Why might an insurer opt to use non-original equipment manufacturer (non-OEM) parts for repairs?

An insurer may choose to use non-original equipment manufacturer (non-OEM) parts for repairs primarily to help minimize the cost of repairs and insurance. Non-OEM parts are often less expensive than OEM parts, allowing insurers to reduce overall repair costs. This cost-saving approach can lead to lower premiums for policyholders and more affordable insurance options.

When insurers manage repair costs effectively, they can maintain their profitability while also providing accessible insurance rates to consumers. This is particularly important in the competitive auto insurance market, where pricing can greatly influence consumers' choice of insurer. Thus, using non-OEM parts is a strategic decision aimed at balancing quality, cost, and affordability for both the insurer and the insured.