Study reveals some car insurance companies don’t use genuine parts in crash repairs – Drive

May 10, 2022 by No Comments

Buried in the fine print of some car insurance policies is a disclaimer that permits the use of generic, non-genuine parts in crash repairs.

Some of Australia’s biggest insurance companies have discreetly introduced policies to use generic, non-genuine parts in crash repairs.

Permission to use non-genuine parts – which saves some insurance companies millions of dollars each year, but can leave car owners with ill-fitting repairs – is included in the fine print in the policies written by major insurers such as AAMI and GIO and others.

Insurance giants NRMA and RACV are the only major policy providers unearthed by Drive that specifically outline the use of genuine parts in crash repairs.

All major insurers had a provision to use “high quality, non-genuine” parts for windscreen and radiator replacements.

And they all had a provision to use genuine secondhand parts provided they were in good condition which, smash repairers say, is a better option than generic, non-genuine “aftermarket” new parts. 

The fine print in product disclosure statements that enables the use of generic, non-genuine parts in crash repairs is easy to skim past.

For example, the product disclosure statements for AAMI and GIO say: “When we authorise repairs to your car we will ensure the repair work is properly carried out, use new parts or, where available, quality reusable parts.

“The parts used will not void the warranty provided by the car manufacturer, comply with the car manufacturer’s specifications and applicable Australian Design Rules, be consistent with the age and condition of the car, and preserve or improve the safety and structural integrity of the car.”

Of note, the AAMI and GIO policies refer to “new” parts but do not specifically mention they must be genuine parts.

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