How Aftermarket Parts Affect Your Car Insurance

Posted: Friday, May 27th, 2016

Here at Green Light Auto Credit, we make financing your new or used vehicle purchase easy and stress free. What we can’t do is make your insurance simpler. We can, however, help you understand all the costs of owning a vehicle, and that means we’re happy to help you get a handle on what might or might not affect your insurance premiums. One thing you might be surprised to learn is that aftermarket parts might change your car insurance premium. Learn more here.

A Red Flag For Insurance Companies:

Insurance companies see the use of aftermarket parts as a red flag. Aftermarket parts, which are not the same as OEM or original equipment manufacturer parts, can be less expensive, but they might have an impact on your car insurance. While these non-original parts might be perfectly high quality, to an insurance company, they don’t necessarily line up with the quality of the vehicle insured. Some insurance policies actually state that aftermarket parts are not even covered!

How to Avoid Being Penalized for Aftermarket Parts:

In fact, if you want to use aftermarket parts – including performance oriented upgrades – you might even want to consider adding special coverage to your car. These special plans are called Custom Parts and Equipment coverage, and will likely cost extra over your basic coverage. Depending on the kind of aftermarket parts your car has installed it could be worth the expense.

On the other hand, if you use OEM parts, which are the parts that would have been used to make your vehicle in the first place, you won’t have to worry about other kinds of coverage. While OEM parts might cost a bit more than aftermarket parts, they do simplify the process, and guarantee that you vehicle is up to factory specification – and that makes insurance companies happy.

Find the Financing You Need at Green Light Auto Credit

If you have any further questions about what aftermarket parts might mean for your car insurance premium, or when it’s time to finance your next vehicle purchase, make sure you contact Green Light Auto Credit online now. You can also give our team a call at (800) 200-5551 with any questions about your next auto loan.