Monday, June 08, 2015

Used parts are often called LKQ- What is LKQ?



Used parts are often called LKQ for like kind & quality. LKQ parts are factory parts that come from salvaged vehicles and resold. LKQ parts are OEM parts that have been taken from another vehicle that is of the same make, model and body style. This "other vehicle" just happens to be in a junk yard.
It is a vehicle just like the one being repaired but it has been totaled and the salvage yard is selling the good parts from the vehicle. You are entitled to having your car returned to pre-loss condition under your insurance policy. The question arises,"Which is better for your car, the use of OEM (Original Equipment) or After-Market (non-Original Equipment) parts?"The answer: The parts used must be of L.K.Q. (Like Kind and Quality). It is the role of the collision repair facility to act as advocate and advisor, negotiating with the insurance company what is best for you. Remember that they are working for you, not the insurance company. Another thing to remember is that the insurance company is responsible for returning the vehicle to pre-loss condition. This means that if your car is five years old with 90,000 miles on it, the insurance company will do what is best based on the value and condition of the vehicle to return it to that value. This scenario may dictate the use of a less expensive after-market part of comparable quality. Comparable quality is defined as having a correct fit and OEM crashworthiness. If the part fails to match these qualifications, the insurance company may elect to go with a good used part off the same year, make, and model car, which would return the vehicle to pre-loss condition.
Remember, the insurance company is obliged to return the vehicle to its present value, not its value when it was new!

Next week , do you know what "betterment" refers to? Come back here to find out!