Survey Finds Drivers Confused Over Coverage For Replacement Parts

Chubb Group of Insurance Companiesnt survey conducted for the <%=company%> has found that although more than three-quarters of consumers believe it is important that original manufacturers' (OEM) replacement parts be used when repairing damaged automobiles, less than one-fifth say they are covered for OEM parts under their auto insurance policies.

The survey, conducted by Research 100, an independent marketing research firm based in Princeton, NJ, asked a series of questions concerning replacement parts to 200 drivers over age 25. When asked if their auto insurance policy contained wording that stated the insurer would pay for OEM parts, only 19% responded affirmatively. This is despite the fact that 77% of survey respondents said it is "very important" or "somewhat important" that OEM replacement parts are used when repairs are made to their vehicle. Only 11% of respondents consider the use of OEM parts "not at all important."

"The survey clearly indicates consumers' preference for their insurers to provide reimbursement for OEM replacement parts," said Fran Dugan, auto manager in the Personal Lines Division and a vice president of Chubb & Son. "Unfortunately, many car owners may not have the appropriate coverage to address the generally higher costs of OEM parts and they are unaware that a select group of insurers provide coverage for them. In other cases, they are under the false impression " until they file a claim-that their policy includes coverage for OEM parts."

Other survey questions asked respondents about the quality of the different types of parts. Seventy-one percent said there is a difference between original manufacturers' replacement parts and after-market replacement parts (parts made by someone other than the original manufacturer). Most, or 84%, of those individuals think OEM replacement parts are of higher quality than after-market parts. Of those believing that OEM parts are better or no different than after-market parts, only about half (49%) are aware that some auto insurers will only pay for after-market replacement parts.

Dugan attributed the lack of awareness to the public's focus on price and policy limits when purchasing auto insurance. "Auto insurance is not a commodity product," she warned. "You can't just compare price per limits if you want to be truly satisfied with your auto insurance. You also need to consider a variety of coverage terms regarding replacement parts, claim valuation, loss of use, body shop choice and other concerns. In addition, you should consider different insurers' reputations in handling claims and servicing their policyholders."