What is OEM Coverage?
OEM coverage is an additional type of insurance that will ensure only original equipment made for your make and model of car will be used during repairs.
Written by Mary Cahill
Reviewed by Kathleen Flear
OEM coverage, also known as an OEM endorsement, is an additional type of insurance that guarantees only original equipment made specifically for your make and model of car will be used during repairs after you put in an insurance claim.
It’s heartbreaking when you purchase a new vehicle and it gets damaged in a collision shortly after. You may even worry that after your car has been repaired, it may have been restored using unreliable or cheap parts. And since vehicles lose their value so quickly, you might be left wondering if investing in a newer car was worth it.
OEM coverage can help alleviate some of these concerns. When you know your car is being fixed using high-quality, model-specific parts, you can drive away from the repair shop with peace of mind.
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To help answer any questions you may have about OEM insurance is
car insurance
comparison expert and licensed broker super app Jerry
. Here, we’ll discuss the basics of OEM coverage—what it is, how it works, and whether it’s right for you. Keep reading to learn more, including how to save on insurance for your new car
. What is OEM coverage?
OEM stands for original equipment manufacturer and it refers to both the internal and external components of your car. OEM car parts are made by your vehicle’s original manufacturer—which means they fit your car perfectly and were not made to be used on any other make of car except the one you drive.
The only replacement car parts not available as OEM components are your car’s tires.
If your vehicle needs repairs after an accident, OEM coverage requires the repair shop to use OEM replacement parts when they fix your car. OEM replacement parts will function exactly like the original components.
The alternative to OEM parts is aftermarket parts, also called generic parts. Aftermarket parts can be used in several different makes and models of cars.
What cars are eligible for OEM coverage?
While OEM coverage is appealing, not all cars or all drivers are eligible for this endorsement. In order to purchase OEM insurance, you’ll need to meet the following requirements:
- Your car must be no more than seven years old.
- You must already be carrying comprehensive or collision insurance to purchase OEM as an add-on.
- Your insurance provider must offer OEM coverage—not all companies do.
How does OEM coverage work?
If you’re involved in an accident and have OEM coverage, you can file a claim with your insurance company and they will oversee the repairs to your vehicle.
Your insurance company has an obligation to ensure that the mechanics entrusted with fixing your vehicle are only using OEM components at no additional charge to you.
After your car is more than seven years old, your insurance company will automatically cancel your OEM add-on coverage at the time of your next renewal. Your vehicle is no longer eligible after its seventh year due to OEM parts for older cars being harder for mechanics to find.
What kind of parts are used when you don’t have OEM coverage?
If you’re in an accident and don’t have OEM coverage, your insurance company will cover the repairs to your car—but will likely only pay for aftermarket parts in order to save money on your claim.
On the other hand, if your insurance company isn’t covering repairs to your car after an accident, there’s a good chance that the repair shop will opt for OEM parts to fix your vehicle to make money for their business.
Whenever you’re having repairs made on your car, make sure you thoroughly review your estimate and ask the mechanic if you have questions about something.
Are aftermarket parts bad?
Not necessarily. Aftermarket parts are generic car parts, which means they’re not specific to your vehicle and are used for a variety of makes and models of cars.
Depending on what repairs need to be done, if your car is less than seven years old, you may want to prioritize OEM parts—especially if you need to replace a functioning component, like your car’s radiator.
If you choose to have aftermarket parts used in the repair, make sure that the replacement equipment has been approved by the Certified Automobile Parts Association (CAPA).
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Do I need OEM coverage?
If your car meets all the OEM requirements and you want a guarantee that only the highest-quality parts made especially for your car are used in repairs to your vehicle, purchasing OEM coverage is a good option for you.
If you don’t have OEM coverage but still want OEM parts used in your vehicle’s repair, you’ll need to pay the additional expense out of pocket.
Who is a good candidate for OEM coverage?
Do you love road trips? Have a long daily commute? People who tend to put a lot of annual miles on their vehicle could benefit from purchasing an OEM insurance policy.
Those who don’t drive their car daily probably don’t need to add OEM to their existing coverage.
However, any driver who insists that top-quality manufacturer-specific equipment be used as replacement parts in their car is a good candidate for OEM insurance.
How to find affordable OEM insurance
Your car is both an investment and a responsibility, and keeping it protected shouldn’t cost you a fortune. Enlisting the expert assistance of
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Not only that, once you choose a policy that’s right for you and are ready to make the switch, Jerry will even help you cancel your existing policy. On average, people who use Jerry save $887 a year on car insurance!
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Why does OEM insurance only cover parts for cars seven years old and under?
The older a car gets, the more difficult it is for mechanics to locate OEM parts that are compatible with the model year of the vehicle in need of repair. To make sure that OEM parts are available, only newer cars are eligible for OEM insurance.
Can I request OEM parts be used if I don’t have OEM coverage?
Yes. But if your insurance company is paying for the repairs you will likely be responsible for the extra cost of the OEM components—many insurance companies will only cover aftermarket replacement parts if you don’t have OEM coverage.
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