Freight charges on Original Equipment Manufacturer parts

General freight charges

Reasonable freight charges incurred due to no OEM dealer in the local area may become a part of the overall repair costs.

To be allowable as part of overall repair costs freight charges must:

• not be marked-up
• be substantiated by original invoices and
• be listed in the applicable parts column of the Estimate or Appraisal form, as they are subject to taxes.

Air freight or special delivery charges are considered only when:

• loss of use exposure is a factor, and
• the claims office has pre-authorized such charges.