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What Is OEM Coverage and Why Is It Important?

When you take your car into the shop after an auto accident, you’ve probably got a lot on your mind. With your car out of commission for a number of days, auto collisions can be challenging enough. By selecting the right insurance company to cover your vehicle, you can find Original Equipment Manufacturers (OEM) coverage that does what it can to repair your car with original parts when they’re available.

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 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 is added protection that helps to ensure that your car will be rebuilt with original factory equipment when possible. With it, you’ll have the coverage you need to get your vehicle repaired according to your needs.

There’s a lot to learn about additional OEM insurance for your car. Let’s walk through why added OEM auto coverage makes sense.

Does Insurance Cover OEM Auto Parts?

Getting your coverage right before you sign with an auto insurance provider is key. Most base auto policies don’t specifically require auto repairs to use ODM 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 — help to ensure it’s being rebuilt according to your requirements.

You're best to purchase OEM coverage separately because additional protection like this may or may not be included in your auto policy. Getting OEM parts installed can depend on a number of factors:

  • OEM coverage is only available for vehicles that are under seven years old.
  • Your repair shop can elect to use OEM parts, but without this coverage they can use other aftermarket products as well.
  • Repair shops may defer to using OEM parts when aftermarket options aren’t available — but with this coverage, OEM products will be used whenever possible.

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

OEM parts are a great idea because they’re made by your car’s manufacturer. As such, they’re designed to operate specifically for your car. If you prefer to have original manufacturer parts and products used when repairs are made, this coverage can require mechanics to install OEM parts whenever possible.

Here’s more good news: opting for OEM vs. aftermarket parts may even help to retain your car’s resale value . This is because used car buyers like to know that when a vehicle was repaired, original parts were used to restore the vehicle. With this protection, used car buyers may be glad that you went that extra mile.


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 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.

  3. As vehicles age, new OEM parts become 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.

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.