OEM Parts Coverage: What It Means for Your Car Repairs
After an accident, your insurance company sends you to a repair shop where they plan to use aftermarket parts — not the original parts made by your car's manufacturer. For some drivers, this is fine. For others, especially those with newer or luxury vehicles, it's unacceptable.
OEM parts coverage ensures your car is repaired with original equipment manufacturer parts — the same parts it was built with. This guide explains how OEM coverage works, what it costs, and whether it's worth adding to your policy.
What Are OEM Parts?
OEM stands for Original Equipment Manufacturer. These are parts made by the same company that built your vehicle or by a supplier specifically authorized by the manufacturer.
Examples of OEM Parts
- Honda parts made by Honda or approved suppliers
- Toyota parts made by Toyota or approved suppliers
- BMW parts made by BMW or approved suppliers
- Ford parts made by Ford or approved suppliers
OEM parts are identical to the parts your car had when it rolled off the assembly line.
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OEM vs. Aftermarket vs. Salvage Parts
| Feature | OEM Parts | Aftermarket Parts | Salvage/Recycled Parts |
|---|---|---|---|
| Manufacturer | Original vehicle maker | Third-party companies | Recovered from totaled vehicles |
| Quality | Guaranteed to match original | Varies widely | Varies; inspected but used |
| Warranty | Manufacturer warranty | Limited (if any) | Limited |
| Fit | Exact fit | May require modification | Exact fit if from same model |
| Cost | Highest | 20–50% less than OEM | 40–60% less than OEM |
| Insurance preference | Only with OEM endorsement | Standard | Sometimes for older vehicles |
| Availability | May require ordering | Widely available | Limited by inventory |
Aftermarket Parts Explained
Aftermarket parts are made by third-party companies not affiliated with the original manufacturer. They can range from:
- High-quality equivalents — Meeting or exceeding OEM standards (CAPA certified)
- Budget options — Lower quality, cheaper materials
- Performance upgrades — Better than OEM for specific purposes
Salvage/Recycled Parts
These are used parts recovered from totaled or junked vehicles. They're inspected and cleaned but have wear from previous use.
How Standard Insurance Handles Parts
The Default: Aftermarket or "Like Kind and Quality"
Most standard auto insurance policies require repair shops to use:
- Aftermarket parts for vehicles over 1–2 years old
- Recycled parts for some non-structural components
- OEM parts only for vehicles within the first year or with specific endorsements
Insurance Company Rationale
Insurers prefer non-OEM parts because:
- They're 20–50% cheaper
- They reduce claim costs
- They keep premiums lower for all policyholders
- Many aftermarket parts are CAPA-certified and equivalent in quality
What Is OEM Parts Coverage?
OEM parts coverage (also called an OEM endorsement or OEM parts rider) is an optional add-on that requires your insurance company to use original equipment manufacturer parts for covered repairs — rather than aftermarket or salvage parts.
What OEM Coverage Includes
- Body panels — Fenders, doors, hoods, bumpers
- Mechanical parts — Engine components, suspension, brakes
- Electrical parts — Sensors, wiring, modules
- Glass — Windshields, windows (some policies)
- Trim and cosmetic parts — Moldings, emblems, grilles
What OEM Coverage Does NOT Include
- Wear items — Tires, brake pads, wiper blades (excluded regardless)
- Maintenance items — Oil filters, air filters
- Betterment — Upgrading to newer/better parts than original
- Custom modifications — Aftermarket additions you made
How Much Does OEM Parts Coverage Cost?
Average Annual Costs
| Vehicle Type | Annual Cost | Monthly Cost |
|---|---|---|
| Economy car | $30–$60 | $3–$5 |
| Midsize sedan | $50–$100 | $4–$8 |
| Luxury vehicle | $100–$200 | $8–$17 |
| Exotic/sports car | $200–$400 | $17–$33 |
Cost vs. Value Analysis
Scenario: You pay $75/year for OEM coverage.
- Over 5 years: $375 in premiums
- One accident requiring $3,000 in OEM parts vs. $2,000 in aftermarket
- Insurance covers the $1,000 difference
- Break-even: One moderate accident every 5 years
Companies Offering OEM Parts Coverage
Insurance Companies with OEM Endorsements
| Company | Product Name | Cost | Notes |
|---|---|---|---|
| Travelers | Premier New Car Replacement + OEM | Included in tier | For vehicles under 5 years |
| Liberty Mutual | Better Car Replacement + OEM | $50–$150/year | Optional add-on |
| Hartford (AARP) | OEM Parts Endorsement | $40–$100/year | For members |
| Chubb | OEM Parts Guarantee | Included | High-end policies |
| Auto-Owners | OEM Parts Coverage | $30–$80/year | Optional add-on |
| Erie | OEM Parts Endorsement | $25–$60/year | Optional add-on |
Manufacturer Insurance Programs
Some manufacturers offer insurance with guaranteed OEM parts:
- BMW — InsureMyBMW
- Mercedes-Benz — Mercedes-Benz Insurance
- Lexus — Lexus Insurance
- Tesla — Tesla Insurance (in select states)
Do You Need OEM Parts Coverage?
You SHOULD Get It If:
- Your car is less than 5 years old — OEM parts maintain value and fit
- You own a luxury or exotic vehicle — Aftermarket parts may not meet standards
- Your car is under warranty — Non-OEM parts may void remaining warranty
- You plan to sell the car soon — OEM repairs maintain resale value
- You're leasing — Lease agreements may require OEM parts
- You value exact fit and finish — OEM guarantees perfect match
You Can SKIP It If:
- Your car is over 10 years old — Aftermarket parts are perfectly adequate
- You drive an economy car — Aftermarket parts are often equivalent
- You're keeping the car long-term — Resale value less important
- You have robust emergency savings — Can pay difference out of pocket
- Your insurer uses CAPA-certified aftermarket — Quality is guaranteed
State Laws on OEM Parts
Some states have specific regulations about OEM parts in insurance repairs:
| State | Regulation |
|---|---|
| California | Insurers must inform consumers if non-OEM parts are used |
| Florida | Consumer has right to choose OEM parts (may pay difference) |
| Massachusetts | Insurers must offer OEM coverage as option |
| Minnesota | Consumer notification required for non-OEM parts |
| Nevada | Insurers must disclose if aftermarket parts used |
| New York | Consumer must be informed of part type |
| Rhode Island | OEM parts required for vehicles under 30 months old |
Check your state's insurance department website for specific requirements.
FAQ
Will my insurance company automatically use OEM parts?
No. Standard insurance policies typically require the use of aftermarket or recycled parts for vehicles over 1–2 years old. You must specifically purchase an OEM parts endorsement to guarantee original manufacturer parts for repairs.
Can I request OEM parts without the endorsement?
You can always request OEM parts, but without an endorsement, you'll pay the difference between the cost of aftermarket and OEM parts out of pocket. This difference can be 20–50% or more, depending on the part and vehicle.
Do OEM parts affect my car's warranty?
Using aftermarket parts for repairs generally does not void your vehicle's warranty under the Magnuson-Moss Warranty Act. However, if an aftermarket part causes damage, the manufacturer may not cover the resulting repairs. OEM parts eliminate this concern entirely.
Are aftermarket parts really lower quality?
It depends. CAPA-certified aftermarket parts meet strict quality standards and are often equivalent to OEM. Non-certified aftermarket parts vary widely in quality. Your repair shop can advise on which aftermarket brands are reliable for your specific vehicle.
Does OEM coverage apply to windshield replacement?
Some OEM endorsements include windshield glass; others exclude it. Windshield OEM coverage is particularly important for vehicles with advanced driver assistance systems (ADAS) because aftermarket windshields may not work properly with cameras and sensors mounted behind the glass.
Can I add OEM coverage after an accident?
No. You cannot add OEM coverage retroactively to cover an accident that has already occurred. You must have the endorsement in place before the loss. If you're concerned about future repairs, add the coverage now — don't wait.
What's the difference between OEM and "genuine" parts?
"Genuine" parts are OEM parts sold through dealership parts departments with the manufacturer's branding and packaging. Functionally, they're identical to OEM parts. The term "genuine" is primarily a marketing distinction.
Conclusion
OEM parts coverage provides peace of mind that your vehicle will be repaired with the same parts it was built with — maintaining fit, finish, and potentially resale value. For newer vehicles, luxury cars, and leased vehicles, the relatively low cost ($30–$200/year) is often worth the guarantee.
However, for older vehicles and budget-conscious drivers, CAPA-certified aftermarket parts offer adequate quality at significant savings. The decision comes down to how much you value original manufacturer parts versus the cost of the endorsement.
Before purchasing:
- Check if your state requires insurers to offer OEM coverage
- Get quotes with and without the endorsement
- Consider your vehicle's age, value, and warranty status
- Ask your repair shop about aftermarket quality for your specific model
- Factor in your plans for keeping or selling the vehicle
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