OEM Parts Coverage Explained

Last Updated on September 27, 2026 by James Shaffer

When selecting a car insurance policy, you may be offered several types of add-on coverage. One option is OEM parts coverage, sometimes offered as an endorsement or included in a broader coverage package.

OEM parts coverage generally helps pay for original equipment manufacturer parts when your vehicle is repaired after a covered loss. Without this coverage, an insurer may be permitted to base a repair estimate on qualifying non-OEM or other replacement parts, depending on the policy, the type of repair, and applicable New York insurance rules.

What Are OEM Parts?

OEM stands for Original Equipment Manufacturer. In the context of auto repairs, an OEM replacement part is made by or for the manufacturer of your vehicle and is designed for that manufacturer’s specifications.

An aftermarket part is produced by a company other than the vehicle manufacturer. Aftermarket replacement crash parts should not be confused with custom parts and equipment, which are accessories or modifications added to a vehicle rather than ordinary replacement parts used to restore it after damage.

Are OEM Parts Better Than Aftermarket Parts?

It is too broad to say that OEM parts are always better than aftermarket parts. OEM parts have the advantage of being produced to the vehicle manufacturer’s specifications, which can make them appealing to drivers who want repairs completed as closely as possible to the vehicle’s original configuration.

However, New York places specific requirements on non-OEM crash parts when an insurer specifies them. Under New York Department of Financial Services guidance on Regulation 64, qualifying non-OEM crash parts must meet requirements involving fit, form, finish, quality, performance, certification, and warranties.

Part Type	What It Means	What to Consider
OEM	Made by or for the vehicle manufacturer for its vehicles	May offer the closest match to the vehicle’s original specifications, but can cost more or have limited availability
Aftermarket	Made by a company other than the vehicle manufacturer	Quality varies by manufacturer; insurer-specified non-OEM crash parts in New York are subject to Regulation 64 requirements
Recycled OEM	An original manufacturer part removed from another vehicle	May be considered during some repairs depending on the policy, estimate, availability, and condition of the part

How Does OEM Parts Coverage Work?

OEM parts coverage is generally an optional policy provision that changes how eligible replacement parts are handled when the insurer is paying for repairs after a covered loss. Depending on the insurer and endorsement, it may require eligible damaged components to be replaced with OEM parts rather than comparable aftermarket parts.

Exactly what qualifies can vary substantially. Some endorsements may be limited to vehicles below a certain age, may apply only when new OEM parts are reasonably available, or may exclude certain categories of parts. Others may address what happens when an OEM component is discontinued or cannot be obtained.

Does New York Require OEM Parts for Insurance Repairs?

New York does not have a blanket rule requiring an insurer to use new OEM parts for every covered auto repair. Instead, New York’s insurance regulations establish requirements that apply when insurers specify non-OEM crash parts.

According to the New York Department of Financial Services, Regulation 64 requires insurer-specified non-OEM crash parts to meet standards related to fit, form, finish, quality, and performance. Non-OEM parts also must satisfy applicable certification and warranty requirements. If required warranties are not honored, the regulation places additional obligations on the insurer to restore the vehicle to its pre-loss condition consistent with those warranty requirements.

This distinction is important: not having an OEM endorsement does not mean an insurer can simply specify any replacement part regardless of quality. New York’s rules still apply to insurer-specified non-OEM crash parts.

Can You Choose the Repair Shop?

Yes. New York drivers retain the right to choose the repair facility that works on their damaged vehicle. The New York Department of Financial Services Auto Insurance Resource Center explains that an insurer may identify a repair shop that can complete repairs for its estimated amount in certain circumstances, but you retain the right to choose your repairer.

The repair shop also has disclosure obligations. The New York DMV’s Auto Repair Bill of Rights states that a requested written estimate must list necessary parts and indicate parts that are used or not of original equipment quality.

Do You Need Collision and Comprehensive Coverage First?

An OEM parts endorsement generally matters when your own policy is paying to repair physical damage to your vehicle. That means it is commonly associated with collision coverage and comprehensive coverage.

A basic liability policy generally does not pay to repair your own vehicle after an at-fault collision, so adding an OEM repair provision to liability-only coverage would not provide the same benefit. Insurer rules differ, however, so check which types of car insurance are required before an OEM endorsement can be added.

What Does OEM Parts Coverage Not Necessarily Cover?

OEM parts coverage should not be treated as a promise that every component used in every repair will always be a brand-new OEM part. Depending on the endorsement, limitations can involve:

• The age or model year of the insured vehicle
• Whether a new OEM part is available
• Which types of components qualify under the endorsement
• Repairs unrelated to a covered insurance loss
• Normal maintenance, wear and tear, or mechanical breakdown
• Deductibles and other policy provisions that still apply to the claim

Your deductible also does not normally disappear simply because OEM coverage applies. If a covered collision claim is subject to a deductible, for example, you would generally still be responsible for that deductible unless another policy provision says otherwise.

What If You Want OEM Parts Without OEM Coverage?

You can discuss your preference for OEM parts with the repair shop and insurer even if your policy does not include an OEM endorsement. However, the amount your insurer owes is governed by the policy and New York claims-settlement rules.

If the insurer’s covered repair amount is based on a qualifying alternative part and you specifically choose a more expensive OEM part, you may be responsible for some or all of the additional cost unless the insurer agrees that the OEM part is necessary under the circumstances. Discuss the estimate with the insurer and repair facility before authorizing the work rather than assuming the additional amount will be reimbursed.

Do You Need OEM Parts Coverage?

OEM parts coverage is optional, and whether it provides enough value depends on your vehicle and preferences. It may be worth considering if you strongly prefer repairs using manufacturer-specified replacement parts or own a newer vehicle for which maintaining the original configuration is particularly important to you.

Before adding the endorsement, compare its price with the actual benefits and restrictions. Consider:

• Your vehicle’s age and value
• How strongly you prefer OEM replacement parts
• Whether the insurer imposes an age or eligibility limit
• Whether new and recycled OEM parts are treated differently
• What the policy does when an OEM part is unavailable
• The additional premium for the endorsement

If your vehicle is damaged, knowing these details in advance can make the process of getting repairs through your auto insurer easier.

How Much Does OEM Parts Coverage Cost?

There is no reliable single price for OEM parts coverage. Pricing depends on the insurer, vehicle, policy, location, eligibility rules, and other rating factors. Some insurers may not offer the coverage for every vehicle.

When comparing policies, request quotes with and without the OEM endorsement so you can see its actual effect on your premium. Compare the entire policy rather than focusing only on the price of one add-on. Different insurers can calculate premiums differently, so our car insurance calculator can also help you understand the factors that influence insurance costs before you shop.

What Should You Ask Before Buying OEM Coverage?

Before adding OEM coverage, ask the insurer or agent for answers to a few specific questions:

• Is my vehicle eligible based on its age and model?
• Does the endorsement require new OEM parts or can recycled OEM parts be used?
• What happens if the required OEM part has been discontinued or is unavailable?
• Are any types of parts specifically excluded?
• Does the endorsement apply to both collision and comprehensive claims?
• How much does adding the endorsement change my premium?

The answers should come from the policy or endorsement itself whenever possible. That gives you a clearer picture of what you are paying for than relying on a general description of “OEM coverage.”

FAQs on OEM Parts Coverage