OEM parts endorsements: guaranteeing factory parts

An OEM parts endorsement is an optional add-on that requires your insurer to pay for new parts from your car's manufacturer when it repairs covered damage, instead of cheaper aftermarket, used or reconditioned parts. Without it, most policies promise only parts of "like kind and quality," which gives the insurer room to write estimates with non-OEM parts. The endorsement is usually limited to newer cars, applies only to claims under your own policy, and still has exceptions when factory parts are unavailable.

What your policy promises without the endorsement

A standard auto policy pays to repair your car with parts that restore it to its pre-loss condition, and most policy forms let the insurer choose among several kinds of parts:

• OEM parts: new parts made by or for the vehicle manufacturer.
• Aftermarket parts: new parts made by another company to fit your car.
• Recycled parts: used OEM parts taken from another vehicle, often called LKQ (like kind and quality).
• Reconditioned or remanufactured parts: used OEM parts that have been repaired, such as straightened wheels or refinished bumpers.

Regulators set floors on non-OEM parts rather than banning them. The NAIC's Unfair Property/Casualty Claims Settlement Practices Model Regulation says insurers may not require replacement crash parts unless they are at least equal to the original in "fit, quality and performance," and that such parts must carry identification of their manufacturer. California's claims regulations (10 CCR 2695.8(g)) similarly require non-OEM parts to be at least equal to OEM parts in kind, quality, safety, fit and performance. Those rules are minimums. They do not entitle you to factory parts.

What the endorsement changes

With an OEM endorsement, the insurer agrees to write the estimate with new manufacturer parts for covered repairs. Liberty Mutual sells this as Original Parts Replacement. As of October 2026, its site says the coverage is generally available for private passenger vehicles that are 10 years old or newer and carry both comprehensive and collision coverage, and that when OEM parts are not available "because they're not built anymore, not distributed, or for other reasons," estimates may include a new non-OEM part or a reconditioned OEM part (Liberty Mutual).

Other insurers offer similar endorsements under different names, and some do not offer one at all. Availability also varies by state. If you are shopping, ask each insurer three questions: is an OEM endorsement available for this car, what is the vehicle-age cutoff, and what happens when a factory part is back-ordered or discontinued.

What it does not do

The endorsement is narrower than its name suggests:

• It only applies to your own coverage. It works on collision and comprehensive claims you file with your insurer. If another driver hits you and you file a third-party claim with their insurer, your endorsement does not bind them. You can still file under your own collision coverage, pay your deductible, and let your insurer pursue the other driver.
• It does not cover wear or mechanical failure. It changes how covered damage is repaired; it does not turn the policy into a warranty.
• It does not pay for upgrades. Parts you added after purchase fall under custom parts and equipment coverage, not an OEM endorsement.
• It may not cover glass. Windshields and other glass are often handled through a separate glass program, and the endorsement's wording may or may not reach them. Ask.
• It does not guarantee a particular shop or repair method. Repair procedures and calibration of sensors are separate issues; see driver-assistance sensors and the cost of repairs.

State laws that already require OEM parts

A few states go further than the NAIC model. Rhode Island is the clearest example. Under R.I. Gen. Laws § 27-10.2-2, an insurer may not require aftermarket parts on a car less than 48 months past its date of manufacture unless the owner gives written consent, and for cars between 48 and 72 months old an insurer may not refuse OEM parts if the owner consents to them in writing (the section was most recently amended in 2024, effective October 1, 2024). Shops must also tell owners of cars under 48 months that they can require OEM parts.

Many other states require insurers to identify non-OEM parts in the estimate or to disclose their use in writing. These rules change and differ in detail, so check with your state's insurance department or the state car insurance requirements lookup before assuming what applies to you.

Disputes over parts have a long history. In Avery v. State Farm, an Illinois class action over non-OEM parts produced a verdict of roughly $1.2 billion in 1999, which the Illinois Supreme Court reversed in August 2005. The case is one reason insurers write their parts language carefully.

When the endorsement is worth it

The endorsement tends to pay off in these situations:

1. Newer cars. Aftermarket body parts are most common for popular models a few years old. On a car within the eligibility window, the endorsement removes the debate.
2. Leased cars. Lease contracts may require factory parts or penalize non-OEM repairs at turn-in. Read your lease.
3. Cars with sensors in bumpers, grilles and mirrors. Fit and material differences can matter where radar and cameras are mounted.
4. Owners who plan to keep the car a long time and care about fit and finish.

It is less useful on older cars near the age cutoff, on cars you would sell soon after a repair, or if you already live in a state that limits non-OEM parts on newer vehicles. Weigh the added premium against what you would realistically argue about after a claim.

How to use it at claim time

1. Tell the adjuster or appraiser at the start that you carry the OEM endorsement.
2. Read the estimate line by line. Parts are usually coded as OEM, aftermarket (often "A/M"), recycled or reconditioned.
3. If a non-OEM part appears, ask the insurer to explain why in writing, citing the endorsement's exception.
4. If your repair shop finds more damage, make sure the supplement also uses OEM parts.
5. Keep the final invoice showing the parts actually installed.

For the broader question of whether aftermarket parts are a problem at all, see Aftermarket vs OEM parts in insurance repairs. For your right to pick the shop that does the work, see choosing a repair shop: direct repair programs and your rights.

Key takeaways

• Without an endorsement, most policies allow aftermarket, recycled or reconditioned parts as long as they meet a "like kind and quality" standard.
• An OEM endorsement makes factory parts the default for covered repairs under your own policy, usually only for newer cars with comprehensive and collision.
• Liberty Mutual's version is limited to vehicles 10 years old or newer and allows exceptions when OEM parts are unavailable.
• It does not bind the other driver's insurer; file under your own collision coverage if parts matter to you.
• Rhode Island already requires owner consent before aftermarket parts go on cars under 48 months old; check your own state's rules.