be stuck paying out of pocket for some car repairs.
What modifications will car insurance not cover?
The exact types of modifications covered under standard collision and comprehensive coverage will depend on your insurance provider. But in general, sound systems and any mods that significantly change how your vehicle looks or performs are not covered by car insurance.
