Last Updated on October 10, 2026
Written by licensed insurance agent Andy walker
Reviewed by the Alias Insurance editorial team.
Car insurance may pay for original equipment manufacturer parts after an accident, but standard coverage does not always guarantee them. The answer depends on your policy language, the coverage paying the claim, your vehicle’s age and condition, state law, part availability, and whether a factory part is needed for a safe repair. An optional OEM parts endorsement can provide stronger protection, subject to its limits and exclusions.
Collision coverage usually pays for covered accident damage to your own car, less your deductible. Coverage for theft, vandalism, weather, falling objects, and animal contact may pay for other covered physical damage. Neither coverage name alone tells you which parts the insurer will approve. Many policies let the company base its estimate on new aftermarket, recycled original, or reconditioned parts that are considered similar in kind and quality.
You may still choose a new factory part. If the insurer approves only a lower cost part, you might have to pay the price difference unless your policy, state law, or documented repair need requires the OEM part. Ask the adjuster for the written estimate and the exact policy clause used for every disputed part.
The most useful answer is simple:
| Situation | Is an OEM part likely to be paid? |
| Your policy has OEM parts coverage | Often yes, within the endorsement’s rules |
| State law requires an OEM part in your case | Yes, if all legal conditions apply |
| The maker’s repair procedure requires it | Possibly, with strong written support from the shop |
| A suitable non OEM part is allowed by the policy | Not always |
| You prefer OEM for appearance or resale value | You may need to pay the difference |
| The factory part is unavailable | The insurer and shop may need another approved repair plan |
What Are OEM Parts?
OEM parts are made by or for the company that built your vehicle. A new OEM fender for a Honda, for example, comes through Honda’s parts system and is designed for the named model and model year.
Repair estimates may list several other part types:
| Part type | What it means | Common claim issue |
| New OEM | A new part supplied through the vehicle maker | Often costs more than another available option |
| New aftermarket | A new part made by a company other than the vehicle maker | Fit, finish, certification, and policy terms may be disputed |
| Recycled original | A used factory part removed from another vehicle | Age, prior damage, mileage, and condition matter |
| Reconditioned | A used part restored for reuse | Quality and warranty terms should be checked |
| Remanufactured | A part rebuilt to a stated standard, often for mechanical use | The maker, process, and warranty can differ |
The label alone does not decide whether a part is safe for a specific repair. The shop should check the current maker procedure, part number, fit, sensor needs, calibration steps, and any limits on reuse. State rules may define crash parts narrowly, so one rule may not cover every item on an estimate.
When Will Car Insurance Pay for OEM Parts?
An insurer is more likely to pay for new factory parts under one or more of these conditions.
Your policy includes an OEM parts endorsement
An OEM endorsement adds contract language about factory parts. It usually costs extra and may be limited to vehicles below a stated age. Some forms apply only while OEM parts are available. Others may exclude tires, batteries, glass, fluids, or parts the vehicle maker no longer sells.
Read the endorsement itself, not just a sales page or verbal summary. Check:
- The maximum eligible vehicle age
- Which part classes qualify
- What happens when a factory part is delayed or discontinued
- Whether recycled factory parts qualify
Some insurers market original parts replacement as optional protection. Availability differs by company, state, vehicle, and policy form. A quote that includes the option can therefore differ from a quote that omits it.
State law gives you added protection
Insurance repair rules vary by state. Some states require disclosure before non OEM crash parts are used. Some set standards for quality, identification, warranties, consent, or newer vehicles. Few drivers have an automatic nationwide right to new factory parts in every claim.
Examples show why location matters:
| State example | What the official guidance or rule says |
| California | An insurer cannot require a non OEM replacement crash part unless it is at least equal in kind, quality, safety, fit, and performance. The rule also includes estimate disclosure and insurer warranty duties. |
| Massachusetts | State claim guidance says that for non safety parts, the insurer does not have to pay for OEM parts unless the claim occurs within the vehicle’s first 20,000 miles. |
| Minnesota | State law protects shop choice and bars an insurer from specifying a particular parts vendor. It also says the insurer need not pay above a reasonable market price for parts of like kind and quality. |
| Michigan | State law sets definitions and conditions for using non OEM aftermarket crash parts when an insurer requests them. |
| New Hampshire | The state insurance department says insurers must use OEM parts for parts and vehicles that meet the conditions in RSA 407 D:3 a. |
These are examples, not a fifty state legal survey. Rules change, definitions differ, and a claim may fall outside a rule. Confirm current requirements with your state insurance department or a licensed insurance professional.
The OEM part is necessary for the documented repair
A shop may find that the vehicle maker’s procedure calls for a specific factory part, fastener, adhesive, scan, or calibration. That evidence matters most when the part affects a camera, radar unit, restraint system, structural joint, lighting system, windshield, or bumper area.
I CAR advises repairers to review maker position statements along with repair information. Those records may explain what a maker allows, forbids, or requires. A general preference for factory parts is less persuasive than a repair procedure tied to your vehicle identification number and damaged area.
Ask the shop to send the adjuster the relevant maker procedure, part number, price quote, damage photos, calibration needs, and a written reason the proposed alternative will not support the repair.
The insurer may approve a supplement after it reviews added damage or repair records. Approval is never certain, but specific evidence gives the adjuster a clear basis for reconsideration.
Which Coverage Pays for Parts After an Accident?
The coverage paying the loss affects the claim process, but it does not create an automatic OEM promise.
A collision claim under your own policy
Collision coverage can pay for damage from hitting another car or object, or from a rollover, subject to the contract. Your deductible normally applies. The insurer writes an estimate based on covered damage and its parts rules.
For a clearer review of the coverage itself, read how collision car insurance pays for vehicle damage.
A claim for theft, vandalism, hail, or animal contact
Coverage for physical losses other than a collision can pay for covered damage from events such as theft, hail, vandalism, fire, falling objects, flood, and contact with an animal. Your deductible usually applies unless a state rule or policy provision says otherwise.
The claim can still include aftermarket, recycled, or reconditioned parts. Review the estimate rather than assuming that broad physical damage protection promises OEM parts. The guide to car insurance coverage for repairs explains why cause of loss matters.
A claim against the driver who caused the crash
The other driver’s property damage liability coverage may pay reasonable repair costs if its insured is legally responsible. You usually do not owe a deductible on that claim. Yet the liability insurer may still argue that a non OEM or recycled part restores the car to its prior condition.
Your own OEM endorsement may not control a claim paid by another company. If the liability insurer disputes the part, submit the maker procedure, shop statement, vehicle facts, and state rule. You can also ask your insurer about using collision coverage. You would normally pay your deductible first, and its recovery is not guaranteed.
How Do Deductibles and Price Differences Work?
An OEM endorsement does not usually erase the collision deductible. The deductible is your share of the covered loss. The parts issue decides how the covered repair amount is calculated.
Consider this sample claim:
- The approved repair using allowed parts is $4,800.
- Your collision deductible is $500.
- The insurer’s payment would be $4,300 if all work is covered.
- New factory parts would raise the same repair to $5,650.
- If no contract or legal rule requires those parts, you could owe the $850 upgrade difference plus the $500 deductible.
Tax, labor, paint materials, betterment, prior damage, hidden damage, and state rules can change the payment. Learn how a car insurance deductible affects a repair payment before choosing one based only on premium.
Parts prices also change over time. CCC reported that its data showed average part prices rose more than 4 percent from the prior year in March and April 2025. Higher parts costs can make the difference between two repair plans more noticeable. They can also push a damaged vehicle closer to a total loss decision.
Can the Insurer Force You to Use Aftermarket Parts?
You can usually choose your repair shop, though state law and policy terms govern the claim. You can request factory parts, but the insurer may write its estimate with a permitted lower cost part. If that part does not fit or cannot support a proper repair, the shop should document the issue and request a supplement.
Do not authorize a costly upgrade based only on the hope that the insurer will repay it later. Get a written answer first. Ask whether the company is:
- Approving the OEM part in full
- Paying only the amount of another listed part
- Asking the shop to try the listed part before a supplement
- Denying the part because it is unrelated to the accident
- Treating part of the cost as betterment or an elective upgrade
If you pay a difference, place the amount on the repair authorization. Keep every estimate, supplement, invoice, photo, scan report, and calibration record.
Are OEM Parts Always Better or Safer?
No single answer applies to every part or vehicle. A factory part offers known sourcing and is designed for the named model. A certified aftermarket part may be acceptable under a policy and state rule. A recycled factory part may fit well, but its age and condition need review.
Safety depends on the full repair. The correct part can still perform poorly if the shop misses a scan, calibration, weld, fastener, corrosion step, or installation procedure. The same concern applies if a part is damaged, mislabeled, or not designed for that exact trim and sensor package.
Give added attention to restraints, structural sections, one time use fasteners, cameras, radar sensors, bumpers near sensors, camera supporting windshields, high voltage parts, and lighting modules.
Ask the repairer to identify the maker procedure and confirm required scans and calibrations. A qualified shop should explain why a proposed part and process are right for your exact vehicle.
Will Aftermarket Parts Void the Vehicle Warranty?
An aftermarket part does not automatically cancel an entire factory warranty. Warranty responsibility depends on the terms and whether the part or repair caused the later failure. Before work starts, ask who warrants the part, labor, paint, fit, corrosion protection, and calibration.
If the car is leased, review the lease return standards. If it is financed, keep the lender listed on the claim as required. A lease or loan does not by itself prove that the insurer owes new factory parts, but the contract may affect your repair duties and how a claim check is issued.
What Should You Do Before the Repair Starts?
Use this claim checklist:
- Report the accident and protect the car from more damage.
- Ask for the full estimate with part descriptions and numbers.
- Read the physical damage section and every parts endorsement.
- Confirm your deductible and whether betterment may apply.
- Choose a qualified repair shop and request a full damage inspection.
- Ask the shop to check maker procedures for the damaged area.
- Get written approval before ordering a higher cost factory part.
- Collect final invoices, scans, calibration reports, and warranties.
- Test the vehicle and report fit, warning light, sensor, noise, or paint concerns at once.
Minor visible damage can hide broken brackets, sensor faults, or damage behind a bumper. Do not settle a repair dispute from photos alone if the shop says safe disassembly is needed.
How Can You Dispute an OEM Parts Decision?
Start with a calm written request. Identify the exact part, the estimate line, the amount in dispute, and the reason you believe the factory part is owed. Ask the adjuster to cite the policy language and state rule behind the decision.
Then follow these steps:
- Send the vehicle maker’s repair procedure and the shop’s written explanation.
- Ask for review by a claim supervisor or appraiser.
- Request a supplement if hidden damage or fit problems changed the repair.
- Check whether your policy has an appraisal clause for disputes about the amount of loss.
- Contact your state department of insurance for current rules or complaint options.
- Speak with a licensed insurance professional or qualified attorney if the amount or safety issue justifies the cost.
A state insurance department can review claim handling and explain its rules. It cannot rewrite your contract or guarantee that every disputed factory part will be paid. If the company refuses a covered claim without a clear basis, the guide on what to do after an auto insurance claim denial can help you organize the next steps.
Should You Buy OEM Parts Coverage?
The option may suit a newer car, luxury model, electric vehicle, or car with many driver assistance sensors. It may also suit a driver who does not want to fund a price difference after a loss.
First compare the added premium with the endorsement’s limits. A low cost option has little value if your car is too old to qualify or if key parts are excluded. Ask for a sample endorsement before buying.
Questions to ask include:
- How long will my car qualify?
- Are glass and electronic parts covered?
- Are recycled OEM parts allowed?
- What happens during a factory parts delay?
Compare quotes with the same deductibles, liability limits, physical damage coverage, rental limits, and OEM option. Otherwise, a lower premium may reflect less protection rather than a better rate.
Frequently Asked Questions
You can request OEM parts, but your insurer may not have to pay the full cost. Your policy, state law, vehicle age, repair procedure, and the available alternatives decide what is owed. Get the decision and policy basis in writing.
No. Collision coverage can pay for covered crash damage, less your deductible, but standard collision coverage does not always promise factory parts. Look for an OEM parts endorsement or specific parts language in the policy.
Insurance may pay the full difference if the policy, state law, or documented repair need requires the factory part. If OEM is only your preference, you may have to pay the difference between the approved part and the factory part.
A shop may object if a proposed part does not fit, is damaged, conflicts with maker procedures, or cannot support a proper repair. The shop should document the reason and ask the insurer for a revised estimate or supplement.
Not always. Check the lease or loan agreement for repair standards, but those terms do not automatically change what an auto policy pays. Ask the lender, lessor, repair shop, and insurer for written guidance before approving the repair.
Final Takeaway
Car insurance pays for OEM parts when the policy promises them, a state rule requires them, or the insurer accepts evidence that they are needed for the repair. Standard physical damage coverage may instead pay for a suitable aftermarket, recycled, or reconditioned part. Read the estimate, policy, endorsement, and maker procedure before authorizing work. If factory parts matter to you, compare the OEM option and its limits before a loss. Alias Insurance can help you compare car insurance quotes with consistent coverage details so you can judge price and protection on the same basis.
Sources and References
- California rule on non OEM crash parts
- Massachusetts guidance on auto insurance claims and OEM parts
- Minnesota Statute 72B.092 on motor vehicle insurance adjustments
- Michigan law on non OEM aftermarket crash parts
- New Hampshire repair shop and OEM parts guidance
- I CAR guidance on OEM position statements
- CCC report on parts price changes in 2025
- Federal Trade Commission warranty guidance
