Car repairs can be unexpected and costly, leaving many car owners wondering if their car insurance will help foot the bill. Understanding what car insurance typically covers—and more importantly, what it doesn’t—is crucial for financial preparedness. This article will clarify whether your standard car insurance policy covers repair costs and explore alternative options that can protect you from mechanical breakdown expenses.
Standard auto insurance policies, such as liability, collision, and comprehensive coverage, are designed to protect you from specific incidents. Collision coverage typically kicks in when your car is damaged in an accident with another vehicle or object. Comprehensive coverage, on the other hand, usually covers damages from events outside of collisions, like theft, vandalism, or natural disasters. However, these policies generally do not cover repairs resulting from normal wear and tear, mechanical failures, or breakdowns. Think of it this way: car insurance is designed for accidents, not for aging parts.
For those concerned about mechanical repair costs, there are specialized insurance products available. Mechanical Breakdown Insurance (MBI), also sometimes referred to as car repair insurance, is specifically designed to cover repairs to mechanical parts of your vehicle. Unlike a standard warranty, MBI can often be purchased at any time, though it’s typically more affordable for newer, lower-mileage vehicles.
Several reputable insurance companies offer MBI. Here are a few top-rated providers:
1. Geico: Best for Budget-Conscious Drivers
Better Business Bureau (BBB) Rating: A+
AM Best Financial Strength Rating: A++
Geico stands out for its affordability and robust coverage options. Their MBI plans are available for new and leased vehicles less than 15 months old with under 15,000 miles. Policies are renewable for up to seven years or 100,000 miles. After a $250 deductible, Geico MBI covers repair, parts, and labor costs due to mechanical breakdowns. Geico’s strong financial ratings and customer service further solidify its position as a top choice for drivers seeking budget-friendly repair cost coverage.
2. Progressive: Best for Tech-Savvy Drivers
BBB Rating: A
AM Best Financial Strength Rating: A+
Progressive is known for its technological innovation and comprehensive MBI coverage, available in most states (excluding Indiana and New York). Progressive’s mechanical repair insurance benefits include trip interruption coverage ($100/day) and rental car reimbursement ($60/day). Drivers can customize their plan with deductibles from $100 to $500 and choose between monthly or annual payments. A key advantage with Progressive is the option to lock in your MBI rate for up to three years, providing cost predictability.
3. American Family: Best for Family Policies
BBB Rating: A
AM Best Financial Strength Rating: A
American Family Insurance partners with ForeverCar to offer mechanical breakdown insurance through vehicle service contracts. These subscription-based plans, typically ranging from $45 to $75 monthly, provide extensive coverage. ForeverCar allows you to choose any repair shop and offers deductibles up to $250 per service. Coverage is comprehensive, including nearly all vehicle parts up to 105,000 miles, with powertrain coverage extending to 225,000 miles. American Family customers also benefit from discounts on ForeverCar plans, making it a family-friendly option for repair cost protection.
In conclusion, while standard car insurance generally does not cover repair costs from mechanical breakdowns or wear and tear, Mechanical Breakdown Insurance is a viable option for drivers seeking to protect themselves from these expenses. Companies like Geico, Progressive, and American Family offer robust MBI plans with varying features to suit different needs and budgets. Exploring these options can provide peace of mind and financial security against unexpected car repair bills.
