Buying spare parts after a car accident in India? Here’s how insurance affects your repair and part options

Introduction

If you’ve been in a car accident and need replacement parts, your insurance policy plays a much bigger role than you might think. Whether you're planning to claim repairs through a cashless garage or buy parts online for a reimbursement claim, understanding how insurance affects your options can save you both time and money.

In this blog, we’ll explain how car insurance impacts spare parts sourcing in India – from choosing between OEM and aftermarket parts, to working with authorized garages and online platforms. Backed by the latest data from ACMA, FADA, and SIAM, this guide is designed for car owners, workshops, and insurance-linked garages.

How insurance decisions shape spare parts usage

Car insurance, especially comprehensive policies, influences which spare parts are used after an accident. While the insurer provides guidelines, the customer typically decides:

• Where you can repair the vehicle (network vs. non-network garage)
• What parts are approved (OEM vs. aftermarket)
• Whether the repair qualifies for cashless service or reimbursement

OEM vs. aftermarket: What insurers prefer

• OEM parts (original equipment manufacturer) are preferred for new and luxury vehicles to ensure compatibility and maintain warranty coverage.
• Aftermarket parts are more common for older or out-of-warranty vehicles. These parts are often approved in reimbursement claims to reduce overall repair costs.

Cashless vs. reimbursement – how it changes your part sourcing

• Cashless insurance lets you repair your vehicle at a garage within the insurer’s network. The spare parts are directly billed to the insurer – no extra steps for you.
• Reimbursement insurance gives you more flexibility. You can choose any garage or even buy parts yourself (online or offline) – but you must:
  • Get prior approval
  • Use OEM or insurer-approved parts
  • Submit GST invoices and labor bills

This model is growing in tier-2 and tier-3 cities, where access to authorized brand service centers is limited and online sourcing is more convenient.

Real example: Audi repair using online spare parts

A recent example involves an Audi that was damaged in an accident. Instead of visiting an Audi-authorized service center, the owner sourced OEM parts online and had the vehicle repaired at another brand’s service center, where they had a good connection.

Was insurance applicable?

Yes – but only under reimbursement, since the repair was done outside the authorized network. The owner secured:

• Pre-approval from the insurer
• Genuine spare parts with GST-compliant invoices
• Clear labor documentation

This shows that even for luxury vehicles, flexibility is possible if the process is transparent and compliant with the insurance policy.

Insurers in India offering part-flexible repair options

Several Indian insurers allow reimbursement-based claims for non-network garage repairs. These policies give garages and car owners more control, if parts are OEM or approved and invoices are valid.

• Bajaj Allianz – Approves non-network repairs with documentation
• ICICI Lombard – Supports reimbursement with proper parts and bills
• HDFC ERGO – Offers both cashless and flexible reimbursement models
• Reliance General Insurance – Allows third-party garage repairs with pre-approval
• SBI General Insurance – Often used in rural or older vehicle segments

These insurers typically require a pre-repair inspection or photo evidence, and all part purchases must be clearly invoiced.

Digital platforms changing the spare parts and insurance ecosystem

With the rise of e-commerce and digitization, platforms like Autozilla are becoming essential to India’s insurance-based repair workflow.

Autozilla now supplies spare parts directly to Acko and HDFC ERGO-authorized garages, helping enable:

• Faster claim approvals and repairs
• Reliable access to OEM and high-quality aftermarket parts
• Transparent part tracking and inventory support for garage networks

This partnership ensures that parts used in insurance-backed repairs are policy-compliant, genuine, and sourced efficiently – even outside traditional dealership channels.

Data insights: the growing link between insurance, parts, and repairs

• India’s vehicle sales crossed 3.9 million passenger vehicles in FY2023, with used car transactions expected to exceed 7 million by FY2025
• The EV segment saw 49.2% year-on-year growth in 2023, driving demand for new types of parts (batteries, controllers, thermal systems)
• India's OEM component market stood at USD 62.4 billion in 2023, with insurance-linked claims contributing a steady flow of orders

What to expect going forward

As India’s car insurance adoption rises and more garages get digitized, the way parts are sourced after an accident will evolve:

• Digital garage platforms will standardize part usage and billing
• EV-ready insurance policies will bring new sourcing strategies for high-voltage components
• Reimbursement models will continue to grow, driven by online part availability and flexible garage partnerships

Conclusion

Whether you're a car owner filing a claim or a garage fulfilling insurance-based repairs, the type of insurance policy directly influences which spare parts are used and how they’re sourced.

With platforms like Autozilla connecting insurers and authorized garages digitally, the Indian auto repair and parts ecosystem is moving toward a faster, smarter, and more transparent future – where every part ordered is the right fit, backed by the right policy.