Haris Ashley
Auto insurance can help cover the cost of car repairs, but it depends on the type of coverage you have and the cause of the damage. Standard policies typically cover repairs for accidents, acts of vandalism, or severe weather, but not for routine maintenance or mechanical breakdowns. However, some insurers offer optional add-ons or specialised types of insurance to cover a wider range of repairs.
| Characteristics | Values |
|---|---|
| What does auto insurance cover? | Auto insurance covers repairs if your vehicle is damaged in an accident or due to a covered incident, such as fire, theft, or vandalism. It also covers medical bills, lost wages, and funeral costs. |
| What doesn't auto insurance cover? | Auto insurance does not cover routine maintenance, mechanical failures, or repairs resulting from normal wear and tear. |
| What is mechanical breakdown insurance (MBI)? | MBI is a type of insurance that covers mechanical repairs to your vehicle that are not caused by an accident. It is similar to an extended car warranty but is purchased from an insurance company. |
| What does MBI cover? | MBI covers repairs to key engine components and other essential parts in the event of a breakdown. Examples include convenience technology, cooling and heating systems, electrical systems, and safety technology. |
| What doesn't MBI cover? | MBI does not cover damage caused by poor maintenance, accidents, non-mechanical items, normal wear and tear, parts covered by a recall or warranty, and routine maintenance. |
| How does MBI work? | You pay a deductible (usually between $250 and $400), and then MBI covers the remaining cost of the covered repairs. |
| Where can I get MBI? | Not all insurance providers offer MBI. Some providers that do are Geico, Progressive, and American Family. |
What You'll Learn
Collision coverage
When deciding on the amount of your deductible, consider the cost of your car and its potential corresponding repairs, as well as your willingness to pay for repairs under the deductible amount. A higher collision deductible will lower your monthly premium but may put you at risk in the event of an accident.
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Comprehensive coverage
While comprehensive coverage will protect you from unforeseen events, it is important to note that it does not cover regular wear and tear or mechanical breakdowns. For mechanical repairs, you may need to purchase additional coverage, such as mechanical breakdown insurance (MBI).
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Mechanical breakdown insurance
Every car insurance company covers different repairs, but you can expect most policies to cover the following:
- Heating and cooling systems
- Internal computer and GPS
MBI is available for new or leased cars that are less than 15 months old and with less than 15,000 miles. The customer must also be the first owner of the vehicle. Once purchased, MBI can be renewed for up to seven years or 100,000 miles, whichever comes first. After paying a deductible, the insurance will cover the remaining cost of the covered repairs with your service provider.
MBI is different from an extended warranty in that it covers more parts and systems, is cheaper, and allows you to get your car repaired wherever you like. However, MBI does have a deductible, whereas an extended warranty typically does not.
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Extended warranties
When deciding whether to purchase an extended warranty, weigh the cost of the warranty against the likelihood that you will need to use it and your ability to pay for repairs without a warranty. You should also consider the reliability of your vehicle, your financial situation, and your risk tolerance.
It's important to note that extended warranties do not cover everything. They usually do not cover routine maintenance, such as oil changes, new tires, or new brakes. They also typically do not cover damage caused by accidents, environmental issues, or misuse/neglect. Additionally, there may be specific requirements outlined in the warranty contract that must be followed, such as routine oil changes, or the contract may be voided.
Before purchasing an extended warranty, be sure to read the fine print carefully to understand what is and isn't covered. It is also recommended to compare prices from various reputable providers and work with a reputable company to avoid scams.
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Roadside assistance
You can get roadside assistance through a few different providers, including auto clubs, insurance companies, car manufacturers, and extended warranty companies. Auto clubs, like AAA, tend to be more expensive but offer better benefits and higher towing mileage allowances. On the other hand, insurance companies often provide roadside assistance as an add-on to your policy, which can be more affordable. Car manufacturers may also offer free roadside assistance for a limited time with the purchase of a new car.
When choosing a roadside assistance plan, it's important to consider the coverage limits and the number of occurrences included. Some plans have a maximum amount they will pay per occurrence or per year, while others may only cover a certain number of incidents. Additionally, some providers require you to pay for the service upfront and then submit receipts for reimbursement.
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Frequently asked questions
Whether auto insurance covers repairs depends on the type of coverage you have and the cause of the damage. Standard policies only cover specific types of repairs, like accidents, acts of vandalism, or severe weather.
Auto insurance typically does not cover repairs related to normal wear and tear or mechanical failures.
MBI is a type of insurance that covers mechanical repairs to your vehicle that are not caused by an accident. It is similar to an extended car warranty but is purchased from an insurance company.
MBI covers a broader range of mechanical issues and is often more comprehensive than an extended warranty. It also has a longer duration and is more flexible in terms of payment options.
