Does Car Insurance Cover Repairs?
Standard car insurance only covers sudden, accidental damage to your vehicle, such as from a crash, vandalism or severe weather. Unfortunately, many vehicle repairs are caused by car parts breaking down over time. A regular car insurance policy won’t cover these repairs.
One solution to this is to get car repair insurance. It often covers both mechanical breakdowns and some wear and tear.
What repairs does car insurance cover?
A standard liability car insurance policy covers damage you cause to others in an accident. If you have full coverage car insurance, which adds collision Collision covers damage to your car from a collision with another vehicle or object. and comprehensive Comprehensive covers your car for theft and damage from non-collision causes, like fire, flood and vandalism. , it also covers damage to your own vehicle due to an accident.
If your engine fails because of age, neither of these policy types will cover it. For that, you’ll need something like car repair insurance.
What is car repair insurance?
Car repair insurance covers issues that aren’t related to an accident. If your engine dies, or if your air conditioning stops working, standard car insurance will not cover it. Car insurance only covers sudden and accidental damage.
Car repair insurance fills this gap in coverage. It handles mechanical issues your car may develop over time. Car repair insurance shouldn’t be confused with an extended warranty. Car repair insurance has eligibility points that need to be met, such as the age of the car.
How does car repair insurance work?
Car repair insurance covers repairs needed because of mechanical breakdown or failure, rather than accident-based damage like standard car insurance covers.
If some part of your vehicle stops working and it’s covered by your car repair insurance policy, you file a claim with your car repair insurer and pay your deductible. Your policy will then reimburse you for the remainder of the claim amount up to your limit.
What does car repair insurance cover?
Car repair insurance covers the repair of many vehicle parts and systems, such as:
- Air conditioning
- Drivetrain
- Electrical and onboard computer systems
- Engine
- Exhaust system
- Fuel system
- Heater
- Steering
- Transmission
Overall, a car repair insurance policy should cover most repairs to your vehicle’s systems, minus any exclusions listed in your policy.
Car repair insurance exclusions
Car repair insurance doesn’t cover damage due to an accident. It also doesn’t cover maintenance, such as oil changes and tune ups. Maintenance is considered part of the due diligence of the car owner.
Corrosion and other natural damage isn’t covered, either. Nor is standard wear and tear to parts like tires and drive belts. Damage caused by improper maintenance also is not covered by car repair insurance.
Car repair insurance only covers mechanical issues. This means that damaged car seats and cosmetic damage are not covered.
If a part of your car has been recalled for any reason, it will not be covered by a car insurance repair policy. Damage that happened before you bought the policy is also excluded.
How do I get car repair insurance?
Car repair insurance is only available through some car insurance companies. However, your car will need to meet certain requirements for you to get it.
Car repair insurance is usually only available for new cars, and then only if they’re a year or two old. Getting it for an older or used car is rare, and it’s often expensive if you can find it.
Your car’s mileage is another factor. Companies that offer car repair insurance usually only cover vehicles that have below a set mileage limit. Geico, for example, only offers and maintains car repair coverage for cars that are under 100k miles or seven years old.
Some companies also require you to have full coverage car insurance before they’ll sell you car repair insurance.
Companies that offer car repair insurance include:
Car repair insurance vs. car warranty
While a car repair insurance policy may seem similar to an auto warranty, there are some major differences. For example, car repair insurance is an optional purchase, while a warranty comes with the car. Also, only car insurance companies offer car repair insurance. After the warranty on your car expires, you can renew it through your dealership or a third-party company.
A car repair insurance policy is nontransferable, while a warranty can be transferred if you sell the car. Also, if you change car insurance companies, your new insurer may not offer car repair insurance. An extended warranty can be bought from your vehicle’s dealership or many third-party companies.
With a car repair insurance policy, you’ll need to file a claim with your insurer before taking your car to a repair shop. With a warranty, you take your car to the shop and let them know your warranty info.