YOU ASK:
What is the definition of Original Equipment Manufacturer Parts (OEM)?
WE ANSWER:
Original Equipment Manufacturer Parts refer to automobile parts that are made by the very same manufacturer of the vehicle.
Called OEM for short, these parts are normally more expensive that generic auto parts (parts manufactured by companies other than the original manufacturer). The advantage of OEM is that the parts fit perfectly with the automobile, as these are manufactured for the exact model/make.
In repairing a damaged vehicle, there is an option to use OEM parts or generic auto parts. The costs involved will impact the paying insurance company's costs and loss experience. That is why insurance companies encourage the use generic auto parts, since this will lower claims payments in auto insurance policies.
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