StateCover Guide
Glossary

OEM parts

By Editorial team, last reviewed

Quick answer

OEM stands for original equipment manufacturer. OEM parts are replacement parts made by, or for, the company that built your car, matching what the car had when it left the factory. Parts made by other companies are called non-OEM or aftermarket parts.

Why it matters in a claim

When your car is repaired under your policy, the repair estimate lists the parts to be replaced. Whether those parts are OEM or not affects the price of the repair, and it is why some states set quality and fit standards for non-OEM parts.

What your insurer owes depends on the policy wording and your state:

  • Like kind and quality. The Texas Department of Insurance says an insurer must pay for parts of like kind and quality to the damaged ones, but does not have to pay for original manufacturer parts.
  • State safeguards for non-OEM parts. California, for example, lets an insurer require non-OEM crash parts only if they are at least equal to OEM parts in kind, quality, safety, fit and performance, and the insurer pays for any changes needed to make them fit.

Questions to ask

  • Does my policy say anything about OEM parts, or only like kind and quality?
  • Which parts on this estimate are OEM, and which are not?
  • If I want OEM parts, who pays the difference?

Ask these before repairs begin, and raise disagreements with the adjuster in writing.

Sources

Last reviewed by the StateCover Guide editorial team. See our editorial policy. Spotted an error? Tell us.