What is the definition of Generic Auto Parts?

Generic auto parts are parts that are manufactured by a company other than the one that originally manufactured the car. The cost for these parts, since they do not come from the original company, is generally lower than its identical counterpart that is produced by the original manufacturer.

The use of generic auto arts is highly encouraged by insurance companies, as this is one way to lower repair costs, and ultimately, premiums.

There is a debate on the use of generic auto parts but insurance companies argue that this will prevent the car manufacturing industry (or the original manufacturers) to have a monopoly over the replacement parts.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage