Auto Insurance And Maintenance: What's Covered And What's Not

Auto insurance typically does not cover maintenance or repairs related to routine wear and tear or mechanical breakdowns. However, auto insurance will cover repairs if they are related to a covered incident, such as a car accident, collision with an animal, or damage caused by natural disasters or acts of vandalism. It's important to note that car insurance policies vary, and some companies offer additional coverage options, like mechanical breakdown insurance (MBI), which can provide extra protection for mechanical failures.

Car insurance covers repairs from accidents and natural disasters

Regular car insurance does not cover vehicle repairs or maintenance costs, such as oil changes or engine tune-ups. However, it does cover expenses associated with accidents and natural disasters.

Accidents covered by insurance include collisions with another car, a tree, a fence, or a guardrail, as well as damage from a road hazard like a pothole. If your vehicle is damaged by a natural disaster, such as a storm or a tree branch falling on it, insurance will also cover the cost of repairs.

Additionally, you can add optional car repair insurance to your plan for further coverage. Mechanical breakdown insurance (MBI) is a type of car repair insurance that covers repairs not caused by accidents or natural disasters. MBI policies have deductibles, and once you pay that deductible, your carrier will pay for the covered repairs. However, MBI policies have low-mileage requirements, so older vehicles may not qualify.

While insurance does not typically cover repairs or maintenance, it can provide valuable protection in the event of accidents or natural disasters.

Mechanical breakdown insurance (MBI) covers mechanical failures

Regular car insurance does not cover vehicle repairs or maintenance costs, such as oil changes or engine tune-ups. However, mechanical breakdown insurance (MBI) is an option for car owners who want to protect themselves from unexpected repair costs. MBI is a separate type of policy that covers mechanical failures on your vehicle. This type of insurance can be added to many traditional car insurance policies to provide additional coverage for situations that are not caused by accidents or natural disasters.

MBI policies typically cover a wide range of mechanical failures, including engine and transmission problems, as well as issues with other essential parts. For example, MBI can help cover the cost of repairs or replacement of major components like the engine or transmission. It's important to note that MBI policies usually come with a deductible, and there may be low-mileage requirements for older vehicles.

While MBI can provide valuable protection, it's important to understand its limitations. Most MBI policies do not cover regular maintenance or wear and tear on systems designed to wear out, such as oil filter replacement or windshield wiper blades. In addition, damage caused by poor maintenance may also be excluded from MBI coverage. As such, it's crucial to review the specific terms and conditions of any MBI policy before purchasing it.

When considering MBI, it's also worth comparing it with extended warranty options. Extended warranties can provide coverage for routine maintenance and wear-and-tear items, such as annual oil changes, brake pad maintenance, and wiper blade replacement. They may also offer additional perks, such as rental car reimbursement while your vehicle is being repaired. However, extended warranties typically come with higher costs, ranging from $1,000 to $3,000, and may have stricter eligibility requirements regarding vehicle age and mileage.

In conclusion, mechanical breakdown insurance (MBI) is a valuable option for car owners seeking protection from unexpected mechanical failures. While it does not cover regular maintenance or wear and tear, it can provide peace of mind and financial assistance in the event of a major mechanical issue. By understanding the coverage provided by MBI and comparing it with other options like extended warranties, car owners can make informed decisions about their vehicle protection needs.

MBI is an optional add-on to standard car insurance

Regular car insurance does not cover vehicle repairs or maintenance costs, such as oil changes or engine tune-ups. However, it does cover expenses related to natural disasters and accidents.

Mechanical Breakdown Insurance (MBI) is an optional add-on to standard car insurance. MBI covers repairs or replacement of vehicle components in the event of a mechanical breakdown. It is important to note that MBI does not cover maintenance and repairs related to wear and tear, such as oil filter replacement or windshield wiper blade damage.

MBI is typically purchased within a specific timeframe and has low-mileage requirements. It is also subject to a deductible, which must be paid before the insurance carrier covers the cost of repairs.

When considering MBI, it is essential to review the applicable service contracts closely, as each plan is unique. MBI provides added protection for unexpected breakdowns, but it does not replace the need for regular maintenance and proper vehicle care.

Extended warranties cover routine maintenance

Extended warranties are a great way to ensure routine maintenance is covered for your vehicle. While regular auto insurance does not cover the cost of vehicle maintenance, extended warranties can fill this gap. They are a valuable addition, especially for older vehicles or those with high mileage, which may require more frequent servicing.

Extended warranties are available from various providers, including car manufacturers, dealerships, lenders, insurance companies, and third-party vendors. They offer different levels of coverage, with some including routine maintenance, and others excluding it. It is important to carefully review the terms of your warranty to understand what is and isn't covered.

Some extended warranties cover a wide range of maintenance services, such as annual tire rotation, oil and filter changes, brake pad maintenance, and wiper blade replacements. These services can be costly, so having them covered under an extended warranty can provide significant savings.

It is worth noting that extended warranties are separate from your standard auto insurance and are often sold as add-ons or through third-party providers. They act as a supplementary form of protection, ensuring you don't have to pay out of pocket for routine maintenance.

When considering an extended warranty, it is essential to compare the cost of the warranty with the expected maintenance expenses. By doing so, you can make an informed decision about whether the warranty is a worthwhile investment for your vehicle's maintenance needs.

In addition to routine maintenance, extended warranties may also offer perks such as roadside assistance, rental car reimbursement, and trip interruption coverage. These benefits can provide peace of mind and further enhance the value of the warranty.

It is also important to note that extended warranties have eligibility requirements. They are typically offered for newer vehicles with low mileage and a good service history. To maintain eligibility, vehicle owners must adhere to the manufacturer's maintenance requirements and schedules.

In summary, extended warranties can provide valuable coverage for routine maintenance, saving you money and ensuring your vehicle is well-maintained. However, it is important to carefully review the terms, eligibility requirements, and additional benefits offered by the warranty provider to make an informed decision about what is best for your vehicle.

Car repair insurance is another option for covering repairs

Regular car insurance does not cover vehicle repairs or maintenance, such as oil changes or engine tune-ups. However, car repair insurance, also known as mechanical breakdown insurance (MBI), is an option for those seeking to cover repairs. MBI can be added to many traditional car insurance policies to provide additional coverage for situations that are not caused by accidents or natural disasters. While MBI does not cover damage caused during an accident, it can help pay for car repairs in other scenarios. Each plan is unique, so it is important to review all applicable service contracts before signing up for coverage.

MBI policies typically come with a deductible, and once this is paid, the carrier pays for the covered car repairs. However, MBI has low-mileage requirements, and older vehicles may not qualify for this coverage. Most MBI policies do not cover regular maintenance on systems designed to wear out, such as oil filter replacement or windshield wiper blades.

When considering car repair insurance, it is important to compare the cost of the coverage to the cost of potential repairs. MBI policies usually cost between $25 and $150 per year, and drivers should ensure that the price of the coverage is justified by the potential repair costs. Additionally, MBI policies have eligibility restrictions, typically limiting coverage to vehicles with less than 15,000 miles, though this varies by plan.

When choosing car repair insurance, it is essential to consider factors such as vehicle age and condition, driving habits, and replacement and repair costs. MBI may be a good option for those more concerned with mechanical breakdowns than maintenance, while an extended warranty could be more suitable for those who travel frequently and require roadside assistance or rental car reimbursement.

Frequently asked questions