OEM Insurance Coverage
What is OEM insurance coverage?
Original equipment manufacturer insurance is commonly abbreviated as OEM insurance. This endorsement to your auto insurance allows you to have new manufacture parts used to repair your vehicle for a covered claim.
Your vehicle is involved in an accident, are you going to want original manufacturer parts to put on the vehicle? Or are you OK with using aftermarket parts?
We know most of our clients are OK with the aftermarket parts. But some are very brand aware and only want original manufacturer parts for their cars.
For example, owners of a BMW, Mercedes and Lexus usually want original parts put back on the vehicle.
The same with Dodge, Jeep and Chrysler owners. They are proud of their MOPAR branded parts as well.
If you want to be sure that the insurance carrier replaces the parts with the original parts and not aftermarket parts, then there is an OEM insurance endorsement you need to purchase on your auto policy.
The Original Parts Replacement commonly referred in the industry as OEM (original equipment manufacturer) is an endorsement that allows you to have original equipment replaced if there is a covered claim.
Not all vehicles qualify for OEM insurance coverage. Most carriers require the following
- You carry both comprehensive and collision coverage on the vehicle
- The coverage is available for an auto, pickup or van. The OEM insurance coverage is not typically available for antique/classic autos, restored autos, motorhomes or trailers
- Vehicle must be 10 years or newer. Vehicle age is measured by the current calendar year minus the vehicle model year. OEM insurance coverage is usually not available after the 10th year. OEM coverage is usually automatically removed at the renewal of the policy at this point.
The auto insurance carrier does not want to offer OEM insurance on vehicles older than 10 years. After 10 years, original parts may no longer available for the vehicles. So, the only way that they could repair the vehicle would be to use aftermarket parts or used parts.
Just because the insurance company is using used parts or parts that were manufactured by someone other than the original manufacturer, does not mean that they are not of equal quality.
If it is important to you that the body shop use original parts on the repair, then the only way to ensure that happens is to purchase this additional OEM insurance coverage on your vehicle.
Otherwise, the insurance company will generally use parts that are equal to the parts that were damaged, to make you whole again. If they can obtain similar parts that are manufactured by someone other than the original manufacturer that are less expensive, they have the right to use them unless you have this OEM endorsement on your policy.
Contact Huff Insurance Today!
Call Huff Insurance at 410-647-1111 to see if your vehicle would qualify for this coverage. We can advise you of cost to add this Original Equipment Endorsement to your policy.
