Why OEM Parts Coverage Matters
By:Elena Majorian
When your vehicle is damaged in a covered loss, your auto policy may default to using aftermarket parts for repairs. These parts are produced by third-party manufacturers and may differ from the parts originally installed by the vehicle manufacturer in terms of fit, finish, materials, quality, or longevity.
For clients who want to maintain their vehicle with original manufacturer parts, many insurance carriers offer an optional original equipment manufacturer (OEM) Parts endorsement. When included on the policy, this coverage can help ensure that eligible repairs are completed using parts made by the vehicle’s original manufacturer rather than aftermarket alternatives.
There are typically guidelines that must be met for OEM coverage to apply. These may include the age of the vehicle, the make and model, and whether comprehensive and collision coverage are carried on the vehicle. Eligibility and coverage terms can vary by insurance carrier and policy.
It is also important to understand what OEM coverage does not provide. It is intended for repairs resulting from a covered claim—not for routine maintenance, normal wear and tear, or replacing parts because they have reached the end of their useful life.
For newer, luxury, or high-value vehicles, OEM coverage can be an important consideration when reviewing your auto insurance program. It is worth discussing with your insurance advisor to determine whether the endorsement is available and appropriate for your vehicle.