Are OEM parts covered in repairs?

Complete Guide to OEM Parts Coverage in Powersport Insurance

Why This Question Matters for Colorado and Utah Residents

For Powersport enthusiasts in Colorado and Utah, such as ATV riders, dirt bike users, and snowmobile owners, understanding whether Original Equipment Manufacturer (OEM) parts are covered during repairs is crucial. The varied terrain, ranging from mountainous trails to snowy paths and the frequent exposure to hailstorms, can lead to repairs on your vehicle. Knowing your insurance policy's stance on OEM parts can mean the difference between high out-of-pocket costs and full coverage.

• Cost considerations: OEM parts are designed specifically for your vehicle brand and model, making them typically more expensive than aftermarket parts often preferred by insurers to reduce repair costs.
• Policy specifics and endorsements: Many policies require an endorsement or rider to cover OEM parts fully, which may increase premiums but ensures genuine parts are used in repairs.
• Regional risks impacting repairs: Northern Colorado and Utah face unique risks such as hail damage—with hail causing nearly 23% of comprehensive claims—and theft, impacting repair decisions and coverage needs.

What Most People Get Wrong

Many powersport owners assume that all repairs will automatically use OEM parts without additional cost or approval. However, insurance companies often default to aftermarket parts unless an endorsement is in place. In regions like Fort Collins or Salt Lake City, where vehicle values and modifications can be significant, overlooking the need for OEM coverage endorsements may lead to unexpected out-of-pocket expenses.

Others may not realize that the type of accident or damage location matters. For example, damage from an off-trail accident might have different coverage implications, influencing whether OEM parts are authorized.

The Complete Picture

When your powersport vehicle requires repair following an accident or weather-related damage, whether OEM parts are covered depends on your specific insurance policy type and the endorsements you have. OEM parts are created by the vehicle's manufacturer and match the exact specifications, which supports vehicle performance and resale value.

Insurance companies often prefer aftermarket parts for repairs to control costs because they are less expensive. Therefore, many standard policies only cover aftermarket parts unless you have purchased an endorsement specifically covering OEM parts. This is particularly relevant in rural or mountainous areas of Colorado and Utah where the quality and durability of repairs are important due to tough terrain.

Reviewing your policy with your insurance agent ensures you understand if your plan includes OEM parts coverage or if adding this rider is beneficial. Considering the higher repair costs associated with hail damage, which claims roughly 23% of comprehensive claims in Northern Colorado, having OEM coverage can protect you financially and maintain your vehicle’s integrity.

Making the Right Decision for Colorado and Utah Residents

Question 1: Do you prioritize maintaining your vehicle's original integrity and performance?

Understanding your preference for repair parts is key. OEM parts maintain the designed quality of your vehicle but come at a higher cost that may require policy endorsements. Consider whether this investment aligns with your expectations and vehicle use.

• If "yes," ask your agent about an endorsement that ensures OEM parts coverage.
• If "no," standard coverage with aftermarket parts may suffice.

Question 2: Are the areas where you ride (trails, public lands, or private property) likely to subject your vehicle to damage requiring OEM parts?

Assess the risk based on your riding environment. For example, intense hail in Northern Colorado or rocky trails in Utah increase the chance of damage that requires OEM quality repairs.

Question 3: How do your current and future financial considerations influence your coverage choices?

OEM endorsements can increase premiums but potentially save on expensive repairs later. Evaluate how much risk you can take versus your budget for premiums and repairs in the event of a claim.