Insurance Term of the Day: OEM Coverage
Insurance Term of the Day: OEM Coverage
Have you ever bought off-brand clothing, or a purse, or shoes? You wanted those name brand, high dollar kicks but instead, you settled for a similar pair, but half the price. After a few wears, you realize you got what you paid for when the material starts to wear easily, making the shoes look much older than they are. Youโre disappointed, kicking yourself for not buying the higher quality pair of shoes. However, thereโs someone else out there who loves shoes that look worn, and for a great price? One manโs trash is another manโs treasure.
If you invested a lot of money into an asset, like your vehicle, you probably want to properly maintain the vehicle to preserve its life. Others may be happy just to have a car, as long as itโs running, its appearance holds very little value.
There is coverage you could add onto your insurance policy that can help maintain the value and condition of your car. Itโs called OEM (Original Equipment Manufacturer) coverage. With this coverage, your insurance company will pay for the replacement parts made from the original manufacturer. If you are ever in an accident and must repair your car, you will get the same parts designed specifically for your car, by the same company as your car. Without OEM coverage, your car would get aftermarket replacement parts. Aftermarket simply means that it was made by a company other than the one that manufactured your car.
If youโre super picky about the parts of your car, OEM coverage is for you. If not, aftermarket parts have their own benefits as well.
Pros of OEM Coverage | Pros of Aftermarket Parts |
Parts are the same brand as your car | The quality is just as good as OEM (sometimes better) |
Often, parts will come with a warranty | Less expensive! |
Helps to maintain the vehicleโs worth | More available |
Keep in mind that OEM coverage may not be available if your car is more than ten years old, as parts become more scarce the older the vehicle.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
Beyond the Funeral: 9 Reasons Why You Need More Life Insurance Than You Think
Life Insurance: Not Just for Buryin’! Unexpected Costs You Never Knew Were Covered
Life Insurance Myths Busted: Unveiling the Simple Truths Behind Financial Security
Considering life insurance but confused by the myths? We clear the air on common misconceptions and show you how to get simple, affordable coverage.
The Farewell Financial: Planning a Peaceful Goodbye
Beyond Goodbyes: A Guide to Navigating Funeral Costs and Life Insurance
Why Life Insurance Matters for Businesses
Death and the Business Owner: How Life Insurance Can Secure Your Legacy
Beyond the Grave: Burial Insurance vs. Life Insurance Explained
Don’t Be Buried by Confusion: Understanding Burial and Life Insurance
From Bronze Age to Boomers: How Life Expectancy Went From Meh to Magnificent
How Long Will You Live? A Look at Life Expectancy Throughout History (and Why You Might Need Life Insurance)
Beyond “My Beloved Spouse”: A Guide to Choosing Your Life Insurance Beneficiary
The Beneficiary Bunch: Understanding Your Options
Life on the Edge? How Your Hobbies Can Affect Your Life Insurance Rates
Beyond the Premium: Unveiling the Unexpected Links Between Hobbies and Life Insurance
Unveiling the Different Players (and Why We’re Your Guide!)
Insurance Companies: Not All Created Equal! Find Your Perfect Match with Our Help
Cracking the Code: Cash Value, Loan Value, Surrender Value – It’s All in the Life Insurance Policy!
Beyond the Death Benefit: Unlocking the Hidden Gems of Your Life Insurance Policy