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The Pennsylvania
Insurance Department
Whether you have a general question,
or want to file a complaint, you can get
help at Consumer Services online
at www.insurance.pa.gov or contact
us toll-free at 1-877-881-6388.
Pennsylvania law permits the use of non-OEM/
aftermarket parts but “the operational safety of
the vehicle shall be paramount in considering the
specification of new parts.” This consideration is
vitally important for parts involving the drive train,
steering gear, suspension units, brake system, or tires.
Aftermarket parts are usually made by a company
different than the original part manufacturer. Be
sure to consult with your auto body repair shop or
insurance company if you have any safety concerns
or part fit concerns when aftermarket parts are used
to repair your vehicle. If aftermarket crash parts
are included in a vehicle appraisal, it must include a
statement that the appraisal has been prepared based
on the use of aftermarket crash parts, that the
use of these parts voids the existing warranty on the
part being replaced, and the aftermarket crash part
shall have a warranty equal to or better than the
remainder of the existing warranty.
Used parts are original equipment (OE) from your
vehicle’s manufacturer. Be sure to consult with your
auto body repair shop or insurance company if you
have any safety concerns about parts being used to
repair your vehicle.
Ultimately, the insurance company is responsible
for returning your vehicle back to its pre-damaged
condition. If the company uses new parts to replace
parts damaged on an older model vehicle, you may
be responsible for additional costs as the vehicle is in
better condition than before the accident.
What Happens if My Vehicle Is a
Total Loss?
A vehicle is a total loss when the cost to return it
back to the pre-damaged condition is more than the
value of the vehicle or the vehicle is damaged too
severely for repairs. There are different methods that
can be used to calculate the replacement value of your
vehicle. If you have questions regarding the method
used, contact your insurance agent or company.
Many people make monthly payments on their
vehicle. Depending on the agreement between the
lienholder and the owner, the insurance payment
can be made directly to the lienholder, the owner,
or both. If the actual cash value is less than you owe
on the vehicle, you may be responsible to pay the
difference to the lienholder. If you believe your loan
is more than the cash value, there are products that
are available at that time that may eliminate or offset
these costs.
One such product provided by insurance carriers is
Guaranteed Asset Protection (GAP) Coverage, which
will generally pay the difference between an insurance
company’s payment for a totaled vehicle and the
balance of a vehicle loan. This coverage is traditionally
purchased when an individual is buying a vehicle.
GAP coverage does not pay for deductibles, missed
payments, or late fees and many times there is a
limit to the amount it will pay. Check your policy
carefully when choosing to add GAP coverage. If
you have questions about GAP coverage, ask your
insurance agent or company.
Another product that may be purchased in relation
to a vehicle loan is a Debt Cancellation Agreement
(DCA). When this product is sold by the bank issuing
the vehicle loan, it is not considered insurance, but
it functions similar to GAP Coverage. A DCA is an
agreement between the loan issuer and the debtor to
cancel any remaining debt if the debtor experiences
a total loss and the amount of debt on the vehicle
exceeds its actual cash value. Also similar to GAP
Coverage, this product is traditionally purchased at
the time that the vehicle is bought.