What is Competitive Auto Repair Parts? - Insurance Navy. Competitive Auto Repair Parts, also known as aftermarket parts, are vehicle components that are not produced by the original equipment manufacturer (OEM). These parts are used in the repair and maintenance of vehicles and are typically made by third-party companies. The term “competitive” refers to the competitive prices offered by the original manufacturer and third-party auto parts suppliers, providing a cost-effective alternative to insurance companies, auto repair shops, and vehicle owners—the parts often a quality replacement equivalent to the original manufacturer. These parts can include various components, from body panels and bumpers to mechanical parts like brake pads or spark plugs. They are often used in the auto industry and by insurance companies for collision repairs after automobile accidents.
If the auto policy allows for competitive auto repair parts, the repair cost will be lower for the insurer and reduce auto insurance premiums for policyholders.