OEM Coverage
OEM (Original Equipment Manufacturer) coverage in auto insurance is an optional add-on that guarantees repairs after a covered loss use genuine parts from your car's manufacturer, ensuring perfect fit and quality, unlike cheaper aftermarket parts. This endorsement prevents insurers from using generic or reconditioned parts, especially important for newer vehicles where OEM parts are readily available and quality difference matters, though it often requires comprehensive/collision coverage and may have age limits on the vehicle. If you have ever spoken with a body shop technician they will tell you the aftermarket and reconditioned parts do not fit as well when repairing a damaged vehicle.
What it is
- Guaranteed genuine parts: Ensures replacement parts come from the same company that built your car (e.g., a Ford part for a Ford).
- Quality assurance: OEM parts are designed for your specific make and model, offering better fit, finish, and performance than many aftermarket alternatives.
How it works
- Optional add-on: You must add it to your policy, usually for a small extra cost.
- Requires full coverage: Typically requires you to have both comprehensive and collision coverage.
- Age restrictions: Often limited to newer vehicles (e.g., 10 years or newer) as older cars may become ineligible as parts become scarce.
- Coverage does not apply to glass
Why you might want it
- Maintain original quality: Keeps your car in its original factory condition.
- Better fit: Prevents issues like poorly fitting body panels or less effective components.
- For newer cars: More relevant for newer vehicles where OEM quality is a significant differentiator.
What happens without it
- Your insurer can use cheaper aftermarket parts (made by other companies)