Could you owe for the OEM parts? The answer is maybe....
This question pops up from time to time so lets dive into the potential outcomes. If you find yourself in a similar scenario, we’ve included some background and options for you to consider.
Could you owe for this? Yes, you can be held responsible for the difference in cost between OEM and non-OEM parts if you're the at-fault party and the other party is pursuing a third-party claim through your liability insurance. However, whether that actually happens depends on several factors:
Key Considerations:
1. State Law
Some states require insurers to pay for OEM parts if the vehicle is relatively new or still under warranty.
In other states, insurers are only required to return the vehicle to “pre-loss condition,” which can include using high-quality aftermarket or recycled parts.
Example: In North Carolina, an insurer may use non-OEM parts, but they must be of like kind and quality and noted in the estimate.
2. Vehicle Age and Condition
If the vehicle is newer or high-end (like a Tesla), there’s a stronger argument that only OEM parts will return it to its pre-loss condition.
For older vehicles, courts and adjusters often accept non-OEM parts unless they’re proven inferior or incompatible.
3. Demand by the Claimant
If the other party demands OEM parts and your insurer refuses, the claimant can reject the settlement and:
File in small claims court for the difference.
Submit a demand letter requesting full reimbursement, possibly with legal representation.
If the claimant wins, your insurer might pay—but in some cases, they may not, and you could be personally liable for the difference.
4. Your Policy Terms
Most liability policies don’t guarantee OEM parts for third-party claims—they’re focused on reasonable repairs.
If a court or arbitration deems non-OEM parts inadequate, you or your insurer could be liable for the upgrade cost.
What You Can Do
Communicate with your insurer: Ask if they’ll consider OEM parts in this case—especially if the vehicle is new or OEM is required to maintain warranty/safety systems.
Ask the shop or claimant for documentation that explains why OEM parts are required.
For example, Tesla recommends or requires OEM (Original Equipment Manufacturer) parts to be used for repairs after an accident and repairs should be performed by Tesla-Approved Collision Centers using genuine Tesla parts.
Using non-OEM parts may void portions of your warranty or affect vehicle performance, especially with components tied to safety systems like ADAS (Autopilot sensors), structural components, or battery systems.
Consider out-of-pocket payment for the difference if you want to avoid a dispute or claim escalation.
Bottom Line:
You’re not automatically on the hook—but yes, if your insurer won’t pay and the other party prevails in seeking OEM repairs, you could be responsible for the cost difference. It’s a gray area where vehicle type, state laws, and repair documentation all matter.
If you find yourself in a situation where OEM parts are in question after an accident, your first step should be to speak with your insurance carrier to understand their position and policy. If they are unwilling to assist further, consulting with a claims professional—like the team at Extennsion—can help you navigate your options, protect your interests, and ensure an amicable outcome.