What is typically covered under after-market parts in insurance?

After-market parts in insurance typically refer to non-original equipment manufacturer (OEM) parts that can be used in vehicle repairs. The reason cost reductions for using non-original parts in repairs is the correct answer is because after-market parts are generally less expensive than OEM parts. Insurance policies often cover the cost of repairs using these more affordable alternatives, thereby reducing the overall claim expenditure.

Using after-market parts allows for greater flexibility in managing repair costs while still providing a practical solution to vehicle damage. This practice can help insurance companies manage expenses more effectively, leading to lower premiums for policyholders over time. Therefore, selecting after-market parts represents a cost-effective strategy for vehicle repairs under many insurance policies.