Does Car Insurance Cover Repairs?
Making repairs to your vehicle can cost you time and money. Find out if car insurance covers repairs and alternatives to save you money on future repairs.
Read time
8 minutes
Date
12.19.2023
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Some of the most extensive and expensive car repairs happen after an accident. You rely on your car insurance or the at-fault party’s insurance (or a combination of both) to cover those expenses, so you’re not out hundreds to thousands of dollars. However, you might wonder if car insurance also covers basic repairs, routine maintenance, and mechanical failure. If so, you’re not alone.
FINN offers car insurance coverage by incorporating it into the monthly subscription fee. The same fee also includes registration, maintenance, and depreciation. With FINN, you can also choose the exact car you want to drive, down to the trim and color. Plus, FINN offers flexible terms to fit your lifestyle.
What repairs will car insurance cover?
Your car insurance premium entitles you to specific coverage when it comes to vehicle repairs. For instance, your premium covers repairing or replacing parts damaged in an accident where you were deemed not at fault. However, car insurance will also cover repairs under your policy's comprehensive and collision components. If your car was damaged due to weather events, theft, vandalism, or a collision with an animal, your insurance carrier will cover the repairs per your full coverage policy.
Does car insurance cover wear and tear?
Car insurance doesn’t cover damage due to normal wear and tear. You can only obtain coverage for repairs or replacements if they are part of an active insurance claim or covered incident. Payment for repair or replacement of components due to wear and tear that aren’t covered by an active claim must come from your own pocket.
Will insurance cover a rental if your car breaks down?
If you’re asking yourself if insurance will pay for a rental car during repairs, the answer is yes, as long as the repairs are associated with a covered claim. However, if your car breaks down on the side of the road without any accident, you may pay for a rental car out of your own pocket. Car insurance providers don’t cover wear and tear maintenance or vehicle breakdowns.
What if your car is damaged in an accident?
If your car is damaged in an accident, the responsibility of payment for any repairs boils down to the at-fault party. If you were at fault, you would need to call upon your own car insurance policy to complete repairs, but the opposite would be true if you weren’t at fault. In that case, the at-fault party’s insurance company would pay to repair or replace your car.
Will insurance help with non-accident repairs?
Car insurance doesn’t assist with non-accident-related repairs in the sense that it fails to cover basic maintenance such as:
- Oil changes
- Engine tune-ups
- Tire or wheel rotation or replacement
- Suspension repairs
- Bodywork
However, you can use your car insurance coverage for specific repairs if you have the appropriate coverage selected. For example, most car insurance companies let you add windshield replacement coverage with a corresponding deductible (often between $100 and $1,000). In contrast, if you pause your car insurance if you’re not driving and the car doesn’t want to start or has a flat tire, your insurance carrier won’t typically pay for the necessary maintenance.
What is car repair insurance?
Car repair insurance, or mechanical breakdown insurance (MBI), covers specific repairs on a new car during the first few years of a car’s life. You can purchase car repair insurance through your auto insurance carrier or a third-party vendor such as a dealership or auto club. Extended warranties and car repair insurance policies are dissimilar because car repair insurance only applies briefly, while extended warranties tend to cover the latter half of a car’s life. You also pay for extended warranties in a lump sum, while car repair insurance policies are due in installments.
Obtaining car repair or mechanical breakdown insurance can help you pay for repairs with minimal monthly payments, additional benefits like roadside assistance, and peace of mind. However, despite the additional benefits that sweeten the pot, most MBI policies have too many exclusions written into the fine print to cover everyday wear and tear issues that may arise. In addition, the policy may not pay for itself if you never use it to cover mechanical issues because you purchased and maintained a reliable vehicle.
Can your vehicle warranty cover repairs?
Your car warranty may cover basic repairs, depending on the terms and conditions. In most cases, covered repairs must be well-documented and meet specific eligibility requirements. It’s often not until you go to use your vehicle warranty that you find out what’s excluded and requires out-of-pocket payment on your part.
What does full coverage insurance mean?
Full coverage car insurance means you’ve opted for comprehensive and collision in addition to liability insurance coverage. The collision coverage part of full car insurance coverage includes coverage for necessary repairs due to colliding with another vehicle. Comprehensive coverage deals with any non-collision-related incidents, such as weather-related damages (i.e., natural disasters), vandalism, or theft.
Should your engine sustain damage in an event eligible for full coverage policy benefits, replacing it could be covered under the associated claim. However, full coverage insurance doesn’t automatically guarantee a brand-new engine. If that were the case, only certain engine components may have sustained damage, so the claim would only address those individual parts, not the entire engine.
What does MBI cover?
Mechanical breakdown insurance covers:
- Brake system, including brake pads and rotors
- Engine
- Steering components
- Air conditioning
- Drive axle
- Transmission
- Fuel systems
- Exhaust
- Cooling and heating systems
- Electrical systems
- Convenience components
- Safety technology
Most MBI policies have an average deductible between $250 and $400. Many auto insurance carriers offer MBI so long as your vehicle qualifies for coverage based on the carrier’s policies. As the car ages, MBI will eventually end and leave the financial responsibility of maintenance payments on your shoulders.
MBI vs. extended warranty protection
Mechanical breakdown insurance varies significantly from extended warranty protection in several ways. For instance, GEICO offers MBI for vehicles less than 15 months old or less than 15,000 miles. Terms last up to seven years or 100,000 miles, and coverage comes with a $250 deductible. MBI coverage includes “fair and reasonable charges” for parts and labor, and you can use any licensed repair shop unless the repair falls under a recall, warranty, or voluntary repair program.
Extended warranties aren’t a product you can purchase from your car insurance carrier. Instead, you must buy them through a dealership or third party. If you purchase an extended warranty from the dealership, they can roll the warranty cost into your financed amount. You can also compare costs and coverage levels by comparison shopping online to get the best deal.
Does car insurance cover repairs FAQs
Understanding the limits of your car insurance coverage can help you identify resources in the future should you need them. Below are some of the most common questions surrounding car insurance and repairs.
Will insurance cover engine failure?
Insurance will not cover engine failure. Should the engine fail as part of an accident, most insurance companies will deem the car a total loss instead of replacing it since it’s one of the more expensive vehicle components. Many mechanical breakdown insurance policies and manufacturer warranties cover engine failure.
What is a deductible?
A deductible represents your financial responsibility should you make an insurance claim. Adding a driver to your insurance policy doesn’t require a deductible, but adding windshield coverage often does. If you have windshield coverage and want to use it to replace a windshield, you would pay the corresponding deductible before repairs can be made.
What are the typical exclusions in a mechanical breakdown insurance policy?
MBI typically doesn’t include normal wear and tear or regular maintenance. Exclusions also include older vehicles that don’t meet the age or mileage requirements dictated by the insurance carrier. Most mechanical breakdown insurance policies kick in if and when a freak breakdown occurs.
Is car repair insurance worth the cost?
The cost of car repair insurance can either offset maintenance fees or act as yet another vehicle expense to cover. Car repair insurance isn’t worth the additional cost if you have an active warranty, as bumper-to-bumper and powertrain warranties typically cover most high-wear components. However, you should consider your financial situation and if you can cover an expensive repair should it pop up.
The first step is figuring out if your car is even eligible for car repair insurance. Deciding between car repair insurance and an extended warranty can present a baffling choice. Either is preferable to paying for car repairs or replacements out of your own pocket.
Final thoughts
Stressing about car insurance coverage can have you worried about repairs down the road. Most car insurance carriers don’t offer everyday wear and tear coverage, but even car repair insurance, such as mechanical breakdown insurance, may not cover component repair or replacement. Yet, when purchasing coverage for an expensive mechanical breakdown, the right coverage can help save you thousands of dollars.
You can also save money by subscribing to a massive car fleet like FINN’s. When you subscribe to a FINN vehicle, you have the convenience and flexibility of choosing your terms, from the monthly mileage you need to the length of subscription that fits your lifestyle. FINN also folds several car ownership costs (such as maintenance, registration, insurance, and depreciation) into a single subscription fee so you can rest easy you’re ready to go the next time you get behind the wheel.
Final thoughts
Stressing about car insurance coverage can have you worried about repairs down the road. Most car insurance carriers don’t offer everyday wear and tear coverage, but even car repair insurance, such as mechanical breakdown insurance, may not cover component repair or replacement. Yet, when purchasing coverage for an expensive mechanical breakdown, the right coverage can help save you thousands of dollars.
You can also save money by subscribing to a massive car fleet like FINN’s. When you subscribe to a FINN vehicle, you have the convenience and flexibility of choosing your terms, from the monthly mileage you need to the length of subscription that fits your lifestyle. FINN also folds several car ownership costs (such as maintenance, registration, insurance, and depreciation) into a single subscription fee so you can rest easy you’re ready to go the next time you get behind the wheel.
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