Auto Insurance: Understanding Wear And Tear Coverage

Wear and tear on a vehicle is an expected cost of car ownership. As such, it is not covered by insurance, which is designed to cover unexpected costs. This includes regular maintenance and repairs, such as fixing brakes, tuning up the engine, changing the oil, painting over a scratch, or replacing tires. However, mechanical breakdown insurance (MBI) is a type of car insurance that covers mechanical repairs not caused by accidents.

Comprehensive coverage

While comprehensive coverage won't cover wear and tear, it can help protect against physical damage to your vehicle. It can also help pay for repairs after accidents, certain natural disasters, and acts of vandalism or theft.

If you want additional coverage for wear and tear, you may consider a protection plan from a tire dealer, which can cover wear and tear up to a certain number of years or miles. Alternatively, you can self-insure by setting aside money each month for expected maintenance and repair costs.

Collision coverage

Normal wear and tear refers to the gradual deterioration of a vehicle's components over time due to regular use. This includes minor dents, scratches, and paint fading. Wear and tear is typically not covered by collision insurance as it falls under expected maintenance. Examples of wear and tear include faded or chipped paint, small dents or scratches, and worn-out tires, brake pads, or windshield wipers. These items are expected to be replaced periodically as part of regular vehicle maintenance.

On the other hand, collision damage involves more significant damage to your vehicle, usually resulting from an accident or impact. This type of damage can affect the structural integrity, safety features, and overall appearance of the vehicle. Examples of collision damage include crumpled fenders or bumpers, broken windows or windshields, damaged suspension components, and frame or unibody damage. Collision coverage is designed to cover the costs of repairing or replacing these damaged parts.

It's important to distinguish between wear and tear and collision damage when filing an insurance claim. For instance, if you hit a pothole and damage your suspension, that would be considered collision damage. However, if your suspension is damaged due to regular use and age, it would likely be classified as wear and tear, and you would be responsible for the repairs.

Additionally, collision coverage can provide financial assistance when you swerve to avoid an object or animal and end up hitting a fence or another vehicle. It covers single-car losses with damage to the vehicle, ensuring you're not left with a hefty repair bill. This type of coverage is particularly useful if you're involved in an accident with an uninsured motorist or if you're at fault and need to cover the costs of repairs.

In summary, collision coverage is an essential component of auto insurance, offering financial protection for vehicle owners in the event of accidents or collisions. While it covers repairs and replacements due to collision damage, it's important to understand that normal wear and tear is typically excluded from collision coverage. By recognizing the difference between the two, vehicle owners can make informed decisions about their insurance claims and maintain the safety and performance of their vehicles.

Mechanical breakdown insurance

MBI covers internal systems and components, such as the heating and cooling system and the internal computer and GPS. It does not cover damage resulting from accidents, exterior damage, general maintenance, wear and tear, neglect, or tire issues. It is also important to note that MBI has a deductible, which is the amount you pay out-of-pocket before your insurance coverage kicks in.

The cost of MBI varies depending on the company and whether you purchase it as an endorsement or a standalone policy. It may be more expensive for vehicles that are more costly to repair, such as luxury cars. When deciding whether to purchase MBI, consider the age and reliability of your car, as well as whether you already have a warranty or coverage through your auto insurance policy.

Some companies that offer MBI include GEICO, Progressive, and Good Sam. GEICO's MBI covers new or leased cars that are less than 15 months old and have less than 15,000 miles. Progressive's MBI is available for vehicles that are 15 model years old or newer and have less than 100,000 miles. Good Sam's MBI covers vehicles that are 15 model years or newer and have less than 100,000 miles, or 120,000 miles for rear-engine diesel motorhomes.

Extended warranties

There are several types of extended warranties available, including:

• Bumper-to-bumper warranties, which cover all major vehicle systems, electrical systems, safety features, air conditioning, heating, steering systems, high-tech systems, select emissions components, and hybrid vehicle parts.
• Powertrain warranties, which cover the essential parts of your car that allow it to move, such as the engine, transmission, and drivetrain.
• Corrosion perforation warranties, which cover the cost of fixing corrosion affecting the vehicle's outer panels.
• Emissions warranties, which offer repairs or replacements to parts that are likely to cause the car to fail government-required emissions tests.

It's important to note that extended warranties do not cover scheduled maintenance items such as oil changes, tune-ups, tires, wiper blades, or batteries. Additionally, most extended warranties will not cover breakdowns caused by wear and tear, external damage, or issues that existed before the policy was purchased. However, some reputable auto warranty companies will include breakdowns of covered parts, even if they are due to wear and tear.

When considering an extended warranty, it's essential to carefully review the terms and conditions to understand the level of coverage provided. Factors that can affect the cost of an extended warranty include the car's make and model, age, mileage, and condition.

Collision with an animal

Generally, auto insurance does not cover wear and tear. This is because wear and tear is considered an expected expense, and insurance is designed to cover unexpected or unforeseen circumstances. However, comprehensive and collision coverage can help cover physical damage to your vehicle, including accidents, certain natural disasters, theft, and vandalism.

Now, let's focus on the specific scenario of a collision with an animal:

Colliding with an animal can be a traumatic and costly experience, but it's important to know that your auto insurance may provide some coverage. Here's what you need to know:

Comprehensive Coverage:

If you have comprehensive insurance, it typically covers damage to your vehicle caused by a collision with an animal. Comprehensive insurance is designed to protect against incidents that are not your fault, and hitting an animal falls under this category. Whether you hit a deer, a coyote, or even a bear, comprehensive insurance can help cover the repair costs. Keep in mind that you will need to pay your deductible before the coverage kicks in.

Collision with a Domestic Animal:

If you hit a domestic animal, such as a dog or a horse, your comprehensive coverage may not apply. In such cases, your insurance company may pursue the animal's owner for compensation under their homeowner's insurance. This usually happens if the insurance company determines that the owner was negligent, even unintentionally, in allowing their pet to get loose.

Medical Bills and Vet Bills:

If you or your passengers sustain injuries in a collision with an animal, your auto insurance may cover your medical bills. However, vet bills for an injured domestic animal are typically not covered by your car insurance but by the pet owner's homeowner's insurance.

Steps to Take After a Collision with an Animal:

• Move your vehicle off the road to a safe location and turn on your hazard lights.
• If the animal is injured and blocking the road, stay in your vehicle and call animal control. Injured animals can behave unpredictably.
• Gather information: Get contact information from any witnesses and take pictures of any visible car damage, injuries to occupants, and evidence of an animal's involvement, such as blood or fur on your vehicle.
• Call for a tow if needed. If you have roadside assistance or comprehensive coverage, towing services may be included.
• Contact your insurance company to initiate the claims process and provide them with the information and photos you gathered.

Tips for Avoiding Animal-Vehicle Collisions:

• Observe speed limits and drive slowly in areas with a lot of wildlife. This will give you more time to brake if an animal darts onto the road.
• Use your high-beam headlights at night to spot wildlife on the road ahead more quickly.
• Keep a lookout for glowing eyes at night, a tell-tale sign of wildlife on or near the road. Ask your passengers to help keep watch as well.
• If you spot an animal in the road, flash your headlights and honk your horn to scare it away.

In summary, while auto insurance typically doesn't cover wear and tear, it can provide valuable protection in the event of a collision with an animal. Comprehensive insurance, in particular, can help cover repair costs and give you peace of mind when dealing with unexpected incidents on the road.

Frequently asked questions