Auto Insurance

OEM Parts

Original Equipment Manufacturer parts — factory-made components used in covered vehicle repairs.

Last reviewed: May 2026 · Editorial methodology

Definition

OEM (Original Equipment Manufacturer) parts are replacement components made by the vehicle's original manufacturer, identical to the parts installed during production. When your car is repaired after a claim, most standard policies allow insurers to use aftermarket, used, or reconditioned parts rather than OEM, which can reduce repair quality and residual value. OEM endorsements — available from carriers like USAA and Chubb — require the insurer to use OEM parts on newer vehicles (typically within the first three to five model years). Expect to pay $30–$75 per year extra for OEM coverage. On vehicles under warranty, OEM repairs help preserve manufacturer warranty terms.

Where this term matters

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Aftermarket PartsNon-OEM replacement parts used in repairs — insurers often default to these to reduce claim costs.Collision CoverageOptional auto coverage that pays to repair your vehicle after a crash, regardless of fault.Diminished Value ClaimA claim for the reduction in a vehicle's resale value even after proper repairs following an accident.EndorsementA written modification to a policy that adds, removes, or changes coverage — same as a rider.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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