Orlando Harmon
Whether your auto insurance covers the cost of repairs following an accident that was caused by a mechanical failure depends on the type of insurance coverage you have. If you have a standard insurance policy, it will likely only cover repairs to your vehicle if they are related to an accident. However, if you have a special mechanical breakdown insurance policy, or can trace the problem back to a recent accident, your insurance may cover the cost of repairs.
| Characteristics | Values |
|---|---|
| Will auto insurance cover the accident if it failed mechanically? | Depends on the type of insurance coverage |
| Types of insurance coverage | Collision, Comprehensive, Liability coverage for property damage, Uninsured motorist, Mechanical breakdown insurance, Extended warranty |
| Collision coverage | Pays to repair your car after a crash, regardless of who was at fault |
| Comprehensive coverage | Pays to repair your car from damage not related to a collision, such as falling rocks, a house fire, theft, vandalism, a broken windshield, weather events, and collisions with animals |
| Liability coverage for property damage | Pays to repair your car when you are at fault in a crash (if the other driver was at fault, their coverage would pay to repair your car) |
| Uninsured motorist coverage | Pays for repairs to your car after a crash if the at-fault driver didn't have insurance |
| Mechanical breakdown insurance | Covers any kind of breakdown, such as a blown motor or a problem with your transmission |
| Extended warranty | Backed by the manufacturer and usually bought from the car dealership; covers minor repairs and is available for almost all types of cars |
What You'll Learn
Collision coverage
When deciding on the amount of your deductible, consider the cost of your car and its potential repair costs, as well as your willingness to pay for repairs under the deductible amount. A higher collision deductible will lower your monthly premium, but a lower premium may leave you at risk in the event of an accident.
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Comprehensive coverage
It's important to note that comprehensive coverage does not cover damage caused by hitting another vehicle or object, as these incidents are covered under collision coverage. It also does not cover normal wear and tear on your vehicle, including items that need to be replaced over time, such as windshield wipers, filters, tires, brake pads, and belts.
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Uninsured motorist coverage
There are two main types of uninsured motorist coverage: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). UMBI helps pay medical bills for you and your passengers, while UMPD covers damage to your vehicle. In some states, a deductible may be required for UMPD coverage. Additionally, underinsured motorist coverage, which is often offered alongside uninsured motorist coverage, can provide additional protection if the at-fault driver's insurance is insufficient.
When purchasing insurance, it is essential to carefully review the policy to understand what is covered and what is excluded. Uninsured motorist coverage can give you peace of mind and financial protection in the event of an accident with an uninsured or underinsured driver.
It's worth noting that uninsured motorist coverage typically does not include mechanical breakdown insurance. If you want protection against mechanical failures, you may need to purchase separate mechanical breakdown insurance or rely on your car's warranty.
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Mechanical breakdown insurance
MBI is available for various vehicles, including cars, trucks, SUVs, and RVs. It is also available for both new and leased vehicles, as long as they are less than 15 months old and have less than 15,000 miles on the clock. The customer must also be the first owner of the vehicle.
MBI covers repairs to most original mechanical parts of the car, except for maintenance and wear and tear. This includes parts and labour for covered losses. Non-covered repairs can be done at the same time, but the customer will have to pay for those out of pocket. Additionally, MBI does not cover routine maintenance expenses, such as oil changes, tire rotations, or brake pad replacements.
MBI is often more comprehensive than a vehicle's extended warranty, as it covers mechanical issues more broadly and for a longer period. With MBI, customers can also choose their preferred repair shop, whereas extended warranties often require repairs to be done at specific dealerships. MBI is also usually cheaper than an extended warranty, as it is paid in installments rather than a large lump sum.
When purchasing MBI, customers can choose their deductible according to their budget and vehicle type. This is the amount the customer will have to pay before the insurance coverage kicks in.
MBI is a good option for those who want peace of mind and protection from unexpected repair costs. It provides an extra layer of protection that standard auto insurance does not offer.
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Manufacturer's warranty
A manufacturer's warranty is the automaker's guarantee that if problems occur within a certain period of time or number of miles, they will cover the cost of repairs. This type of warranty is typically included in the cost of a new car and can last for up to 3 years or 36,000 miles. Some vehicles also have a separate powertrain warranty, which covers the parts that make the car move, and this can last for up to 5 years or 60,000 miles.
It's important to note that a manufacturer's warranty will not cover damage from accidents or issues caused by abnormal use, such as racing or off-roading. It also doesn't cover normal wear and tear, such as the replacement of brake pads. Additionally, modifying your vehicle can void the warranty.
If you're looking for coverage for mechanical failures, you may need to purchase mechanical breakdown insurance, which is a separate type of policy. This type of insurance will cover mechanical issues that are not related to a covered peril, such as a car accident.
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Frequently asked questions
Auto insurance typically covers repairs to your vehicle if they're related to an accident. However, mechanical failure or malfunction is generally not covered unless you have special mechanical breakdown insurance coverage.
Mechanical breakdown insurance (MBI) covers the costs of breakdowns and repairs to essential components in your vehicle. It can be purchased as an add-on to your existing car insurance policy or as a standalone policy.
MBI covers any kind of breakdown, such as a blown motor or transmission problem. It's similar to an extended warranty but provides more flexibility in terms of mechanics and is usually cheaper.
If you have a high-value car, such as a luxury vehicle, or a new car without a warranty, MBI can be a good option to avoid costly repairs in the event of a breakdown or engine failure.
Not all insurance companies offer MBI, so you may need to shop around. The average cost will vary depending on the carrier, so it's worth getting quotes from multiple insurers to find the best rate.
