Car repairs can be a significant financial burden for vehicle owners. When unexpected breakdowns or accidents occur, understanding what costs your auto insurance policy will cover is crucial. Many drivers wonder, “is car repair covered by insurance?” The answer isn’t always straightforward and depends heavily on the type of insurance coverage you have and the nature of the damage to your vehicle. This article will explore the different types of insurance that may cover car repairs, helping you navigate the options and understand when you can rely on your insurance to help with repair costs.
Generally, standard auto insurance policies, like liability coverage, will not pay for repairs to your own vehicle. Liability insurance primarily covers damages you cause to others and their property in an accident where you are at fault. To get coverage for repairs to your car, you typically need to have specific types of coverage beyond basic liability. These usually include collision coverage, comprehensive coverage, and mechanical breakdown insurance.
Collision Coverage: This type of insurance kicks in when your vehicle is damaged in a collision with another vehicle or object. It doesn’t matter who was at fault; if you have collision coverage, your insurance will help pay for repairs to your car resulting from the accident. For example, if you hit another car, a tree, or a guardrail, collision coverage would likely apply, minus your deductible.
Comprehensive Coverage: Comprehensive coverage, often referred to as “other than collision” coverage, protects your vehicle from a wide range of damages that are not related to collisions. This can include damage from theft, vandalism, natural disasters (like hail, floods, or storms), fire, and animal damage. If your car is damaged by a falling tree branch or is vandalized, comprehensive coverage would likely cover the repairs, again, after you pay your deductible.
Mechanical Breakdown Insurance (MBI): While collision and comprehensive cover damages from accidents and external events, Mechanical Breakdown Insurance (MBI) is designed to cover repairs resulting from mechanical failures. This is different from a manufacturer’s warranty, which usually comes with a new car and covers defects for a limited time. MBI, on the other hand, can cover repairs for breakdowns that occur after your car’s warranty expires, relating to parts like the engine, transmission, or other vital mechanical components. It’s important to note that MBI is not the same as extended warranties offered by dealerships, though they serve a similar purpose.
Several insurance companies offer MBI, and their plans can vary in terms of coverage, cost, and benefits. Here are a few top-rated insurers known for their Mechanical Breakdown Insurance options:
1. Geico: Best for Budget-Conscious Drivers
Geico is highly rated for customer service and financial stability, making it a popular choice for various insurance needs, including MBI. Geico’s Mechanical Breakdown Insurance is available for new cars and leased vehicles that are less than 15 months old and have fewer than 15,000 miles. A key feature of Geico’s MBI is the option to renew it for up to seven years or 100,000 miles, providing long-term protection against unexpected mechanical failures. After a $250 deductible, Geico’s MBI covers the cost of repair, parts, and labor related to mechanical breakdowns.
2. Progressive: Best for Tech-Savvy Drivers
Progressive’s Mechanical Repair Insurance is accessible to drivers in most states (excluding Indiana and New York). Progressive stands out by offering additional benefits with their MBI, such as $100 per day for trip interruption and $60 per day for rental car costs, which can be very helpful if a breakdown occurs while traveling. Customers can customize their plan by choosing deductibles between $100 and $500 and selecting between monthly or annual payment options. Progressive also allows you to lock in your MBI rate for up to three years, providing price stability.
3. American Family (partnered with ForeverCar): Best for Family Policies
American Family Insurance partners with ForeverCar to offer Mechanical Breakdown Insurance through vehicle service contracts. ForeverCar plans are subscription-based and generally range from $45 to $75 per month. A notable advantage of ForeverCar, especially through American Family, is the flexibility to choose any repair shop for service. They offer a deductible of up to $250 per service. ForeverCar plans provide extensive coverage, including nearly all vehicle parts up to 105,000 miles, and powertrain coverage up to 225,000 miles. American Family auto policyholders may also receive discounts on ForeverCar plans, making it an attractive option for existing customers.
What is Typically Not Covered by Car Insurance?
While insurance can cover many car repair scenarios, it’s important to understand what is generally not covered. Normal wear and tear, routine maintenance (like oil changes, tire rotations, and brake pad replacements), and damage resulting from neglect are typically excluded from all types of car insurance, including MBI. Insurance is designed for unexpected and accidental damages or failures, not for predictable maintenance or damage caused by not maintaining your vehicle properly.
Conclusion:
So, is car repair covered by insurance? Yes, it can be, depending on the type of coverage you have and the cause of the damage. Collision and comprehensive coverages are essential for accident-related and external damage repairs, while Mechanical Breakdown Insurance provides crucial protection against mechanical failures, especially as vehicles age beyond their initial warranties. Understanding these different types of insurance and what they cover will help you be better prepared for unexpected car repair costs and ensure you have the right protection for your vehicle and your financial well-being. Always review your specific insurance policy to understand the exact details of your coverage and any exclusions.
