It’s a common question for car owners: does auto insurance cover the costs when your vehicle needs repairs? The answer isn’t always straightforward, as it largely depends on the type of auto insurance coverage you have and the nature of the damage. While typical auto insurance policies like liability, collision, and comprehensive are crucial for financial protection, they don’t always extend to every kind of vehicle repair.
Generally, standard auto insurance is designed to cover damages resulting from accidents, collisions, or specific incidents like theft or natural disasters. For instance, if you’re in a car accident, collision coverage can help pay for repairs to your vehicle, regardless of fault. Comprehensive coverage steps in for damages from events outside of collisions, such as hail damage or vandalism. However, these coverages are not designed to handle the costs associated with routine wear and tear or mechanical breakdowns.
For issues stemming from mechanical failures, like a failing transmission or engine trouble due to normal use, standard auto insurance typically will not pay for the repairs. This is where Mechanical Breakdown Insurance (MBI) becomes relevant. MBI is an optional, additional coverage designed specifically to address mechanical failures after your car’s warranty expires. It functions similarly to an extended warranty but is often offered by insurance companies.
Several providers offer MBI, each with varying terms and benefits. Here are a few top-rated options:
Top Mechanical Breakdown Insurance Providers
Geico: Best for Budget-Conscious Drivers
BBB Rating: A+
AM Best Financial Strength Rating: A++
Geico stands out for its strong customer service and excellent financial stability. Their MBI plans are available for new and leased vehicles less than 15 months old and with under 15,000 miles. Policies can be renewed for up to 7 years or 100,000 miles. After a $250 deductible, Geico MBI covers repair costs, including parts and labor, due to mechanical breakdowns.
Progressive: Best for Tech-Savvy Drivers
BBB Rating: A
AM Best Financial Strength Rating: A+
Progressive offers MBI in most states (excluding Indiana and New York). Their mechanical repair insurance provides benefits like $100 per day for trip interruption and $60 daily for rental car expenses. Deductible options range from $100 to $500, and payment plans include monthly or annual options. Progressive also allows you to lock in your MBI rate for up to three years.
American Family: Best for Family Policies
BBB Rating: A
AM Best Financial Strength Rating: A
American Family partners with ForeverCar to offer mechanical breakdown coverage. ForeverCar vehicle service contracts, available as subscription-based plans, typically range from $45 to $75 monthly. You can choose any repair shop and select a deductible up to $250 per service. Coverage extends to nearly all vehicle parts up to 105,000 miles, and powertrain coverage up to 225,000 miles. American Family auto policyholders may receive discounts on ForeverCar plans.
Conclusion
In summary, while standard auto insurance is essential for accident-related repairs, it generally does not cover mechanical breakdowns resulting from normal wear and tear. For protection against these types of repair costs, Mechanical Breakdown Insurance (MBI) is a valuable option. Providers like Geico, Progressive, and American Family (through ForeverCar) offer various MBI plans to suit different needs and budgets, helping car owners manage unexpected repair expenses. When considering how to protect yourself from vehicle repair costs, understanding the difference between standard auto insurance and specialized coverage like MBI is crucial.
