OEM vs. Aftermarket Parts: What Will Car Insurance Pay For? 

After an accident or other covered loss, the parts used to repair your vehicle can affect cost, fit, availability, warranties, and what you pay out of pocket. 

Having auto insurance that covers damage to your vehicle doesn’t necessarily mean your insurer will automatically pay for original equipment manufacturer (OEM) parts. What an insurer pays for depends on your policy, the claim, applicable state requirements, and available replacement parts. 

Understanding the difference between OEM and aftermarket parts can help you know what to expect before repairs begin. 

OEM vs. Aftermarket Parts: What’s the Difference? 

OEM parts are made by the vehicle manufacturer and are designed to match the specifications of the original component. 

Aftermarket parts are made by third-party manufacturers. They’re designed to replace original components, but their materials, design, price, warranty, and quality can vary. 

You may also encounter recycled OEM parts. These are original manufacturer parts removed from another vehicle and reused. 

OEM Parts: Benefits and Considerations 

Some drivers prefer OEM parts because they’re designed specifically for their vehicle’s make and model. 

Potential benefits include: 

• Compatibility with the vehicle’s original specifications 

• Consistency with the original components 

• Manufacturer-backed warranties when applicable 

OEM parts may cost more than aftermarket alternatives, and availability can vary. 

Drivers with newer, leased, luxury, specialty, or technologically complex vehicles may have additional reasons to ask about OEM parts. However, whether insurance pays for them depends on the policy and claim. 

Aftermarket Parts: Benefits and Considerations 

Aftermarket parts can provide more choices because multiple manufacturers may produce replacements for the same component. 

Potential benefits include: 

• More product choices 

• Competitive pricing 

• Wider availability for some components 

• Different warranty options 

Quality and fit can vary among aftermarket manufacturers. Before choosing a part, ask the repair shop who manufactured it, whether it has a warranty, and how it compares with the OEM option. 

Cost, Quality, Fit, and Warranties 

Several factors can influence the choice between OEM and aftermarket parts. 

Cost 

OEM parts may cost more than comparable aftermarket parts, although the difference depends on the vehicle, component, supplier, and availability. 

If an insurer approves an aftermarket part, but you request a more expensive OEM part, you may be responsible for some or all of the difference. 

Quality and Fit 

OEM parts are designed according to the vehicle manufacturer’s specifications. Aftermarket quality and fit can vary by manufacturer. 

A reputable repair shop can explain the available options and whether a particular aftermarket part is appropriate for the repair. 

Warranties 

Warranty coverage can also differ. An OEM part may carry a manufacturer’s warranty, while aftermarket manufacturers may offer their own warranty terms. 

Using an aftermarket part doesn’t automatically void a vehicle’s entire factory warranty. However, warranty coverage for a particular problem may depend on whether an aftermarket part caused the damage. 

How Insurance Companies Decide Which Replacement Parts to Pay For 

Insurance companies determine repair payments based on the policy, claim circumstances, applicable state requirements, repair estimates, and available parts. 

Depending on the situation, an estimate may include: 

• New OEM parts 

• New aftermarket parts 

• Recycled OEM parts 

• Other replacement parts permitted under the policy and applicable rules 

State requirements and policy terms can vary. Coverage for damage to your vehicle doesn’t automatically mean the insurer will pay for new OEM replacement parts. 

Does Collision Insurance Pay for OEM Parts? 

Collision coverage can help pay to repair your vehicle after a covered collision, subject to your deductible and policy terms. 

However, collision coverage doesn’t necessarily determine which replacement parts an insurer will pay for. Your policy may allow the repair estimate to include aftermarket, recycled, or other eligible parts. 

Understanding how collision car insurance works can help you distinguish between coverage for the damage and how the vehicle may be repaired. 

Does Comprehensive Insurance Pay for OEM Parts? 

Comprehensive coverage helps cover vehicle damage from certain events other than collisions, such as theft, vandalism, falling objects, and some weather-related damage. 

As with collision coverage, comprehensive insurance doesn’t automatically mean the insurer will pay for OEM replacement parts. The approved parts depend on the policy, repair needs, availability, and applicable requirements. 

Does Full Coverage Mean You Get OEM Parts? 

No. “Full coverage” commonly refers to a policy that combines liability, collision, and comprehensive coverage. It doesn’t mean every loss or repair expense is covered, nor does it automatically require OEM parts. 

If you’re comparing liability and full coverage, remember that the specific terms of collision and comprehensive claims still depend on the policy. 

How Vehicle Age Can Affect the Parts Used 

A vehicle’s age, condition, value, and available replacement parts may affect the repair process. 

For older vehicles, repair costs can become particularly important in relation to actual cash value (ACV), which is the vehicle’s estimated value immediately before the loss. If repair costs become too high compared with the vehicle’s value, the insurer may determine that it’s a total loss according to applicable state rules and claim procedures. 

Freeway’s auto insurance glossary explains ACV, deductibles, and other common insurance terms. 

What If You Want OEM Parts but Insurance Only Pays for Aftermarket Parts? 

If your insurer’s estimate includes an aftermarket part and you prefer OEM, ask about your options before repairs begin. 

Depending on the policy and repair, you may be able to request the OEM part and pay the additional cost yourself. 

Before agreeing to pay more: 

• Ask which type of part the insurer approved. 

• Get the price of the OEM alternative. 

• Confirm your out-of-pocket cost. 

• Get the agreed-upon repair and costs in writing. 

• Ask about warranties on parts and labor. 

You can also ask the repair shop about any fit, availability, calibration, or repair-procedure concerns associated with the available parts. 

Can You Add OEM Parts Coverage to Your Policy? 

Some insurers may offer optional coverage or endorsements for OEM replacement parts. Availability, eligibility, restrictions, and terminology vary by insurer and state. 

If OEM parts are important to you, ask about available coverage when purchasing or renewing your policy. Review any endorsement carefully for vehicle, part, or other eligibility requirements. 

What About Leased or Financed Vehicles? 

If you lease or finance your vehicle, review your lease or loan agreement in addition to your insurance policy. 

The agreement may contain requirements related to repairs or replacement parts. If a lender or leasing company requires a particular repair method or part and your insurance doesn’t cover the full cost, you could be responsible for the difference. 

Do Aftermarket Parts Void Your Vehicle Warranty? 

Using an aftermarket part doesn’t automatically void your entire factory warranty. 

Federal warranty rules generally restrict manufacturers from conditioning warranty coverage on the use of a specific branded part or service unless certain exceptions apply. However, a manufacturer may deny warranty coverage for damage caused by a defective aftermarket component or improper installation. 

Review your vehicle’s warranty terms if you have concerns about a particular repair. 

How to Review a Repair Estimate 

Before approving repairs, ask the shop to identify the replacement parts included in the estimate. 

Descriptions may indicate whether a component is: 

• New OEM 

• New aftermarket 

• Recycled or used OEM 

• Reconditioned or remanufactured 

Ask the shop or insurer about unfamiliar terminology. You should also review your deductible, the approved repair amount, and any additional amount you’ve agreed to pay for preferred parts. 

Working With Your Repair Shop and Insurance Company 

Clear communication can help you understand your options before repairs begin. 

• Review the insurer’s estimate. 

• Ask which replacement parts are included. 

• Tell the shop and insurer if you prefer OEM parts. 

• Ask about warranties on parts and labor. 

• Confirm any additional costs you’ll be responsible for. 

• Keep copies of estimates, invoices, and repair records. 

If additional damage is discovered during repairs, ask how changes to the estimate could affect the parts being used and your out-of-pocket costs. 

Choosing Auto Insurance With Parts Coverage in Mind 

If you have strong preferences about the parts used to repair your vehicle, consider them when shopping for coverage. 

Ask whether a policy allows aftermarket or recycled parts, whether an OEM endorsement is available, and what restrictions apply. Auto insurance policies vary by insurer and state, so review the policy rather than assuming collision or comprehensive coverage automatically includes OEM parts. 

Find Auto Insurance That Fits Your Needs 

Collision and comprehensive coverage can help pay for covered vehicle damage, but they don’t automatically guarantee OEM replacement parts. Your policy, available parts, state requirements, and repair circumstances can affect what an insurer pays for. 

Freeway Insurance can help you compare your auto insurance options. Give us a call at 800-777-5620, stop by one of our offices near you, or start a quick quote online. 

Frequently Asked Questions About OEM and Aftermarket Parts 

Are OEM Parts Always Better Than Aftermarket Parts? 

Not necessarily. OEM parts are designed according to the vehicle manufacturer’s specifications, while aftermarket parts come from third-party manufacturers and can vary in quality, price, fit, and warranty. 

The appropriate option depends on the part, vehicle, repair, policy terms, and available alternatives. 

Will Insurance Pay for OEM Parts on a New Car? 

It depends on the policy, insurer, state requirements, and circumstances of the repair. A newer vehicle doesn’t automatically guarantee payment for OEM parts. 

Check your policy or ask your insurer whether OEM parts are covered or an optional endorsement is available. 

Can I Pay the Difference for OEM Parts? 

Depending on the claim and repair shop, you may be able to choose an OEM part and pay the difference between its cost and the amount the insurer approved for another eligible replacement. 

Confirm the arrangement before authorizing repairs. 

Are Recycled OEM Parts the Same as Aftermarket Parts? 

No. A recycled OEM part was originally made by or for the vehicle manufacturer and later removed from another vehicle for reuse. 

An aftermarket part is manufactured by a third-party company as a replacement for an original component. 

Can I Add OEM Coverage After an Accident? 

Adding or changing coverage generally applies to future covered losses, not damage that occurred before the coverage took effect. If OEM parts matter to you, review available options before you need to file a claim.