GMAC Insurance Introduces Industry's First Nationwide OEM 'SmartParts Promise' Guarantee

Company Responds to Growing Trend of Generic "Aftermarket" Parts Used Instead of Manufacturer Parts in Auto Collision Repairs

ST. LOUIS, Mo., May 1 /PRNewswire/ -- GMAC Insurance today announced its "SmartParts Promise," a unique program guaranteeing the use of Original Equipment Manufacturer (OEM) parts -- those made by the same company as the vehicle -- in all collision repairs(1) to ensure the best quality repairs possible after an accident. The benefit is immediately available free of charge to all policyholders nationwide.

According to a study conducted by GMAC Insurance, more than half of Americans do not know if their insurance companies specify the use of OEM parts in repairs. And it's not an issue drivers have to face until they have an accident.

"Drivers who have just been in an accident have enough on their minds," said Sheena Poe, chief claims officer at GMAC Insurance Personal Lines. "They shouldn't have to worry about the quality of their repairs. With our SmartParts Promise, we do the legwork, making sure drivers receive OEM parts, so they can focus on getting back to their lives."

Understanding the differences between OEM parts and aftermarket parts can help consumers get the high quality repairs they expect from their auto insurance company. An OEM part is made by the same company that made the original part, as opposed to an aftermarket part that is made by another company as an imitation of the original part. These less expensive parts may decrease the value of the car, affect its appearance, compromise safety and jeopardize the warranty.

Unless an insurer specifically states that OEM parts will be used in repairs, aftermarket parts may be used instead. Ve Linda Weatherly from Birmingham, Alabama, who has auto insurance through another company, experienced that first hand. After learning that aftermarket parts were used, she said, "I feel cheated. I had insurance, and the insurance was supposed to restore my vehicle to non-accident status. Why else would you have the car repaired? But I felt like they didn't do that. They used inferior materials, so it wasn't the same car anymore. If you pay for insurance, you shouldn't have to be worried about the coverage."

As one of the few companies to specify OEM parts, GMAC Insurance allows its customers to have their car repaired with parts from the same company that originally built them. As always, customers can use the body shop of their choice or use a certified Gold Medal shop and receive a lifetime guarantee on repairs.

Paying the Price with Aftermarket Parts

With more than 50 million insurance transactions each year, many consumers will literally pay the consequences of not knowing the importance of using OEM parts. Reasons to select OEM parts include:

-- Money: Your car may lose value with aftermarket parts, and the use of OEM parts maximizes the residual value of your car. Also, if you wan OEM parts and your insurance company will not cover them, you may have to pay out of your own pocket to cover the difference.
-- Vulnerability: Aftermarket parts may void your vehicle manufacturer's warranty on adjoining parts and systems that those aftermarket parts cause to fail. That means you may have to pay if something goes wrong in the future, unless the body shop guarantees the repair.
-- Safety: OEM parts ensure that the original safety specifications of your vehicle are maintained. They are built by the same company that made the original part.
-- Aesthetics: OEM parts typically offer better fit and appearance than imitation aftermarket parts.
-- Peace of Mind: You'll be left with the satisfaction of knowing your car's value, warranty and your safety will not be compromised if OEM parts are used.

The SmartParts Promise is just one of GMAC Insurance's Smart Services, a first-of-its-kind collection of benefits intended to help ease the entire recovery process after an accident. The company plans to roll out these value-added policy perks throughout 2007.

To learn more about the SmartParts Promise and to receive a quote, call 1-800-123-GMAC, or visit www.gmacinsurance.com

The GMAC Insurance Group is one of the largest automobile insurers in the United States and is a wholly owned subsidiary of GMAC. GMAC Insurance Personal Lines offers a variety of property and casualty insurance products, including personal auto, RV, motorcycle, boat and commercial auto insurance. With a nationwide network of claims professionals, local independent agents and a 24-hour, toll-free claims hotline available 365 days a year, the GMAC Insurance Group provides superior claims service for its customers.

(1) This guarantee does not extend to radiators, A/C condensers, windshields, and routine maintenance parts, such as batteries, spark plugs and oil filters.

Source: GMAC Insurance