get a car insurance quote 

oem coverage

What Is OEM Coverage and Why Is It Important?

Original Equipment Manufacturer (OEM) coverage is additional car coverage you can purchase that helps to ensure aftermarket parts will not be used when repairs are made to your vehicle. OEM insurance is important coverage because your car will be repaired with new OEM products that were originally designed and engineered to fit the make and model of your car. If maintaining your vehicle with original parts is a priority, that additional OEM endorsement can help you get the parts you need when they’re available.

When your car goes in for covered repairs, you may have questions about the parts and materials the body shop will use to restore your car. And one big question you need to have answered is whether or not your repair shop will use new OEM parts and components.

Here’s the good news: at American Family Insurance, OEM coverage is available when original factory parts are a priority for you. OEM insurance coverage requires that your car will be rebuilt with original factory equipment when possible.

There’s a lot to learn about additional OEM insurance for your car.

Does My Car Insurance Cover New OEM Auto Parts?

Most base auto policies don’t specifically require auto repairs to use OEM parts. When it comes to what parts will be used to replace broken components of your car, additional OEM coverage can help you feel better about repairs being made during a covered loss. Quality parts — designed and assembled by your car’s manufacturer — will be used whenever possible.

Getting OEM parts installed with this coverage can depend on several factors:

  • OEM coverage is only available for vehicles that are under seven years old
  • Your repair shop will defer to using OEM parts, but without this coverage they can use other aftermarket products as well
  • Repair shops may opt for used OEM parts when aftermarket options aren’t available — but with this coverage, new OEM products will be prioritized and used across the entire repair of your vehicle, when possible
  • Your car will need to have active collision-and-comprehensive coverage, or comprehensive-only insurance to qualify for OEM coverage

What's the Difference Between OEM Parts & Aftermarket Parts?

Aftermarket parts are auto components that are not sourced from your car’s maker. OEM parts are specifically designed for your car by its manufacturer. If you prefer to have original manufacturer parts and products used when repairs are made, OEM insurance coverage can require mechanics to install these preferred parts whenever possible.

Here’s more good news: opting for new OEM vs. aftermarket parts may even help you sell your car faster. This is because discerning used car buyers often like to know that when a vehicle was repaired, original parts were opted for when repairs were made. With this protection, prospective car buyers may be glad that you went that extra mile.

How Does OEM Endorsement Coverage Work?

An optional coverage that’s added to your auto policy, an OEM insurance indorsement works by helping to guarantee that only original equipment manufacturer’s parts and materials will be used when making covered repairs to your vehicle.

Suppose you’re driving on the highway and your vehicle is rear-ended by another car. With OEM parts insurance, all repairs made to your car will be made with OEM parts as a priority. The OEM endorsement on your auto policy mandates that all replacement parts for damaged bumpers, tail lights, etc., will be sourced from your car’s manufacturer whenever possible.


OEM Frequently Asked Questions

If you’ve got questions about OEM products and coverage, we’ve got your answers:

  1. Yes. Because OEM parts are phased out by the manufacturer as a car ages, we’re only able to offer this coverage with the following restrictions and requirements:

    • The vehicle must be zero to seven model-years old. For instance, a car produced in 2015 will be eligible for OEM coverage through 2022
    • The vehicle must carry collision-and-comprehensive coverage or comprehensive-only coverage
  2. OEM coverage will depend on many factors. The price may vary due to the number of vehicles on a policy and the state where the vehicle is registered. Connect with an agent to find out more

    If you’re looking for additional ways to save on your car insurance, check out American Family’s auto insurance discounts.

  3. As vehicles age, new OEM parts become progressively less available. This is because manufacturers decrease their production of many older parts and halt manufacturing of outdated parts that aren’t in high demand.

  4. Of course, we’ll do our best to locate an OEM part – first and foremost. When OEM parts aren’t available, we’ll try to replace the part with:

    • New, non-OEM (aftermarket) parts
    • Used OEM parts
  5. Once the vehicle turns seven, the OEM Parts coverage will be removed at the first renewal after the vehicle model-year is eight years old. We’ll also send the policyholder a letter with an update on the difference in coverage.

  6. No, this coverage does not apply to tires. It won’t apply to after-market hardware and will not apply to aftermarket customizations made to the vehicle.

  7. Both MN and IN have very strict laws about OEM parts usage and offerings. Our claims practices will remain consistent with current OEM requirements in these two states. As such, this coverage will not be available for purchase.

Why Do I Need an OEM Endorsement?

Without OEM insurance coverage, you may not be getting exactly what you had previously installed on your car. The OEM endorsement on your auto coverage can help guarantee that when OEM replacement parts are available, they’ll be used by the repair shop fixing your car. Here are a few other benefits you’ll receive when you elect to pick up OEM insurance:

  • More peace of mind knowing that your car is being restored to its factory condition after a stressful collision
  • Technicians repairing your vehicle will be obligated to source OEM parts when they can
  • Original manufacturer parts were designed for the make, model and year your car was built

Get OEM Coverage With American Family

OEM coverage can help you to get what you need to protect your investment. If you’ve got a new car and want to be sure that OEM parts and components will be used whenever possible, be sure to reach out to your American Family Insurance agent and request a quote. You’ll find OEM protection can be within reach, and you'll feel great with the knowledge that your car will be rebuilt with original parts — that were designed specifically for your car.

New to American Family? See why you should choose us as your car insurance provider and get a quote. We offer ways to customize your auto coverage and protect what matters to you.