Table of Contents
OEM parts coverage decides which replacement parts go on your car after a covered accident. OEM stands for “original equipment manufacturer.” These parts are made by your car’s automaker, or by the company that supplies the automaker. Many drivers assume their policy pays for factory parts.
In most cases, it does not. Standard collision and comprehensive policies usually let the insurer pay for cheaper aftermarket or used parts instead. As a result, a bumper, headlight, or fender may come from a third-party company. Knowing how oem parts coverage works helps you avoid surprise bills. It also helps you protect your car’s fit, finish, and resale value.
This guide covers what standard policies pay for and what state laws require. It also explains what an OEM endorsement costs and how to push back on a repair estimate. The details matter more each year. Modern cars are full of sensors, cameras, and driver-assist systems, and a single front bumper repair can now cost well over $1,000.
What OEM Parts Coverage Means on a Standard Policy
Most auto policies promise to repair your car with parts of “like kind and quality.” That phrase is the key. It typically allows the insurer to choose among three types of parts. The first is OEM parts, which come from the automaker. The second is aftermarket parts, which are new but made by a different company. The third is recycled or salvaged parts, which are original parts taken from another vehicle.
Insurers often favor aftermarket parts because they cost less. Industry figures cited by insurers suggest aftermarket parts can cost as much as 50% less than the matching OEM parts. For example, an OEM headlight assembly might cost $900. A certified aftermarket version could cost $450 or less. Across millions of claims, that gap helps keep premiums down.
However, the savings come with trade-offs. Some drivers report aftermarket panels that fit poorly or show uneven gaps. Paint can also match less closely. Without oem parts coverage, you usually pay the price difference yourself if you insist on factory parts. Progressive explains that policies commonly allow non-OEM parts unless you buy added protection.
Safety is a separate question. The Insurance Institute for Highway Safety (IIHS) has found that cosmetic parts like fenders and bumper covers don’t change crash test results. Structural parts and safety systems are a different matter. Those parts deserve closer review on any estimate.
How OEM Parts Coverage Works: Endorsements, Costs, and State Rules
The most direct way to get oem parts coverage is an OEM endorsement. This is an optional add-on to your policy. It requires the insurer to use factory parts when they are available. Not every insurer offers it. The ones that do often set eligibility limits based on vehicle age.
Typically, endorsements apply only to newer vehicles. Many carriers cap eligibility at a set age or mileage, so older cars may not qualify at all. The cost is usually modest. Some estimates put the price at roughly $20 to $50 per year, depending on your vehicle and insurer. Luxury and newer models may cost more to endorse. Always get a written quote from your own carrier.
| Part Type | Who Makes It | Typical Cost vs. OEM | Covered Without Endorsement? |
|---|---|---|---|
| OEM (new) | Automaker or its supplier | Baseline (100%) | Sometimes, at insurer’s choice |
| Aftermarket (new) | Third-party manufacturer | Up to about 50% less | Yes, in most cases |
| Recycled / salvage | Original part from another car | Often lower than new OEM | Yes, in most cases |
| Remanufactured | Rebuilt original part | Varies by part | Yes, in many cases |
State law adds another layer. According to the National Association of Mutual Insurance Companies (NAMIC), many states require insurers to disclose aftermarket parts before repairs begin. Many states also require those parts to be of “like kind and quality” to OEM parts. One legal analysis counted about 35 states with statutes or rules on insurers’ use of non-OEM crash parts.
For example, North Carolina requires carriers to identify aftermarket parts on repair estimates and invoices. New Hampshire’s Insurance Department issued guidance on aftermarket parts and “like kind and quality” in January 2025. In December 2025, an Ohio bill was introduced that would require insurers to offer an OEM parts option. Rules change often, so check your state insurance department’s website for current requirements.
How to Get OEM Parts Coverage and Protect Your Repair
Start by reading your policy’s physical damage section. Look for phrases like “like kind and quality,” “non-OEM,” or “aftermarket.” Then check your declarations page for an OEM endorsement. If you don’t see one, oem parts coverage is probably not included. Call your agent and ask three direct questions. Does the company offer an OEM endorsement? What are the age and mileage limits? What is the annual cost?
Next, think about your vehicle. An OEM endorsement makes the most sense in certain situations:
- Your car is less than three to five years old.
- Your car is leased, since many leases require factory parts at turn-in.
- You drive a luxury or specialty model with tight panel tolerances.
- Your car has advanced driver-assist sensors behind the bumper or grille.
- You plan to sell or trade the car within a few years.
If you have an older car, the math often changes. For example, a 12-year-old sedan worth $6,000 may not justify the extra premium. Aftermarket parts can keep repairs affordable and help prevent a total loss. In most cases, the savings matter more than factory branding on an older vehicle.
After a claim, review the estimate line by line. Estimates use codes to show the part source. Ask the adjuster or body shop to explain any non-OEM parts. If your state requires disclosure, you should see that notice in writing. You can also ask for OEM parts on safety systems such as airbag parts, sensors, and structural components. Many shops will contact the insurer for approval when the automaker’s repair procedures call for factory parts.
📋 Get Free Insurance Guides
Free · No spam · Unsubscribe anytime
Keep in mind who is paying. If another driver caused the crash, you may file with their liability insurer. That insurer’s duty is generally to restore your car to pre-loss condition. However, your own endorsement won’t control their choice of parts. As a result, your oem parts coverage applies mainly to claims under your own collision or comprehensive coverage.
Finally, keep records. Save photos, estimates, invoices, and all emails with the adjuster. If a part fits poorly, report it to the shop right away. Most shops offer a written warranty on their work. If the insurer won’t resolve a dispute, contact your state insurance department. Regulators handle complaints at no cost to consumers.
Frequently Asked Questions
Does car insurance pay for OEM parts?
Not always. In most cases, standard policies let the insurer choose aftermarket or used parts of “like kind and quality.” However, buying oem parts coverage through an endorsement typically requires factory parts when they are available.
How much does oem parts coverage cost?
It is usually inexpensive. Some estimates put the cost at roughly $20 to $50 per year. Typically, the price depends on your car’s age, model, and insurer. Ask your agent for an exact quote.
Can I demand OEM parts if I don’t have the endorsement?
You can request them, but the insurer may not pay the full cost. As a result, you may owe the price difference out of pocket. However, some states require disclosure or “like kind and quality” standards, so check your state’s rules first.
Are aftermarket parts safe?
For cosmetic parts, the IIHS has found no change in crash test results. For example, a fender or bumper cover typically performs the same. However, ask for OEM parts on structural parts, airbags, and sensors when the automaker’s repair procedures require them.
Compare Insurance Rates
Ready to see if you could be paying less? Compare quotes from top insurers in your area. Getting multiple quotes is the most effective way to find a better rate.
(paid link)
Official Sources & Resources
For verified information on auto insurance regulations and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- Federal Trade Commission — Auto Insurance: consumer.ftc.gov
- USA.gov — Car Insurance: usa.gov/car-insurance
Content last reviewed November 2026. If you notice any outdated information, please contact us.