Auto Repair Abandonment: Are You Covered By Your Insurance?

Whether auto insurance covers auto repair abandonment depends on the type of coverage you have and when the damage occurred. While standard auto insurance policies typically do not cover repairs related to routine wear and tear or mechanical breakdowns, some companies offer additional coverage options, such as mechanical breakdown insurance (MBI) or extended warranties, that may cover these costs. MBI is similar to an extended warranty as it covers many of the same components, but it does not cover the replacement of wear-and-tear items like brake pads, spark plugs, filters, or tires. It is important to note that not all insurers offer MBI, and those that do often have limitations on when it can be purchased and for how long.

Auto insurance covers repairs after accidents or events like theft or hailstorms

Auto insurance can cover repairs after accidents or events like theft or hailstorms, but it depends on the type of coverage you have. If you have a minimum coverage policy, also known as liability coverage, it will pay to repair a car that you damaged in an accident, or if another driver crashes into you, their liability insurance will cover the cost of repairing your car.

A full coverage policy includes liability coverage and additional coverage for damage to your car. This includes collision insurance, which pays for repairs after an accident caused by the policyholder, and comprehensive coverage, which pays for repairs after events such as theft, fire, or a fallen tree limb. Comprehensive coverage also usually covers weather-related damage, including hail, and can include vandalism. However, it does not cover personal property stolen from your car or theft of vehicle upgrades, only the theft of the car itself and pre-installed parts.

It's important to note that car insurance will not cover routine car maintenance or ongoing repairs. For example, if a transmission needs to be replaced due to old age, you would need to pay for it yourself or get mechanical breakdown insurance or an extended warranty.

Liability-only insurance covers repairs to another driver's car if you're at fault

Liability-only insurance, also known as third-party insurance, covers repairs to another driver's car if you're at fault. This type of insurance is required by most states and covers property damage and injuries caused to others in a car accident. It includes bodily injury liability, which covers medical expenses, pain and suffering, and loss of income for the injured party, and property damage liability, which covers the cost of repairs to the other driver's vehicle and other property damaged in the accident.

If you are at fault in a car accident, it is important to contact the other driver's insurance company and provide them with the necessary information, such as your name, address, insurance company name and policy information, and statements from witnesses. It is also essential to take pictures of the accident scene and vehicle damage to support the claim.

While liability insurance covers the costs of repairing the other driver's car, it does not cover repairs to your own vehicle. For that, you would need to add comprehensive and collision coverage to your policy. Comprehensive coverage protects against vandalism, theft, natural disasters, and collisions with animals, while collision coverage covers damage to your car from any accident, regardless of who is at fault.

Additionally, it is worth noting that liability insurance does not cover repairs for routine mechanical breakdowns or normal wear and tear. For that, you would need to purchase separate car repair insurance or mechanical breakdown insurance (MBI). MBI covers repairs to key engine components and other essential parts in the event of a breakdown but does not include maintenance or the replacement of wear-and-tear items like brake pads or tires.

Full coverage insurance includes repairs to your car after accidents or events

Liability insurance covers repairs to other people's vehicles if you are at fault in an accident. Comprehensive insurance covers damage to your vehicle that is not due to an accident. For example, if a tree falls on your car during a storm, comprehensive insurance will cover the cost of repairs. Collision insurance covers damage to your vehicle resulting from many kinds of incidents when your car is in motion. For instance, if you hit a guardrail, fence, or lamp post, collision insurance will cover the repairs.

Full coverage insurance will not cover repairs in all circumstances. Repairs needed due to street racing, off-road driving, or using the vehicle for a car-sharing program are generally excluded. Additionally, standard car insurance policies do not cover repairs related to routine wear and tear or mechanical breakdowns. However, you can purchase mechanical breakdown insurance (MBI) or extended warranties separately to cover these types of repairs.

Mechanical breakdown insurance (MBI) covers major mechanical issues but not routine maintenance

Mechanical breakdown insurance (MBI) is an optional add-on to your auto insurance policy that covers the cost of repairing or replacing the major mechanical and electrical components of your vehicle in the event of a mechanical breakdown. This includes the engine, transmission, electrical systems, and powertrain. MBI is similar to an extended warranty but provides more coverage and is typically purchased through an auto insurance provider.

MBI is worth considering if you are buying a new car, planning to keep your car for a long time, or are concerned about paying for unexpected repair costs out of pocket. It is also a good option if you are still paying off a new car after the manufacturer's warranty has expired or if you have bought a used car that is no longer under warranty. MBI typically costs around $100 per year, with an average deductible of $250.

However, it's important to note that MBI does not cover routine maintenance or repairs resulting from normal wear and tear. This includes oil changes, tire rotations, brake pad replacements, and the replacement of filters, tires, spark plugs, and brake pads. Additionally, MBI does not cover towing or repairs resulting from accidents, collisions, or environmental factors.

When purchasing MBI, you will need to pay a premium, typically in monthly installments for the duration of the coverage period. Once your vehicle experiences a covered mechanical breakdown, you will file a claim with your MBI provider. Some providers require you to take your car to a specific repair facility, while others allow you to choose your own repair shop. After paying your deductible, your insurance provider will cover the remaining cost of the repair or replacement.

Auto repair insurance can be purchased separately or added to your standard policy

Auto repair insurance, also known as mechanical breakdown insurance (MBI), is available as an add-on to your standard auto insurance policy or as a separate purchase from major insurers. It covers the cost of repairs to your vehicle in the event of a mechanical breakdown, which is typically not covered by standard auto insurance.

MBI is similar to an extended warranty offered by car dealers and manufacturers, as it covers the same components. However, MBI is often more comprehensive and provides broader protection from mechanical failures for the entire length of the term. It covers the cost of repairs to major components, such as the engine, transmission, and electrical systems, which can save you thousands of dollars.

When purchasing MBI, you will likely have to choose a deductible, which is the amount you will pay out of pocket before the insurance coverage kicks in. Deductibles for MBI are usually low, ranging from $250 to $500. You will also need to select a payment plan, with some providers offering monthly or annual payments.

It is important to note that MBI does not cover routine maintenance or repairs resulting from normal wear and tear. It also does not include vehicle towing, but you can usually add roadside assistance as an additional service. Additionally, MBI may have limitations on when it can be purchased, such as when the vehicle is below a certain age or mileage level.

Some recommended providers that offer MBI include Geico, Progressive, and American Family. When reaching out to insurers for quotes, be sure to ask if they offer MBI coverage and compare costs to find the best option for your needs.

Frequently asked questions