OEM Insurance: Original Equipment Manufacturer Coverage Guide

Original equipment manufacturer (OEM) is generally characterized as a business that manufactures components for other companies, then resells the final products to end customers.

Adding new features and services raises the original item’s perceived value, so the second company is known as a value-added reseller (VAR). Working with the OEM is critical to the VAR’s success since they often customize designs based on the VAR company’s demands and requirements.

Precisely What Is OEM Insurance?

The optional Original Equipment Manufacturer (OEM) insurance coverage requires repair businesses to use only original factory equipment when repairing a vehicle following an accident or a part breakdown.

Drivers who value authenticity and quality beyond all else should consider this option. Even if your car is ancient, no aftermarket parts have been installed. You can contact cheap auto insurance carriers for this insurance.

What Is The Significance Of The OEM?

The high cost of OEM parts necessitates the purchase of OEM insurance. The insurance company should cover us because the expense of purchasing this equipment is prohibitive for most people.

Let’s have a look at an example to illustrate the point better;

• You are involved in an accident and suffer significant damage to your vehicle. You can now choose between installing factory-installed equipment or aftermarket components in your car.
• If you opt to go with original equipment, verify whether or not your auto insurance policy covers the expense. The good news is that you are receiving this coverage. As a result, the original manufacturer’s equipment costs will have to be paid for by you.
• If you don’t wish to pay for these items, then the best thing to do is opt for aftermarket equipment that might perform with similar efficiency.

Does My Auto Insurance Cover Brand-New Original Equipment Manufacturers (OEM) Auto Parts?

New original equipment manufacturer (OEM) auto parts are generally not covered by conventional auto insurance policies. To save money on the insurance claim, they always include aftermarket products. The OEM’s additional protection comes into play in this situation.

What’s The Difference Between OEM Parts & Parts Made By A Third Party?

What we’ve talked about often in this blog is the fundamental difference between OEM and aftermarket parts:

Performance

Original equipment manufacturer (OEM) parts are made to precisely match the specifications of a particular car or truck. Thus, the performance of an automobile can be improved by using OEM parts. While OEM parts are specifically designed for a specific car, aftermarket parts are universally applicable. Therefore, they have no unique function to increase the vehicle’s performance.

In addition to the standard warranty, the following coverage is available:

Because the original manufacturer’s guarantee backs OEM components, you will have two layers of protection. While most aftermarket parts do not come with a warranty, few exceptions exist.

Quality

There’s no denying that aftermarket parts are of poorer quality than original equipment manufacturer (OEM) components.

Selection

It’s a race for the best aftermarket components, and every firm is striving to prove that theirs are the best. As a result, it isn’t easy to figure out which firm to go with while looking for aftermarket parts.

When Is OEM Insurance A Necessity?

OEM insurance isn’t required for everyone, and the state doesn’t need it either. Do we genuinely require OEM coverage, then? The best way to determine this is to look at the following:

1. How Often Do You Drive?

You don’t need OEM insurance if you only use your automobile to get around town and don’t take any other forms of public transit. Because even if an aftermarket product malfunctions and causes your vehicle to break down, you can quickly connect with a nearby garage or repair shop to have it serviced.

However, if you frequently drive your car, OEMs are a must, even on long road trips. Because of an aftermarket product, if your automobile breaks down in the middle of nowhere, it can be risky for you. Consequently, you require top-of-the-line components in your vehicle.

2. Consider The Age Of Your Vehicle

For cars older than seven years, acquiring original parts might be complex, so most auto insurance companies would deny coverage for OEM parts. However, if you own a new automobile, you’ll require OEM parts to keep it in good operating order, and therefore you’ll need OEM coverage car insurance.

3. Affordability

Standard or minimum coverages for OEMs are not available for purchase. Comprehensive or collision car insurance can be supplemented with OEM insurance. You should only add OEM coverage if you have comprehensive or collision insurance.

Conclusion

On the other hand, aftermarket parts have been created by a third-party manufacturer to meet the same design criteria as the original vehicle’s panels and components, according to the Consumer Insurance Guide. As a cost-cutting move, insurance firms often prefer to employ aftermarket components rather than OEM ones, according to automotive enthusiasts. In most cases, you won’t even notice.