Legal Question in Business Law in California

Read The Friendly Policy. Unfortunately most auto insurers now have a clause in the policy that says they can use aftermarket parts. Parts from a totaled car in a junkyard might be "used" parts, but in all probability the parts were actually made by your auto's manufacturer, so you might be getting a better deal than if they were to use "Brand X" parts.

They cannot require you to use "used" OEM parts, and they cannot require you to use after-market parts rather than OEM. You are free to require new OEM replacement parts. The catch, however, is that the insurance company only has to PAY for the cheaper option. If you want new OEM replacement parts, you have to pay the difference, because your car didn't have new OEM parts in it when it was damaged, so you are not entitled to new OEM parts at the insurer's expense. The insurance only covers your car "as is" at the time of the loss.