What Insurers Don’t Tell You About “Like Kind and Quality” Parts

A vehicle that has been repaired with like kind and quality parts. There's no difference...yet

When you get into an accident, you expect your insurance company to cover some if not all of the cost. You also expect to get the best quality parts for your car. Insurers, however, often authorize what’s known as “Like Kind and Quality” (LKQ) parts instead of Original Equipment Manufacturer (OEM) ones. While this may seem fair on the surface, LKQ parts aren’t the same as OEM components, and that can be consequences for your vehicle’s performance and safety.

 

At Elmer’s Auto Body, we’ve seen the difference and know that OEM parts are best. That’s why that’s all that we use.

Key Takeaways

  • “Like Kind and Quality” parts are often used or aftermarket — not the same as OEM.
  • LKQ parts can cause alignment, durability, and ADAS performance issues.
  • OEM parts ensure safety and proper fit for your make and model.
  • You can request or negotiate for OEM replacements with your insurer.
  • Elmer’s Auto Body prioritizes your safety with OEM-approved repairs.

 

What “Like Kind and Quality” Actually Means

“Like Kind and Quality” may sound like they are on the same level as OEM components, but they aren’t. LKQ is an insurance term that stands for “used, recycled, or aftermarket parts that are comparable to OEM components.” That doesn’t mean they are the same or even approved by vehicle manufacturers. In many cases, LKQ parts come from salvaged vehicles or an unaffiliated third-party manufacturer.

 

Now here’s the issue with LKQ parts: there’s no guarantee that these pieces fit or function as they should. LKQ parts may not meet the same standards as OEM components or be made with the same materials.

 

Why LKQ Parts Can Be Risky

Like Kind and Quality parts can perform acceptably, but there is no telling which ones will do the job from those that will negatively impact your vehicle’s performance. Here are four reasons why LKQ parts can be risky:

 

  1. Fit and alignment issues: Even small dimensional differences can affect how panels, bumpers, or safety sensors align.
  2. Material variations: Non-OEM metal or plastic can be thinner, weaker, or more prone to corrosion.
  3. No warranty from the automaker: Most vehicle manufacturers will not honor warranties if non-OEM parts are installed.
  4. Possible ADAS interference: Many LKQ parts are not tested or certified for vehicles with Advanced Driver Assistance Systems (ADAS), which can lead to calibration failures.

 

Why OEM Parts Are the Safer Choice

So why are OEM parts better than LKQ parts? Why should you ask for OEM over LKQ? Not are parts are created equal in the automobile world. OEM parts are made by the manufacturer of your vehicle. They are also designed, tested, and certified by said manufacturer, making OEM parts the standard. Therefore, if you want your vehicle returned to its pre-accident condition, OEM parts are the best choice, as they meet all safety standards and restore structural integrity.

 

OEM components are priceless when it comes to critical systems, like airbag sensors, bumpers, structural frames, and ADAS pieces. When you get these as OEM parts, you know you’re getting components made with your vehicle’s exact make and model in mind. No guesswork. No mistakes.

 

What To Do When Your Insurer Insists on Like Kind and Quality Parts

In New Jersey, you have the right to request OEM parts for your auto repair. Your insurer, however, may insist on LKQ parts. They tend to do this to bring the cost of the repairs down for themselves.

 

Keep the following in mind:

 

  • Ask for transparency. Request a detailed list of parts being used, including whether they’re OEM, aftermarket, or recycled.
  • Review your insurance policy. Some policies allow for OEM parts, especially if you purchased an OEM parts endorsement.
  • Request a supplement. If an LKQ part doesn’t fit properly, your repair shop can request insurer approval to replace it with an OEM part.
  • Document everything. Keep photos, estimates, and all correspondence with your insurer and repair shop.
  • Choose your repair facility. You are not required to use an insurer’s Direct Repair Program (DRP) shop. Elmer’s Auto Body works for you, not the insurance company, and we also only use OEM parts.

 

Pro Tip

Even if your insurer pushes for LKQ parts, you can often negotiate OEM replacements for critical safety components. Always ask your repair facility to identify any non-OEM parts before installation. Once they’re installed, it’s much harder to prove they’re causing problems.

 

FAQs

Are LKQ parts the same as OEM?
No. LKQ parts are used or aftermarket components meant to mimic OEM ones but may not meet the same standards.

Can I refuse LKQ parts?
Yes, though it depends on your policy. You can request OEM parts or add an OEM endorsement for future coverage.

Will OEM parts cost more?
Usually, yes — but they restore your vehicle to factory condition, protecting your safety and long-term value.

 

Avoid LKQ Parts By Choosing Elmer’s Auto Body

While Like Kind and Quality parts may function properly, you don’t want to take a risk when it comes to your vehicle’s performance and safety. Make sure you’re getting OEM parts for all auto body repairs. The first step is asking your insurance company. Next, choose a South Jersey collision repair shop like Elmer’s Auto Body. We’ve been in business since 1947 and have always used OEM. We’re here for you, not the insurance companies.

 

Protect Your Vehicle with the Right Parts

Don’t settle for less than OEM-quality repairs. Elmer’s Auto Body ensures your vehicle is restored to factory standards — safely, precisely, and without compromise.

Schedule Your Inspection Today

Can You Demand OEM Safety Components After a Collision?

An image of a car engine with OEM safety components installed correctly

Not every replacement part is made equally. That may sound like an exaggeration, but it’s the truth. Insurance companies attempt to save money on repairing your vehicle by authorizing aftermarket or used parts and safety components. Unfortunately, those savings can also come at a cost to your safety. It’s not worth the risk. Critical components, like your airbags and ADAS sensors, shouldn’t come secondhand. That’s why you need to request OEM safety components when getting your vehicle repaired.

 

Let’s take a look at OEM safety components, why they are important, and what your rights are when dealing with your insurance company.

 

Key Takeaways

  • OEM safety components are made by your vehicle’s manufacturer to meet crash-tested standards.
  • Aftermarket or recycled parts may not provide the same fit, strength, or protection.
  • New Jersey drivers have the right to request OEM parts in repairs, especially for safety systems.
  • Insurance companies may default to cheaper alternatives, but you can challenge their estimate.
  • Elmer’s Auto Body ensures repairs meet OEM standards for safety, structure, and performance.

 

What Are OEM Safety Components?

OEM means “Original Equipment Manufacturer,” which refers to parts made by the manufacturer that made your vehicle. So if you have Toyota, you get OEM parts from Toyota. OEM parts are designed to match your vehicle’s specifications. Not only do they fit better, but they perform just as the manufacturer intended, meaning there’s no risk of a negative impact to performance or safety.

 

Examples of OEM safety components include:

 

  • Airbags and crash sensors
  • Seatbelts
  • ADAS sensors, including collision warning, adaptive cruise control, and lane assist
  • Steering and suspension components
  • Structural frame reinforcements
  • Crumple zones

 

In modern vehicles, these safety systems are designed to be all-encompassing. If one part isn’t performing as it should, the entire system is slowed down. Your car may react differently, or certain safety systems may not deploy accurately, should something other than OEM safety components be used.

 

Why Do OEM Safety Components Matter?

Aftermarket safety components may not seem like a big deal. However, in order to function properly, vehicles today need every piece calibrated properly. Minor variations in the fit of one piece could throw off how the entire vehicle behaves.

 

OEM safety components ensure:

 

  • Proper fit and function. OEM parts are designed by the manufacturer to fit the exact dimensions of your vehicle.
  • Crash-tested reliability. OEM parts are tested within the vehicle to ensure everything functions as it should. Aftermarket pieces are not.
  • Consistent sensor alignment. ADAS and electronic safety components need to be installed and calibrated to exacting standards. Without that, the systems may not work.
  • Full restoration of crash protection. Your vehicle is returned to pre-accident condition when OEM parts are installed.

 

Aftermarket parts may be cheaper, but they don’t always meet certain standards. Some parts may also rust faster or be ill-fitting, causing gaps that compromise your vehicle’s safety.

 

Can You Request OEM Safety Components From Your Insurance?

Yes, you can and should.

 

Here’s the thing, you have a right to request OEM parts as a New Jersey resident. For safety systems, OEM parts are vital to a correct repair. However, many insurance companies will write estimates using cheaper aftermarket or LKQ—like kind and quality—parts to save money on their end.

 

You don’t have to accept that. If you want OEM safety components for your auto repair, do the following:

 

  1. Notify your repair shop that you want OEM safety components installed.
  2. Ask your insurer to amend the repair estimate to reflect OEM parts.
  3. Request documentation showing the safety standards of any proposed aftermarket parts.
  4. Choose your repair shop—you’re not required to use the insurer’s preferred provider (DRP).

 

At Elmer’s Auto Body, we can help you negotiate for OEM parts, since that’s all that we use. We’re not a DRP. We’re an auto body repair shop that has been around since 1947.

 

Can an Insurance Company Refuse Your Request?

In some circumstances, an insurance company can refuse to provide your with OEM safety components. This may happen if your vehicle was totaled.

 

You can do the following to challenge their refusal:

 

  • Pay the difference. You can elect to pay out-of-pocket for OEM components.
  • Use manufacturer warranties. If your vehicle is still under warranty, OEM parts are required to maintain its validity. Mention this when negotiating with your insurance company.
  • File a dispute. You can formally challenge an insurer’s decision through New Jersey’s Department of Banking and Insurance or with your state’s consumer protection agency.
  • Document everything. While this one won’t necessarily prevent a disagreement, it can better essay your claim. Take photos of the damages and also have a reputable auto body repair shop like Elmer’s Auto Body take photos, measurements, and estimates to support your case.

 

FAQs

Can I insist on OEM parts if my car is still under warranty?
Yes. Many vehicle warranties require that OEM parts be used for repairs to keep the warranty valid.

Will my insurance cover OEM safety components?
It depends on your policy. Some insurers only cover OEM parts for newer vehicles or when specified in your policy.

Do aftermarket safety parts pass crash testing?
Not always. Unlike OEM parts, most aftermarket components aren’t tested as part of the full vehicle system, which can reduce crash protection.

Can Elmer’s Auto Body help if my insurer denies OEM parts?
Yes. Our team works directly with insurers to advocate for OEM replacements and ensure all repairs meet safety standards.

 

Choose Elmer’s Auto Body for OEM Safety Components and Repairs

Now that you know that you can request OEM safety components for your vehicle during repairs, it’s time to find a repair shop to do just that. At Elmer’s Auto Body, we have decades of experience advocating for our clients. We also know how to restore vehicles to their pre-accident condition. Our auto body repair shops in South Jersey are certified by multiple manufacturers, and we always use OEM parts for every project.

Schedule Your OEM-Safe Repair With Elmer’s Auto Body

When your vehicle’s safety is on the line, don’t settle for less than factory-quality repairs. At Elmer’s Auto Body, we use OEM safety components and advanced repair techniques to restore your vehicle to its pre-accident condition—safely and reliably.

Serving drivers across Gloucester, Camden, and Burlington Counties, our team is here to help you navigate your insurance claim and ensure your vehicle’s integrity from start to finish.

Schedule Your Estimate Today

What to Do If Your Insurance Company Sends You to a DRP Shop (And You Don’t Want To Go)

A damaged car awaits repairs. Will you choose a DRP shop or Elmer's Auto Body?

After a car accident in New Jersey, your insurance company may “recommend” you to a specific auto body shop in their network. This is often called a Direct Repair Program Shop, or DRP shop. But what if you don’t want to go there? What if the reviews aren’t sitting well with you? Good news: You don’t have to go where the insurance company tells you. Here’s what every South Jersey driver should know about DRP shops, your rights under New Jersey law, and how to protect your vehicle, your wallet, and your peace of mind.

Key Takeaways: What to Do If Your Insurance Sends You to a DRP Shop

  • ✅ In New Jersey, you have the legal right to choose your auto body shop.
  • ✅ DRP (Direct Repair Program) shops may prioritize insurance interests, not your vehicle’s longevity or safety.
  • ✅ Elmer’s Auto Body uses OEM parts and certified repair methods—we work for you, not the insurance company.
  • ✅ Insurance must still cover repairs at the shop of your choice, as long as estimates are reasonable.
  • ✅ We’ll help handle insurer communication and justification, so you’re never alone in the process.

 

What is a DRP Shop?

As mentioned previously, DRP stands for “Direct Repair Program.” DRP is a network of auto body shops that have agreements with insurance companies to perform repairs according to pre-negotiated terms. Insurance companies often recommend DRP shops because:

 

  • Labor and parts cost may be lower for the insurance company
  • Repairs are often completed quickly
  • Direct lines of communication with the insurer

 

However, what benefits the insurer may not always benefit you, especially when it comes to quality, parts, and thoroughness.

 

You Don’t Have to Choose Direct Repair Program Shops

In New Jersey, insurance companies can only recommend a Direct Repair Program shop. However, you do not have to require you to use a specific repair shop. According to the New Jersey Department of Banking and Insurance, you have the right to choose where to take your vehicle for repairs. So if you want to choose Elmer’s Auto Body in Sewell, Medford, or Mt. Ephraim, your insurance provider can’t tell you otherwise.

 

Furthermore, if you go first with a DRP shop and then decide to go somewhere else because the service didn’t meant your expectations, you can do that as well. We’ll help!

 

Why You Might Want to Avoid a DRP Shop

Not every DRP shop is going to do poor work on your repair. However, the system is designed to serve the insurance provider’s interest, not yours. DRP shops may even cut corners on repairs to save on the cost. Here’s some methods used to make repairs cheaper for insurers:

 

  • Use of non-OEM or recycled parts
  • Rushed repairs to meet timelines
  • Skipping essential structural scans
  • Missing ADAS recalibrations
  • Inconsistent communication and low transparency

 

At Elmer’s Auto Body, we don’t have a DRP agreement with insurance providers, but we do maintain good relationships with many. We work for our clients, not the insurer. Our priority has been and always will be restoring your vehicle to its pre-accident condition with OEM parts.

Pro Tip from Elmer’s Auto Body

If you’re unsure whether a DRP shop is the right choice, ask for the shop’s certifications, whether they use OEM parts, and if they perform structural scans and ADAS calibration. If they don’t offer full transparency, it’s your cue to walk away—and call Elmer’s instead.

 

What to Say If The Insurance Adjuster Pushes a DRP Shop

If you’ve already chosen Elmer’s Auto Body or another trusted shop and your adjuster insists on their preferred vendor, here’s how to respond:

 

  1. “I understand, but I’ve chosen my own repair shop.” You don’t have to give a reason. It’s your right.

 

  1. “Can you email me everything in writing?” This discourages pressure tactics and gives you a record of what’s said.

 

  1. “I’d like to review my policy and get back to you.” Take your time. You’re not obligated to rush into anything.

 

If you ever feel uncertain or pressured, contact us directly. We’ll help you understand your rights and even speak with the insurer on your behalf.

 

Will Insurance Still Cover Repairs If You Don’t Use the DRP Shop?

Yes. It’s your right to choose where you would like to take your car for repairs. That means that insurance must cover those repairs at any shop of your choosing, so long as the costs are within industry standards.

 

Elmer’s Auto Body works alongside insurance companies to make sure the full scope of repairs are covered. We also provide full documentation, OEM part justification, structural and diagnostic scans to your insurer so that they can’t deny your claim. Additionally, any changes that need to be made to the estimate or final price will be communicated to you and the insurer.

 

How Elmer’s Auto Body Makes the Process Easy

We’ve helped thousands of drivers across Gloucester, Camden, and Burlington counties deal with insurance claims without the runaround. Here’s how we make it easier for you:

 

  • We help coordinate with your insurer without compromising quality.
  • We walk you through your estimate so you understand every line.
  • Our certified technicians use OEM parts and factory-correct procedures.
  • We keep you informed with digital updates, texts, and direct contact.

 

Insurance DRP FAQ

1. Can my insurance company force me to use their DRP shop?
No. New Jersey law protects your right to choose your own auto body repair shop.
2. Will I have to pay more if I go to a non-DRP shop?
Not necessarily. If your repair estimate is fair and within industry standards, your insurance must still pay.
3. What’s the downside of using a DRP shop?
Some DRP shops may use non-OEM parts, cut corners to save money, or skip key diagnostics and calibrations.
4. Can Elmer’s Auto Body work with my insurance?
Yes. We work with all major insurers, but we don’t let them dictate how your car is repaired. We advocate for your vehicle’s safety and quality.
5. What if I already authorized repairs at a DRP but now have doubts?
You may be able to cancel the repair authorization if work hasn’t started. Contact us and we’ll help you navigate next steps.

 

Don’t Settle For a DRP Shop, Choose a Top-Rated Auto Repair Shop in South Jersey

If the DRP shop doesn’t meet your standards, don’t settle for it. Your car was in an accident and needs to be returned to its previous condition, so you should only choose the best. If your insurer is pushing a Direct Repair Program shop and you’re not comfortable with it, let us know. At Elmer’s Auto Body, we handle the hard conversations with insurers so you don’t have to.

 

Need repairs or a second opinion after an accident? Call or visit one of our three South Jersey locations in Sewell, Medford, or Mt. Ephraim, or fill out our online estimate form to get started. Let’s get your vehicle—and your confidence—back on the road.

What Happens When Insurance Refuses OEM Parts? Know Your Rights

When insurance refuses OEM parts, you can fight back.

After an accident, things tend to get confusing and frustrating. Not only are you dealing with the inconvenience of a damaged vehicle, you may also have injuries and other personal matters to tackle. Insurance companies also tend to have their preferences—and those may not always align with what you want. For instance, what if you want Original Equipment Manufacturer (OEM) parts for your repairs, but your insurance says no? Can your insurance really refuse that request? As an insurance policyholder in New Jersey, you have certain rights. Knowing those rights will make all the difference in where you take your vehicle for auto repair and what kind of parts you receive.

At Elmer’s Auto Body, we want to help New Jersey drivers like you get back on the road safely, which is why we also ensure you know your legal auto repair rights.

 

Key Takeaways

  • If your insurance company refuses OEM parts, your repair estimate may include aftermarket or recycled parts, which can impact quality, fit, and long-term performance.
  • In New Jersey, you have the right to request OEM parts, but if your vehicle is over two years old with more than 30,000 miles, you may have to pay the cost difference yourself.
  • Auto body shops like Elmer’s Auto Body can advocate for OEM parts on your behalf when safety, fit, or vehicle systems are at risk, and may help get insurer approval with proper documentation.
  • You can formally dispute your insurance company’s decision through New Jersey’s Department of Banking and Insurance if you believe aftermarket parts compromise your vehicle’s safety or value.
  • Disagreements over parts can delay repairs, so it’s important to review your policy, talk to your repair shop early, and understand your rights under New Jersey law.

 

What Happens When Insurance Refuses OEM Parts?

After an accident, you expect your vehicle to be repaired using the same quality parts that it originally had. But if your insurance company says no to those OEM parts, what can you do?

 

1. Check Your Repair Estimate

When your insurance company refuses OEM parts, the repair estimate they approve will likely include aftermarket or recycled (salvage) parts. These are typically less expensive for the insurer but may not offer the same quality, durability, or exact fit as factory parts.

Aftermarket parts are made by third-party manufacturers and can vary in material, dimensions, and performance. Recycled parts, on the other hand, come from other vehicles and may have wear and tear depending on their age and condition. While your repair shop doesn’t have to use these parts, the insurance payout is based on what they approved. So if OEM parts are used instead, you could be responsible for the cost difference.

 

2. You Can Legally Request OEM Parts—But May Pay The Difference

You don’t have to accept the use of aftermarket parts for your vehicle repair. However, in New Jersey, there is no legal requirement for OEM use either. In other words, NJ insurance companies can opt to use aftermarket or salvage parts for auto body repair if the vehicle is over two years old and has more than 30,000 miles.

Now, as mentioned previously, while you have the right to request the use of OEM parts, you may have to pay the price difference out-of-pocket. For instance, if the insurance company covers a $200 aftermarket fender and the OEM version costs $400, you would be responsible for the $200 gap. While it’s an added expense, many vehicle owners feel the added quality and long-term reliability are worth it.

 

3. The Auto Body Repair Shop May Push Back on Your Behalf

Not all situations are final. If your body shop believes the OEM part is necessary for a safe, proper repair, they may be able to advocate for it. At Elmer’s Auto Body, we frequently review insurance estimates and push back when we believe alternative parts could compromise vehicle structure, fitment, or safety. Furthermore, we only use OEM parts for auto body repair.

Shops can provide documentation to the insurer explaining why an OEM part is justified—especially for structural components, ADAS-related sensors, or vehicles still under manufacturer warranty. In many cases, insurance companies will revise their estimate when provided with clear evidence and reasoning.

 

Pro Tip

If your insurance company won’t approve OEM parts, talk to your repair shop. A reputable auto body shop can often push back on your behalf and provide documentation that justifies OEM use—especially for safety-critical or warranty-related repairs.

 

4. Dispute the Insurance Decision

If the insurance company continues to refuse to cover OEM parts for accident repair, you can file a formal complaint or appeal the decision. In New Jersey, the Department of Banking and Insurance allows consumers to challenge claim decisions when they believe repair quality or vehicle value is at risk.

To support your dispute, you’ll want to collect written estimates, photos, and a repair shop statement that outlines why OEM parts are necessary. Documentation showing that aftermarket parts don’t meet safety or performance standards can strengthen your case.

 

5. Repairs May Be Delayed

Keep in mind that any disagreement in parts may cause a delay in the repairs. Most repair shops wait for final insurance approval or confirmation on who is paying for what before beginning work. This avoids billing confusion and ensures you’re not surprised by unexpected out-of-pocket costs once the job is complete.

To minimize delays, talk with your repair shop early about your preferences and check your insurance policy for any OEM-specific clauses. Knowing what’s covered—and what’s not—can help avoid frustrating delays and get your vehicle back on the road faster.

 

What are Your Legal Rights for Auto Repair in New Jersey?

When it comes to car repair after an accident, you have rights, including:

  1. The right to choose your repair shop, no matter what insurance recommends. Many insurance companies urge customers to use a “direct-repair facility” or DRP. These facilities have contractual agreements with insurance companies and will perform repairs quickly and within a specified budget, though this isn’t always the best for you.
  2. The right to receive written notice on which parts are being used for repairs. If you aren’t being given OEM parts, the insurance company or repair center must tell you that.
  3. You also have the right to request OEM parts, even if the parts aren’t covered by your policy.
  4. You can challenge insurance decisions that may compromise the quality and safety of your vehicle.

 

Frequently Asked Questions

1. Can my insurance company refuse OEM parts for my vehicle repair?

Yes. In New Jersey, insurers can deny OEM parts for vehicles that are more than two years old and have over 30,000 miles. In these cases, aftermarket or recycled parts may be approved instead.

2. Do I have the right to request OEM parts?

Yes, you can request OEM parts at any time. However, if your insurance doesn’t cover them, you may be responsible for the price difference between the OEM and aftermarket part.

3. What should I do if I disagree with the insurance company’s decision?

You can dispute the insurer’s decision by filing a complaint with the New Jersey Department of Banking and Insurance. Supporting documents—like estimates and safety concerns—will strengthen your case.

4. Can the auto body shop help me get OEM parts approved?

Yes. If your shop believes OEM parts are necessary, they can advocate for you by explaining why aftermarket parts are not appropriate and submitting documentation to your insurer.

 

Get OEM Parts for Your Vehicle at Elmer’s Auto Body

When your insurance company refuses OEM parts, you’re not out of options. Rather, you just need to know what steps to take. Whether it’s paying the difference, disputing the claim, or asking your repair shop to push for better parts, you have choices.

At Elmer’s Auto Body, we use only OEM parts. Our team works with South Jersey drivers at our three locations—Medford, Mt. Ephraim, and Sewell—to get you the parts you need, even when your insurance company refuses to provide for OEM parts. If needed, we’ll advocate for OEM parts with your insurance company and provide documentation that supports their use.

If you’ve been in an accident and need a top-rated auto body repair shop in South Jersey or guidance on parts, coverage, or claims, give us a call or fill out the contact form. Elmer’s Auto Body of South Jersey is here to help!

How to Challenge a Low Insurance Payout After an Accident

Two men looking at low insurance payout documents. A wrecked car is behind them.

After a car accident, you want to know that your insurance company has your back and will cover the costs of damages and injuries. But what happens when the settlement offer comes in and it’s much lower than you expected? This situation is more common than many drivers realize. Fortunately, a low offer isn’t the end of the road. You have the right to challenge it. In fact, many legal advisers will tell you to challenge a low insurance payout.

At Elmer’s Auto Body, we’ve worked with many South Jersey drivers like you for decades. We understand how stressful it can be to deal with insurance companies. Here’s what you should know if you receive a low insurance payout offer after a crash.

Key Takeaways

  • Insurance companies often make low initial settlement offers to quickly close claims and minimize payouts, but you don’t have to accept the first number they give you.
  • You have the right to challenge a low offer by gathering evidence, getting a professional repair estimate, and submitting a formal demand letter with documentation of your losses.
  • A good settlement should fully cover vehicle repairs, medical expenses, lost wages, and possibly diminished value or pain and suffering, depending on the situation.
  • If the insurer won’t budge, you can escalate the matter by filing a complaint with the New Jersey Department of Banking and Insurance or speaking with a lawyer—especially if significant damages or injuries are involved.

Why is the First Insurance Settlement So Low?

Getting a low settlement may feel like a joke. However, insurance companies will make a quick initial offer after an accident that is lower than what your claim is actually worth. The goal is to close your claim swiftly, reducing what the company has to pay out.

Many drivers feel pressure to accept upon receiving the first check, particularly when without a car or dealing with medical bills. Keep in mind that once you accept, no matter how low the settlement, you give up the right to ask for anything else. Know your options before signing, and know that you can—and should—fight for a better settlement.

Pro Tip

Don’t accept the first insurance settlement offer right away. Take time to gather repair estimates and documentation, then submit a formal demand letter. This shows the insurer you’re serious about a fair payout and often leads to a better settlement.

What Can You Do If the Insurance Payout is Too Low?

There are several steps you can take to ensure that you get a better settlement if the first insurance payout is too low. Here’s what to do:

1. Don’t Accept the First Offer

You may be tempted to sign the first check. Instead, take your time to review the full details of the settlement. Compare it to your actual costs—including vehicle damage, medical bills, lost wages, and any other expenses. If the number doesn’t add up, don’t be afraid to say no.

Rejecting the first offer won’t cancel your claim. It usually leads to further negotiations, where you can present your side of the story and push for a fairer amount.

2. Get a Detailed Estimate from an Auto Body Repair Shop

If your vehicle was damaged in an accident, have an auto body repair shop draft a comprehensive estimate. At Elmer’s Auto Body, our team will assess all visible and hidden damages and create a written estimate that reflects the true cost of repair. Share the estimate with your insurer, as it gives you solid evidence to support a higher payout.

3. Write a Demand Letter

Writing a demand letter is another key step. This formal approach shows the insurance company that you’ve done your homework and are serious about a fair resolution.

Your demand letter should include:

  • A detailed summary of the accident and damages
  • A breakdown of your repair costs, medical expenses, and other losses
  • Supporting documents (repair estimates, photos, bills)
  • A specific dollar amount you are requesting

4. Organize Your Documents

The more organized you are, the better. Keep copies of:

  • Your initial claim
  • Insurance communications
  • Repair estimates
  • Medical records (if applicable)
  • Photographs of the damage

Documentation reinforces your claim should it escalate.

5. Consider Filing a Complaint or Getting Legal Advice

There is a chance that negotiations may stall, especially if your insurer refuses to alter their payout. In the event of such a dispute, you have the legal right to file a complaint with the New Jersey Department of Banking and Insurance. You also have the option to consult with an attorney—especially if injuries are involved or if the claim amount is substantial.

In most cases, your insurance company will opt to give you a better settlement as soon as you show willingness to challenge the payout.

What is a Good Insurance Payout After an Accident?

Knowing that your insurance payout isn’t low is always reassuring. Typically, a good insurance payout after a vehicle accident is one that fully compensates all losses—nothing more or less. That means that the settlement will cover:

  • Vehicle repair or replacement costs
  • Medical expenses
  • Lost wages
  • Diminished value

In some cases, you may also receive compensation for pain and suffering if the accident resulted in any kind of physical or emotional pain.

There are also more subtle signs of a good settlement, such as the offer matching a professional auto body shop estimate, including hidden or structural damage; no pressure from the insurance company to accept; all categories of loss are covered; and transparency about how the amount was calculated.

 

Frequently Asked Questions

1. Why is the first insurance settlement offer often so low?

Insurance companies typically make a low initial offer to quickly close claims and reduce their payout. This offer usually doesn’t cover the full cost of damages or medical expenses, so it’s important to review it carefully.

2. Can I reject the first insurance settlement offer?

Yes. You are not obligated to accept the first offer. Rejecting it often leads to further negotiations where you can provide evidence to support a higher payout.

3. What documentation should I gather to challenge a low insurance payout?

Collect a detailed repair estimate from a reputable auto body shop, medical bills, lost wage records, photos of the damage, insurance communications, and any other relevant documents to strengthen your case.

4. What are my options if the insurance company refuses to increase the payout?

You can file a complaint with the New Jersey Department of Banking and Insurance or seek legal advice, especially if your damages or injuries are significant.

 

Elmer’s Auto Body Can Help You Get Top-Quality Auto Body Repair

How do you challenge a low insurance payout after an accident? By not accepting when you know it’s too low. If the insurance company’s payout won’t cover the real cost of your accident, you have every right to challenge it. With clear documentation, a detailed estimate, and a willingness to stand your ground, you can negotiate a fairer outcome.

At Elmer’s Auto Body, we’re here to help you through it. If you’ve been in an accident and need trusted repair work—and support through the insurance process—contact us today at our Medford, Mt. Ephraim, or Sewell locations. Our team will get you an estimate and advocate for you as needed.

Why a Minor Collision Can Still Lead to a Total Loss Determination

Despite the minor damage, this bent rear panel still resulted in a total loss determination.

Minor accidents often cause cosmetic damages. Maybe an airbag goes off. Either way, you assume that your vehicle will be easily repaired and back on the road in no time. Then, that seemingly small collision ends with a total loss determination by your insurance company. It’s understandable that you would be appalled and question why such a thing has happened. Let’s get to the bottom of why this happens and what decisions you can make from here on out.

 

Key Takeaways

 

  • Insurance companies typically total a vehicle if repair costs reach 70-80% of its actual cash value (ACV), even if damage appears minor.
  • Modern vehicles have crumple zones that absorb impact, which can cause unseen frame or subframe damage, requiring expensive repairs to restore safety.
  • Features like ADAS sensors, cameras, and automated safety systems often require recalibration or replacement after even a minor collision, driving up repair expenses.
  • If your car is deemed a total loss, you can accept the payout, negotiate for a higher value, or keep the vehicle with a salvage title.

 

What is a Total Loss?

A vehicle is considered a total loss when the cost of repairs approaches or exceeds its actual cash value (ACV). Insurance companies typically use a threshold—often between 70% and 80% of the car’s value—to determine if repairs are financially feasible. Even if the damage appears minor, hidden structural issues or high repair costs can push the vehicle past this threshold.

 

Why Minor Collisions Can Result in a Total Loss

Now that you know what determines a total loss, let’s look at some of the reasons it happens after a minor collision:

 

1. Hidden Structural Damage

A small impact can still cause significant structural damage, especially in modern vehicles designed with crumple zones that absorb the force of a crash. While these zones help protect passengers, they can also lead to underlying damage that isn’t immediately visible. A misaligned frame, bent subframe, or weakened structural components may require extensive repairs to restore the vehicle’s integrity. Without proper repairs, the car may not provide the same level of protection in future accidents, making it unsafe to drive. These necessary but costly repairs can quickly add up, often surpassing the vehicle’s total loss threshold.

 

2. Technology and Safety Features

Modern vehicles are equipped with advanced driver assistance systems (ADAS), including lane departure warnings, automatic emergency braking, and parking sensors. Many of these technologies rely on sensors and cameras embedded in bumpers, side mirrors, and windshields. Even a seemingly minor collision can misalign or damage these components, requiring recalibration or full replacement to restore functionality.

 

Additionally, certain safety features, such as adaptive cruise control or collision detection systems, may need software updates after an accident, further increasing costs. Because these technologies are expensive to repair or replace, even a low-speed collision can lead to repair bills high enough for an insurance company to declare the car a total loss.

 

3. Airbag Deployment

If airbags deploy during an accident, repair costs increase significantly. Modern airbag systems involve more than just replacing the deployed airbags—associated components like sensors, crash modules, and seatbelt pretensioners may also need to be repaired or replaced. In some cases, a deployed airbag may require an entirely new dashboard or steering wheel, dramatically raising labor and part costs. Since airbag replacement is crucial for safety, insurance companies often consider the cost of these repairs when determining whether the vehicle is a total loss.

 

4. High Labor and Parts Costs

Auto body repairs involve labor-intensive work, from disassembling damaged areas to carefully realigning structural components. The cost of replacement parts—especially if original equipment manufacturer (OEM) parts are required—can be high, and shortages or supply chain issues can further drive up costs. Even if a car only has minor visible damage, the cumulative cost of parts, labor, and painting can quickly push repair expenses close to or beyond the vehicle’s actual cash value (ACV), making it uneconomical to repair.

 

5. Depreciation and Market Value

A car’s market value plays a crucial role in determining whether it is totaled. Older vehicles or those with high mileage depreciate over time, meaning even relatively inexpensive repairs can exceed their worth. Insurance companies assess the ACV based on factors like the vehicle’s age, condition, mileage, and recent market trends. If repair costs approach or exceed a certain percentage of the car’s ACV—typically around 70% to 80%—the insurer may deem it a total loss rather than invest in costly repairs.

 

Pro Tip

If your car is declared a total loss after a minor collision, don’t assume the insurance payout is final. Gather service records, recent repair receipts, and comparable listings to negotiate for a higher settlement. Many drivers leave money on the table simply because they don’t know they can push back.

 

What to Do If Your Car is Determined a Total Loss

There are three avenues you can explore if your car is deemed a total loss:

  • Accept the Settlement: The insurer will offer a payout based on the car’s ACV, allowing you to purchase a replacement vehicle.
  • Retain the Vehicle: In some cases, you can keep the totaled car, though it may receive a salvage title, which can affect its resale value and insurance eligibility.
  • Negotiate the Value: If you believe the insurance payout is too low, you can present evidence such as recent repairs, service records, or comparable market listings to negotiate a higher settlement.

 

Frequently Asked Questions

Why was my car totaled even though the damage looks minor?

Modern vehicles have complex safety systems and crumple zones that can be expensive to repair. Even if damage seems cosmetic, internal components or frame damage could push repair costs over your car’s value.

Can I keep my car if it’s declared a total loss?

Yes, you can choose to retain your vehicle. However, it will usually be issued a salvage title, which may affect your ability to insure or resell it later.

Is it possible to dispute a total loss valuation?

Absolutely. If you think the insurer undervalued your car, you can submit documentation like recent upgrades, service records, or listings of similar vehicles in your area to support a higher payout.

Do airbags automatically mean a total loss?

Not necessarily, but deployed airbags can significantly raise repair costs due to the parts and labor involved, which may lead to a total loss decision depending on your vehicle’s value.

 

Get Collision Repairs in South Jersey Done at a Certified Auto Body Repair Shop

Yes, even minor collisions can lead to a total loss determination if certain criteria are met. However, that doesn’t mean you need to accept the settlement. At Elmer’s Auto Body, our technicians assess damage thoroughly to determine the best repair solutions. If your car has been in an accident, contact us today for an evaluation at one of our three South Jersey locations. Let us help you get back on the road safely!