OEM vs Aftermarket Auto Parts: What Does Your Insurance Use?

After an accident, your insurer will repair or replace damaged parts. But which parts do they use — and does it matter? The answer affects your car's value, safety, and future resale price.

OEM Parts Explained

OEM (Original Equipment Manufacturer) parts are made by the same company that manufactured the parts for your car originally. If you drive a Toyota, OEM parts are made by Toyota or their approved suppliers.

OEM parts:

• Match your car's exact specifications
• Fit perfectly without modification
• Often come with a warranty
• Are more expensive (20–100% more than aftermarket)

Aftermarket Parts Explained

Aftermarket parts are made by third-party manufacturers — not the original car maker. They're designed to fit your vehicle but may vary in quality.

Aftermarket parts:

• Are typically cheaper than OEM
• Can vary widely in quality (from excellent to poor)
• May not fit perfectly without adjustment
• Are the default for most insurance claims

OEM vs Aftermarket: Side-by-Side

Feature	OEM	Aftermarket
Made by	Original car manufacturer	Third-party companies
Fit	Exact match	Good to poor (varies)
Quality	Consistent	Varies by brand
Cost	20–100% more	Cheaper
Warranty	Manufacturer warranty	Varies by brand
Default for insurance?	Rarely	Yes, in most states
Impact on resale	Neutral	May lower value

What Does Your Insurance Cover?

Most standard policies use this default:

• Liability-only policies: Don't pay for your car's repairs at all
• Collision/Comprehensive: Typically specify aftermarket or "like kind and quality" parts
• OEM coverage: Available as an add-on from some insurers, or required by state law for newer vehicles

States That Require OEM Parts

Several states have laws protecting your right to OEM parts:

• California: OEM required for vehicles under 2 years old / 30,000 miles (under certain conditions)
• Florida: OEM required for vehicles under 2 years old
• Texas: OEM required for vehicles under 2 years old
• Illinois, Minnesota, Wisconsin: Various OEM protections for newer vehicles

Check your state's specific rules — they vary significantly.

How to Get OEM Parts Covered

If you want OEM parts on your policy:

• Ask your insurer about OEM coverage endorsement. Typical cost: $50–$200/year.
• Check your state laws — if your car qualifies, you may already be entitled to OEM parts.
• Read your policy language carefully. Some policies say "like kind and quality" — which often means aftermarket.
• Choose a repair shop that uses OEM parts (dealer body shops or certified repair networks).

When Aftermarket Is Fine

Aftermarket parts make sense if:

• Your car is older (5+ years) and you want to save money
• You choose high-quality aftermarket brands (with good reviews and warranties)
• The parts are non-structural (bumpers, trim, mirrors)
• You're paying out of pocket and want the cheapest option

When OEM Is Worth It

Insist on OEM parts if:

• Your car is new or nearly new (under 3 years)
• The parts are structural or safety-related (airbags, frame components)
• You plan to sell or trade in the car soon (OEM parts protect resale value)
• You drive a luxury or performance vehicle

The Bottom Line

For most drivers with newer cars, OEM coverage is worth the $50–$200/year cost. It ensures your car is repaired to factory specifications, protects its resale value, and gives you peace of mind. For older cars, quality aftermarket parts are usually fine — just research brands first.

Frequently Asked Questions