Reforming Texas’ Auto Accident Repair Laws
Can a car insurance company force you to use aftermarket parts after an accident?
In Texas, yes.
Imagine buying a new car. It’s your first in 15 years. You drive it for five months. It has 4,000 miles and still has “new car smell.”
Then someone without insurance rear-ends you at a stoplight, and you’re forced to file a claim with your insurance company. As demoralizing as this is, you can at least take some comfort in the fact that you’re fully covered, and body shops these days are very good. You also haven’t filed an auto insurance claim in 25 years. So, you should be good. Right?
Then you learn from the body shop that your insurance company is insisting they use aftermarket parts instead of those made by the manufacturer. You immediately start asking yourself questions. Is this normal? Will aftermarket parts work as well? Will this void my warranty? Will I have to disclose this when I sell the car, and does it affect the resale value? How much more would it cost to pay out of pocket for manufacturer parts?
Unfortunately, this is happening to Texas drivers every day thanks to the fine print in their auto insurance policies.
Original Equipment Manufacturer (OEM) parts are made by the company that built your vehicle. Aftermarket parts are made by third parties who reverse-engineer those parts and sell them for less.
The difference in quality can vary widely. Many aftermarket parts perform well – brakes and suspension parts sometimes even outperform original manufacturer parts. But many aftermarket parts fall short.
Insurers push aftermarket parts for one reason: they're cheaper. Those savings go straight to the insurer's bottom line.
Body shop professionals have long documented issues with poor-fitting aftermarket panels and trim. Studies have also found that OEM parts tend to be superior for safety system components such as sensors in crumple zones and airbag housings, precision-dependent parts such as engine and transmission components, and cooling system parts such as thermostats and water pumps.
Insurers push aftermarket parts for one reason: they're cheaper. In some cases, dramatically so. Those savings go straight to the insurer's bottom line. They do not come back to you as lower premiums. In fact, you might ultimately pay more: a poor-performing part could lead to other problems down the line – from an irritating rattle to leaky seals to sensor issues your mechanic has to troubleshoot.
Today’s cars are highly integrated systems. The way a door panel absorbs impact is calculated in relation to the exact materials and geometry of every surrounding component. When you swap in an aftermarket part that's slightly thinner, differently shaped, or made from a different alloy, you introduce a variable the engineers never tested.
Insurance companies will tell you that aftermarket parts are "certified" and "equivalent." But equivalent by what standard, and certified by whom? The certifying bodies are often industry-funded, and independent testing has repeatedly found gaps between what's claimed and what's delivered.
Texas does require insurers to disclose when aftermarket parts will be used in a repair. That's the law, even if it’s just in the fine print. But disclosure is not protection. More importantly, being told you're getting a lesser product still doesn't mean you can say no.
Texas law does not require insurers to use OEM parts, nor does it require them to use parts that meet OEM-quality standards in any meaningful, enforceable way. And it does not give you the ability to demand OEM parts without paying the difference out of your own pocket — even when the damage was caused by someone else, and you're filing against their liability policy.
This is the core of the scam: you are legally entitled to have your car restored to its pre-accident condition, but the insurer defines "pre-accident condition" using cheaper, often inferior parts.
What should the Texas Legislature do? Three things:
Require insurers to use OEM parts for repairs on vehicles less than five years old if original parts are still readily available and the vehicle's safety systems are most sensitive to component variation.
The state should establish enforceable standards for aftermarket part quality that go beyond rubber-stamp certifications. Third-party testing with real consequences for noncompliance would give the certification process real teeth.
Third, Texas should close the "pay the difference yourself" trap. When an insurer's own policyholder is not at fault for an accident, the insurer covering the at-fault driver should not be permitted to impose aftermarket parts on the victim's repair.
A new car in today’s market can be a high-five-figure investment or more. Texans deserve better protection for those investments, and it should be a high priority for the 2027 Texas Legislative Session.