As a former operator and still a partner in an auto recycling business, I will try to dispell some of the claims made in the article linked by IAAL. There are advantages to using recycled parts, you are most likely getting a factory part rather than an inferior reproduction part, the part is going to fit your car correctly, it will not have to be made to fit, and because your car was repaired with a factory part, your warranty will not be affected. Go to a collision repair business and ask them what they prefer for replacement parts and most will say recycled. The quality of the repair, especially in the auto body business, depends more on the skill of the person doing the repairs, not the parts used. The business that I am a partner in will sell over $100,000 in used late model parts (meaning less than 3 years old) and we have never had a compaint about the quality of the parts. Your insurance agent is trying to save his company and you some money too, everyones insurance rates are based on how much they pay out for claims.