Paul Sanchez
Whether your auto insurance covers repairs at a garage depends on the type of repair needed and the cause of the problem. If your vehicle is damaged due to an accident, vandalism, or a covered peril, such as a hailstorm, your insurance may pay for the repairs. However, standard auto insurance policies typically do not cover repairs for regular wear and tear, routine maintenance, or mechanical failures. If you want coverage for these types of repairs, you may need to purchase additional protection, such as mechanical breakdown insurance (MBI) or an extended warranty.
| Characteristics | Values |
|---|---|
| Type of insurance | Mechanical breakdown insurance (MBI) |
| What does it cover? | Repairs to key engine components and other essential parts in the event of a breakdown |
| What does it not cover? | Wear-and-tear items like brake pads, spark plugs, filters, or tires |
| Who offers it? | GEICO, Progressive, American Family, Allstate |
| Requirements | Vehicle must be below a certain age or mileage level |
| Deductible | Usually between $250 to $400 |
| Renewal | Can be renewed annually until the car reaches a certain age or number of miles |
| Cost | May add hundreds of dollars per year to premium payments |
What You'll Learn
Collision coverage
In addition to collision coverage, comprehensive coverage is another type of optional insurance that can offset the costs of repairs. Comprehensive coverage protects your vehicle from damages caused by disasters other than collisions, such as contact with animals, natural disasters, theft, and fallen objects.
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Comprehensive coverage
The most comprehensive coverage will pay is based on the actual cash value of your vehicle. You will be responsible for paying your selected deductible. A comprehensive deductible is the amount you agree to pay before the insurance company starts paying for damages. Typically, the more risk you're willing to take (higher deductible), the lower your insurance cost will be. The less risk (lower deductible), the higher your insurance costs will be.
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Mechanical breakdown insurance (MBI)
MBI typically costs around $100 per year, with an average deductible of $250. The cost can vary depending on the vehicle, the insurance company, the policy duration, the value of the car, the mileage, and the type of vehicle. For example, luxury cars or electric vehicles may have higher repair costs, which can increase the price of MBI.
When purchasing MBI, you will pay a premium, usually in monthly installments for the duration of the coverage period. In the event of 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 repair shop. Once your claim is approved, your MBI provider will cover the cost of the repair or replacement, minus any deductible.
It's important to note that MBI has limitations. It is usually only available for new or relatively new vehicles with low mileage (typically under 15,000 miles). Additionally, MBI does not cover routine maintenance, wear and tear, or damage caused by accidents, collisions, or environmental factors.
MBI is a valuable option if you are buying a new car, planning to keep your car for an extended period, or are concerned about paying for unexpected repair costs out of pocket. It provides peace of mind by ensuring that your car stays fully functioning and helps to offset potentially costly repair bills.
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Roadside assistance
If you're looking for help with your vehicle at the roadside, there are a number of options for roadside assistance.
Auto Clubs
Auto clubs like AAA are a well-known option for roadside assistance. They offer comprehensive services, including battery jump-starts, lockout assistance, fuel delivery, towing, and spare tire installation. These services typically cost around $70 to $150 per year and provide extensive benefits and towing mileage allowances.
Insurance Providers
Many insurance companies offer roadside assistance as an add-on to your car insurance policy, often for as little as $10 to $20 per year. Geico, for example, provides emergency roadside assistance for as low as $14 annually, covering towing, winching, and more without additional charges. However, insurance company plans may have limitations on the number of service occurrences per year or maximum towing miles.
Auto Manufacturers
If you've recently purchased a new car, auto manufacturers like Toyota and Honda often provide free roadside assistance for a limited time. This can include services such as towing, battery issues, and more.
Extended Warranties
Manufacturer or third-party extended car warranties can include roadside assistance. This provides added peace of mind if your vehicle requires unexpected repairs.
Other Companies
Some non-auto companies, such as AT&T, Verizon, AARP, Chase Bank, and Visa, also offer roadside assistance programs. These may simply provide a service number, and you might need to pay for each use.
Rental Car Companies
If you're renting a car, companies like Hertz and Enterprise often offer roadside assistance as an add-on to your rental agreement.
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Accident forgiveness
Eligibility for accident forgiveness varies by insurance company. For example, Liberty Mutual requires five years of accident-free driving, while Progressive requires an accident-free driving record for a certain period, even for long-term customers. GEICO requires drivers to be over 21 and have five years of accident-free driving, and Allstate requires drivers to pay for their Gold or Platinum coverage plan.
When considering accident forgiveness, it's important to read the fine print and ask questions to understand the specific terms and conditions of the coverage. For example, some policies may only apply to certain drivers on the policy or may have different requirements for newly licensed drivers. It's also worth noting that accident forgiveness may not completely curb rate increases in the event of an accident.
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Frequently asked questions
It depends on what type of coverage you have and when the damage occurred. If you have comprehensive or collision coverage, you may be covered for certain types of repairs.
Auto insurance typically covers repairs resulting from accidents, acts of vandalism, severe weather, fire, or theft. It does not cover routine maintenance or repairs due to normal wear and tear.
Yes, a comprehensive insurance policy typically covers damages related to vehicle break-ins, such as broken windows and damaged locks. However, personal belongings inside the vehicle are usually not covered.
MBI is an optional add-on offered by some auto insurance companies to cover mechanical repairs. It is not included in standard policies and is subject to certain limitations, such as vehicle age and mileage. An extended warranty, on the other hand, is purchased separately and provides continued coverage for specific issues after the manufacturer's warranty expires.
When selecting an auto insurance policy, consider the price, coverage, policy limits, and deductible. Shop around and compare different insurers to find the best coverage for your needs. Additionally, consider adding optional coverage, such as MBI or roadside assistance, if you want extra protection for repairs.
