State Farm aftermarket parts coverage allows the insurance company to write repair estimates using new non-original equipment manufacturer (non-OEM), recycled, or OEM surplus parts. Standard physical damage policies like collision and comprehensive are designed to pay for repairs of like kind and quality, which means State Farm is not obligated to pay for brand-new original manufacturer parts in every situation. Understanding how this policy works, what standards the insurer applies, and what options you have as a driver can help you manage repair choices after an accident.
How State Farm Uses Aftermarket Parts on Repair Estimates
When you submit a collision or comprehensive claim, a claims adjuster or a repair shop participating in the State Farm Select Service program generates a damage estimate. In most standard policies, State Farm calculates repair costs based on the price of non-OEM or recycled parts if those components are available, cost-effective, and meet specific quality standards.
Aftermarket parts are components produced by third-party manufacturers rather than the original carmaker. State Farm relies on these alternatives to reduce repair costs, which directly impacts overall premium rates. In addition to new aftermarket options, repair estimates may include recycled parts salvaged from other vehicles or OEM surplus components acquired from alternative distribution channels.
State Farm requires certified non-OEM components for critical structural and cosmetic crash repairs. For non-OEM parts used in areas like bumper components, outer body panels, lighting, and radiator supports, the insurer specifies that parts must be certified by independent testing organizations such as the Certified Automotive Parts Association (CAPA) or NSF International.
The State Farm Satisfaction Guarantee for Non-OEM Parts
To offset concerns regarding fit and performance, State Farm includes a specific guarantee when non-OEM parts are used in approved repairs. If you authorize repairs using non-OEM, recycled, or OEM surplus parts included on the official estimate, State Farm promises customer satisfaction with the fit, corrosion resistance, and performance of those components for as long as you own or lease the vehicle.
If a covered aftermarket part fails, corrodes, or does not fit properly during your ownership, State Farm promises to repair or replace the component at no additional cost to you. However, this lifetime satisfaction promise carries important limitations:
- It excludes routine wear-and-tear maintenance items like tires, batteries, belts, and hoses.
- Powertrain, drivetrain, and sound equipment components are limited to the duration of the original manufacturer’s replacement warranty or the remainder of the vehicle’s factory warranty, whichever is longer.
- If a claim settlement involves comparative liability, where State Farm pays less than 100 percent of the total repair cost due to shared fault, any supplemental payment for replacement parts is calculated based on the accepted percentage of liability.
Can You Choose OEM Parts Instead of Aftermarket Parts?
Vehicle owners maintain the legal right to decide which physical parts are installed on their vehicles during a repair. However, choosing OEM parts over non-OEM parts on a standard State Farm policy typically introduces out-of-pocket costs.
If State Farm bases its repair estimate on certified aftermarket parts and you instruct the repair shop to use original factory parts instead, you are responsible for paying the price difference. The shop will bill you for the balance between the insurance-approved non-OEM price and the retail cost of the factory parts.
State-specific notification procedures apply if you decide to reject aftermarket parts:
- In most states, you simply notify your chosen body shop of your preference for OEM parts and agree to settle the price difference directly.
- In Indiana, policyholders must notify both the repair shop and State Farm in writing before substituting parts.
- In Minnesota, written or verbal notification must be submitted to both the repairer and State Farm prior to initiating repairs.
Policyholders looking to avoid out-of-pocket expenses when insisting on factory components can discuss OEM endorsement options with their State Farm agent. Availability for OEM endorsements varies by vehicle age, state insurance regulations, and individual underwriting profiles.
State Regulations and Legal Framework Surrounding Non-OEM Parts
Insurance policies operate under strict state-level oversight, which shapes how State Farm applies its aftermarket parts policy. State insurance departments mandate that replacement parts used in repairs must return the vehicle to its pre-loss condition in terms of function, appearance, and safety. Courts and regulators generally interpret this as requiring parts of like kind and quality rather than strictly new OEM components.
State disclosures require insurers to clearly label every line item on a repair estimate. If non-OEM, recycled, or surplus parts are listed, the estimate must explicitly identify the part type, manufacturer, and certification status. Several state statutes also require written consumer consent or specific advisory language on the estimate before non-OEM crash parts can be installed during a collision claim repair.
How Custom and Custom Auto Equipment Coverage Works
Standard State Farm collision policies address factory-installed or standard replacement components. If you have installed custom aftermarket performance parts, specialized wheels, custom paint, or aftermarket audio equipment, standard collision coverage may not pay to replace those items with equivalent high-performance aftermarket gear.
Custom equipment and vehicle modifications usually require specialized Endorsement Coverage for Car Modifications and Special Equipment. Without this supplemental endorsement, State Farm will generally settle claims for damaged aftermarket modifications based on the cost of standard, factory-equivalent parts or up to a fixed policy sub-limit. Vehicle owners who add high-value aftermarket upgrades should declare those additions to their agent to ensure proper policy limits are attached before a loss occurs.
Requesting OEM Parts or Resolving Fitment Issues
Managing your repair options effectively after an accident involves several actionable steps:
- Review the initial State Farm estimate line by line to determine whether non-OEM, CAPA-certified, or recycled parts were specified.
- Consult with your chosen auto body shop to determine if the non-OEM parts listed meet manufacturer repair guidelines for your vehicle make and model.
- Request an OEM parts price comparison from the shop to understand your exact out-of-pocket financial responsibility if you choose to decline aftermarket substitutions.
- Notify State Farm immediately if an installed aftermarket part exhibits cosmetic defects, improper alignment, or mechanical issues, so the insurer can activate its repair guarantee.
