Motorcycle Insurance Cost: OEM Endorsement
In case of an accident or damage, if you want your bike to be repaired with Original Equipment Manufacturer (OEM) parts, you’ll need to choose a motorcycle insurance company that offers an OEM endorsement.
Without an OEM endorsement, many insurance companies use aftermarket or generic parts for repairs, which might not fit or function as well as OEM parts.
Below is general information about how OEM endorsements work, the benefits of this type of coverage, and who could benefit the most from OEM coverage.
What Is An OEM Endorsement
If your motorcycle needs repairs (due to an incident that’s covered by your motorcycle insurance policy), an OEM endorsement ensures that the replacement parts that are used will be from the original manufacturer.
How Does OEM Coverage Work
When you have an accident or a covered claim (such as theft, vandalism, or damage from weather), you file a claim with your insurance company. An insurance adjuster assesses the damage to your motorcycle and provides an estimate for repairs. If you have OEM endorsement coverage, the insurance company will specify the use of OEM parts in the repair process. The repair shop will then use OEM parts (wherever possible) to restore your motorcycle to its pre-accident condition, ensuring that it meets the manufacturer’s specifications.
Benefits Of An OEM Endorsement On Motorcycle Insurance
There are a number of benefits to having an OEM endorsement on you motorcycle insurance policy and to using OEM parts for repairs.
Guaranteed Use Of Original Parts
An OEM endorsement ensures that original equipment manufacturer parts are used to repair your motorcycle, which can help maintain its quality and performance.
Restoration To Factory Condition
With OEM coverage, your motorcycle will be restored to its factory condition after a repair, helping to maintain its original integrity. The use of OEM parts ensures that your repaired motorcycle maintains its original performance, safety standards, and appearance.
High-Quality, Tested Parts
OEM parts are tested for safety and durability, and they’re typically higher-quality replacements than many types of aftermarket parts or generic parts.
Higher Resale Value
Using OEM parts for repairs can help preserve the resale value of your motorcycle.
Who Needs OEM Insurance Coverage
Not everyone needs OEM insurance coverage, but it provides the most benefit if you own a certain type of motorcycle, including:
- a new or late-model motorcycle
- a customized bike
- a high-end bike
It’s important to note that if you have a really old or rare bike, OEM parts might not be readily available, so an OEM endorsement wouldn’t be particularly useful.
Check With Your Insurance Agent Or Company
Please note that the information provided above is for informational purposes only. For the most accurate, up-to-date, specific information, check with your insurance agent or insurance company!