Farmers vs. Farm Bureau vs. State Farm: How They Handle OEM Auto Parts in Accident Repairs

Quick Answer: Which Insurer Guarantees OEM Parts?

All three major insurers—Farmers, Farm Bureau, and State Farm—offer policies that can cover original equipment manufacturer (OEM) parts, but the guarantee depends on the specific plan you purchase and the state regulations that apply. Generally, a higher‑priced comprehensive or collision coverage with a "OEM parts" endorsement will ensure the repair shop uses factory‑spec parts, while standard policies may default to aftermarket parts unless you request OEM and your state permits it.

Understanding OEM Parts in Auto Insurance

OEM parts are components made by the vehicle's original manufacturer, matching the exact specifications, fit, and finish of the part that came with the car. Insurance companies differentiate between OEM and aftermarket parts because OEM parts are typically more expensive, affecting claim payouts.

How Each Insurer Defines OEM Coverage

Farmers Insurance

Farmers offers an optional "OEM Parts Endorsement" on many of its collision and comprehensive policies. Without the endorsement, the default is to use "reasonable and customary" parts, which often means aftermarket. The endorsement adds a modest premium increase (usually 2‑5% of the base premium) and obligates the insurer to reimburse the actual cost of OEM parts, up to the vehicle's actual cash value.

Farm Bureau Insurance

Farm Bureau's approach varies by state affiliate, but most provide a "Full OEM Replacement" option. This is typically included in higher‑tier policies at no extra cost, though some states require a separate rider. When selected, the insurer will cover the cost of OEM parts plus labor, subject to the policy's deductible and limits.

State Farm

State Farm does not have a universal OEM endorsement; instead, it follows state law and the "actual cash value" (ACV) principle. In states where OEM parts are mandated for new‑vehicle claims, State Farm will automatically use OEM. In other states, policyholders can request OEM, and the adjuster will approve if the cost difference is reasonable. Some State Farm agents offer a "OEM Upgrade" rider for an additional premium.

Comparative Table of OEM Policies

Steps to Secure OEM Parts After an Accident

• File the claim promptly and request a written estimate.
• Specify "OEM parts" in writing; attach the OEM part numbers if possible.
• Ask the adjuster to confirm coverage for the cost difference between OEM and aftermarket.
• Choose a repair shop that stocks OEM parts or can order them directly from the manufacturer.
• Review the settlement offer; ensure it includes labor and any markup for OEM parts.
• If the insurer offers a cash settlement, negotiate to cover the full OEM cost or consider a third‑party appraisal.

Factors Influencing OEM Part Approval

Insurance adjusters consider several variables before approving OEM parts:

Vehicle Age and Value

Newer, higher‑value cars are more likely to qualify for OEM parts because the cost difference represents a smaller percentage of the overall claim.

State Regulations

Some states (e.g., California, New York) have statutes that require OEM parts for new‑car claims, regardless of policy language.

Policy Limits and Deductibles

If the policy limit is close to the vehicle's ACV, the insurer may limit part upgrades to stay within the payout ceiling.

Cost Comparison: OEM vs. Aftermarket

While exact numbers vary by make and model, OEM parts typically cost 20‑40% more than comparable aftermarket alternatives. For a common repair like a front bumper replacement on a 2022 sedan, the cost breakdown might look like this:

Policyholders who prioritize original fit and resale value often accept the higher out‑of‑pocket cost, while others may opt for the cheaper aftermarket option if the insurer does not cover the OEM premium.

How to Evaluate Which Insurer Is Best for OEM Needs

When choosing an insurer, consider the following criteria:

• Policy Flexibility: Does the insurer offer a clear OEM endorsement or rider?
• State Compliance: Does your state mandate OEM parts for new‑car claims?
• Premium Impact: How much does the OEM option increase your overall cost?
• Claims Experience: Look for reviews or consumer reports on how quickly insurers approve OEM parts.

Farm Bureau often scores high for ease of OEM inclusion, especially in Midwestern states, while Farmers provides transparent endorsement pricing. State Farm's approach can be more variable, requiring diligent communication with your agent.

Common Misconceptions About OEM Claims

My insurer will automatically use OEM parts. Not always—most policies default to aftermarket unless an endorsement is added or state law dictates otherwise.

OEM parts are always covered in full. Coverage is limited to the vehicle's actual cash value and any applicable deductibles; the insurer may cap the reimbursement.

Choosing a dealership guarantees OEM parts. Dealerships may use OEM, but they still bill the insurer based on the policy terms. You must still request OEM coverage.

Bottom Line

Farmers, Farm Bureau, and State Farm each provide pathways to OEM part coverage, but the certainty of receiving factory‑spec components hinges on policy endorsements, state regulations, and proactive claim management. Review your policy language, add an OEM rider if needed, and document your request in writing to maximize the chance of a full OEM repair.