Should I Get an OEM Endorsement for My Car Insurance?

By Bailey & Greer, PLLC | February 16, 2023

Should I Get an OEM Endorsement for My Car Insurance?After an auto accident, some parts of your vehicle may need to be replaced. While car insurance typically helps take care of these expenses, you may be surprised to learn that these parts are normally not from the vehicle’s original manufacturer. These parts will be obtained from other companies.

Some individuals prefer to not have these parts replaced with just any materials, though. Original equipment manufacturer, or OEM, parts are vehicle components that are added by the vehicle’s original manufacturer. They are designed as required by the manufacturer.

What is OEM insurance?

OEM insurance, often known as OEM endorsement, is an optional, additional form of coverage that can be added to your car insurance policy. This makes it obligatory for repair shops to add only original factory equipment to your vehicle’s parts after they have been damaged in an accident or due to a recall. With OEM insurance, you are guaranteed that you’re going to drive off in a vehicle that contains only original parts. With OEM coverage, the age of your vehicle is never a deciding factor.

Why would OEM be important?

One issue with OEM insurance is that not everyone may find it affordable. It is optional coverage, after all. Some may be content with having other parts to replace the damaged ones. However, purchasing OEM coverage can be important for several reasons. First, you are guaranteed that your vehicle will be replaced with high-quality and tested parts. These parts are tested for their safety and durability, so they are specifically made for your car.

There are several things to consider when deciding if to purchase OEM coverage. If you are someone who drives a lot and uses your vehicle for long trips, replacing damaged parts with OEM ones may be of benefit to you. You don’t want your car breaking down because of faulty products in the middle of nowhere. If your car is relatively new, replacing these with OEM parts will ensure that your car is practically restored to factory condition. After a stressful collision, this can provide much peace of mind for you. Also, even if your parts need to be imported from a different country, the technicians need to obtain them.

If you did not have this form of coverage prior and you’d like to get OEM parts after an accident, it will cost you much more. Vehicle parts are very expensive, especially if they are coming straight from the manufacturer and are made precisely for your car. As a plus, your car will look the same way it did before the car accident took place. If this is also important for you, then purchasing OEM insurance may be something you’ll want to consider.

Could my car insurance already include this?

As OEM coverage is not required by the state of Arkansas, it is not standard practice for insurance companies to include them in their policies. It will need to be purchased separately. And if you have a brand new car, it might be worth purchasing because minimum insurance requirements likely won’t be enough to cover the damage OR severe injuries.

What your standard auto insurance does cover is:

  1. $25,000 per person for bodily injury
  2. $50,000 per accident
  3. $25,000 to cover property damage to other’s property

You can always buy more, but those are the minimums.

You’ll also be offered a chance to purchase uninsured/underinsured (UM/UIM) coverage (in the event you get hit by a driver who doesn’t have enough insurance) and personal injury protection, or PIP, which covers a certain level of wage loss, medical coverage, and death benefits. You can waive these coverages, but you shouldn’t.

You can also purchase collision coverage, which can help with car repairs – but the truth is that most people drop their collision once they own the car outright.

What about aftermarket parts?

So what parts are they replaced with if not OEM parts? They’re known as aftermarket parts. These are recycled from salvage yards and reconditioned before they’re sent out to replace damaged parts. Regarding the performance of the vehicle, aftermarket parts may not be the best. These parts are built generally for every vehicle, so they won’t do anything for performance. Aftermarket parts are considered much lower in quality and do not generally provide a warranty.

After an accident, you might not be sure of what parts your vehicle will be getting. In Arkansas, the vehicle owner has a right to know that aftermarket parts will be used in the repair. The owners are entitled to see the estimates on those parts before they begin working. The owner can also insist on using only OEM parts for their vehicle’s repair, as long as it is covered under its original warranty.

What if I’ve been injured because of an auto product defect?

Many different types of defects can occur with auto products. There can be defective seat backs that collapse backward in crashes, gas tanks that can cause explosions, and tires that can lead to catastrophic accidents. Defective airbags can fail to deploy, seatbelts might not lock when they need to, and many child car seats have been recalled over the years. Once these defects are detected, the companies should recall them. All these common types of defects can result in grave accidents. Whether or not these defects lead to injuries, though, an individual informed of their vehicle part being recalled can still sue.

If you’ve been involved in an auto accident due to an auto product defect, contact an experienced personal injury attorney at Bailey & Greer right away – whether you have OEM insurance or not. If a product was recalled – or needs to be recalled – it’s crucial to immediately begin working on this case to get you the compensation that you deserve. Product defects can lead to dangerous incidents if appropriate action is not taken right away by the manufacturer. If you’re battling another company because of a defect, let one of our attorneys know. Call our office in Little Rock, or complete our contact form to schedule a free consultation.

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Posted in Car Accident