Does Auto Insurance Cover Transmission Repairs?

Does Auto Insurance Cover Transmission?

Auto insurance policies typically do not cover transmission repairs unless the damage is caused by a covered incident, such as an accident or other peril. In most cases, standard auto insurance policies exclude mechanical failures or breakdowns resulting from wear and tear or lack of maintenance. However, there are certain instances where transmission repairs may be covered.

Mechanical Breakdown Insurance

MBI can provide financial protection from unexpected vehicle repairs, which can be costly. The average driver spends nearly $550 per year on car repairs, and the cost to fix complex mechanical issues can quickly add up. MBI works like a regular car insurance policy. If a covered system in your car malfunctions, you will contact the insurance company and file a claim. Depending on the problem, you might need to take the car to a mechanic to get an estimate for the cost of repairs. Once your claim is approved, you will receive a payout for the repairs, minus the cost of your deductible. Most insurance companies allow you to choose your mechanic, but some may require you to use a preferred service provider.

The cost of MBI varies depending on the company and the type of vehicle you have. It typically costs about $100 annually, and you will also need to pay a deductible when filing a claim. The deductible amount can vary, but it is usually around $250. When deciding whether to purchase MBI, it is important to consider the age and reliability of your car, as well as the potential cost of repairs compared to the cost of the insurance and deductible.

Collision Coverage

It's important to note that collision coverage has its limitations. For instance, if your transmission breaks down due to regular use or mechanical issues, collision coverage will not apply. In such cases, you would need mechanical breakdown insurance to cover the cost of repairs. Additionally, collision coverage may not be included in standard auto insurance policies, and you might need to purchase additional coverage.

If you're involved in an accident and your transmission is damaged, collision coverage will likely come to your aid. However, it's always a good idea to carefully review your insurance policy to understand the specific terms, conditions, and exclusions related to collision coverage and transmission repairs.

To provide an example, let's say you're driving down the road and another car suddenly veers into your lane, causing a collision. In this scenario, your collision coverage would typically cover the cost of repairing the damage to your vehicle, including the transmission, regardless of who was at fault.

Comprehensive Coverage

When purchasing comprehensive coverage, it is essential to carefully review the policy to understand what specific situations are covered. While it can provide valuable protection in the event of a covered incident, it is not a substitute for mechanical breakdown insurance or proper vehicle maintenance.

Additionally, comprehensive coverage usually comes with a deductible, which is the amount you will need to pay out of pocket before the insurance company covers the remaining costs. The deductible amount can vary, so it is important to consider this when choosing your policy.

In summary, comprehensive coverage is a valuable addition to your auto insurance policy, especially if you live in an area prone to natural disasters or if you are concerned about the potential costs of repairs due to theft, vandalism, or fire damage. However, it is important to remember that comprehensive coverage does not include mechanical breakdown insurance, and regular vehicle maintenance is still essential to keep your car in good condition.

Manufacturer's Warranty

A manufacturer's warranty is a repair contract that limits a car owner's financial risk for a set period. It is not insurance and does not cover accidents or abuse. It covers defects or damages from regular use.

A car warranty is a contract that states that the car's manufacturer or the aftermarket warranty company you bought an extended warranty from will pay for some repairs to your vehicle. Warranties cover problems the manufacturer considers defects and kick in when a component doesn't live up to reasonable expectations. So, they don't cover damage from accidents or when using your car in a way the manufacturer didn't intend. They also don't cover normal wear and tear.

Car manufacturers typically offer a warranty that covers the transmission alongside other vital components responsible for propelling the vehicle. Manufacturers or factory warranties typically last between three years (or 36,000 miles) and five years (or 60,000 miles). The powertrain warranty, included in the manufacturer's bumper-to-bumper warranty, protects internal parts such as gears, clutches, and modulators within the transmission itself. It can extend powertrain component coverage up to 10 years (or 100,000 miles). Coverage with a powertrain warranty goes beyond just the transmission. Oftentimes, the powertrain warranty covers the engine, differential, driveshaft, axles, and other components that get your car moving, making it a relatively comprehensive warranty.

The specific details and mileage limits of a manufacturer's warranty will be outlined in your owner's manual or on the dealership's website. It's important to treat this manual as more than just a new car guide and read the fine print. It's a roadmap to understanding what's covered under your warranties and how long that coverage will last.

A warranty is usually available from the dealership. It is built into the price of a new car, and no dealer should ever try to charge you a warranty fee on a new car.

Vehicle Service Contracts

When purchasing a vehicle service contract, it's important to shop around and compare different providers. The cost of the contract will depend on factors such as the make, model, condition, coverage, and contract length of the vehicle. Additionally, there may be a deductible that you need to pay per visit or per repair.

It's also important to carefully read the details of the contract and understand what is included and excluded. For example, if a non-covered part damages a covered part, the service contract provider may deny coverage. It's also crucial to know the fine details, such as which companies can perform services and how to submit a claim.

Frequently asked questions