OEM Coverage - What is it? Why buy it?

OEM stands for 'original equipment manufacturer'. Buying such a coverage on your auto policy would mean that in the case of damage to your vehicle, the parts replaced will be original factory equipment. Without OEM coverage, most insurance companies will pay for after-market parts. This is not to say that after-market parts are bad. Many are certified and equal in quality and workmanship. However, if you want to know that you will get BMW parts for your Beemer or Ford parts for your Mustang, then you want this coverage. It happens to be relatively inexpensive too.

One important fact is that most companies will only keep the coverage on your policy until your car is 10 years old. The reason for this is that finding OEM parts on vehicles over 10 years old is problematic and the companies do not believe it appropriate to continue the protection if coverage has essentially diminished.