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One of the main purposes of your car insurance is to help cover the cost of repairs when your car is damaged in an accident, due to theft or vandalism, or by natural disasters. As this list suggests, standard auto insurance doesn’t cover the cost of all repairs, like those caused by normal wear and tear.
As a policyholder, you’ll want to understand what is covered and what isn’t so you know where to turn when your car needs some TLC.
Key Points
• Car insurance typically covers repairs from accidents, theft, vandalism, and natural disasters.
• Routine maintenance, wear and tear, and intentional damage are excluded from standard coverage.
• Accidents should be documented with photos, videos, and, potentially, police reports for claims.
• The claims process involves filing with the insurer, an assessment, and approval of repair costs.
• Mechanical breakdown insurance is an option for covering repairs in older vehicles.
When Insurance Covers Repairs (and When It Doesn’t)
Typically, your car insurance can cover repairs from damage that’s sudden or accidental, such as a car accident or hailstorm. But it’s likely your insurance will deny other types of claims.
| Covered by Auto Insurance | Not Covered by Auto Insurance |
|---|---|
| Collision | Routine maintenance |
| Theft | Normal wear and tear |
| Vandalism | Mechanical breakdowns/poor maintenance |
| Natural disaster | Intentional damage by owner |
Here’s a closer look at what your car insurance covers.
Repairs Covered by Collision and Comprehensive Policies
So, how does your car insurance work? First, it likely comprises several different types of coverage. Through your collision coverage, insurance should pay for repairs for damage caused during a collision with another vehicle, an animal, or stationary objects, such as a tree or guardrail.
Through comprehensive insurance, you should also be covered if your car is stolen or intentionally damaged by another person in an act of vandalism. Damage that occurs during natural disasters, such as fire, floods, hail, or falling debris, is also covered under this type of policy.
Recommended: What Does Liability Auto Insurance Typically Cover?
Repairs Not Covered by Insurance
There’s a long list of things that you shouldn’t expect your insurance to cover. Routine maintenance and general wear and tear are not covered by standard auto insurance. Neither are mechanical breakdowns, such as a failing transmission, or damage done through lack of maintenance, like failing to change your oil. Unfortunately, you’ll have to pay for these repairs on your own.
It may also go without saying that damage you do purposefully to your vehicle is not covered. And if you damage your car while using it for business purposes or performing an illegal activity, your insurance may deny you as well.
What Happens If a Mechanic Damages Your Car?
Your car insurance likely won’t cover mechanic negligence if your car is damaged when a mechanic is making a repair. Typically your first recourse would be to ask the mechanic or garage to make things right by fixing the damage. The costs may be covered by their liability policy.
If they’re unwilling or unable to do so, you might want to try to file a claim with the mechanic’s liability insurer. You can check with your own insurer to see if they’ll help or if you can file a claim with them, too. However, it’s likely that your insurer will cover only certain types of damage — from covered perils.
Something else to check before you file is whether filing will endanger any no-claims discount you might have. Since you would presumably not be at fault, you might be able to retain the benefit, but it’s best to find out in advance.
Understanding Your Deductible’s Role in Repairs
Your collision and comprehensive insurance policies may have a car insurance deductible. This is the amount of money you’ll have to pay before the insurance kicks in. For instance, say a tree branch falls on your car, causing $1,500 in damage. If you have a $500 deductible on your comprehensive policy, you’ll need to pay that first, and your insurance should pay the remaining $1,000.
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What About Mechanical Breakdowns?
There is optional coverage generally available that can provide further protection. Mechanical breakdown insurance (MBI) can help protect you from unexpected repairs and breakdowns after your manufacturer’s warranty expires. It’s usually offered as an add-on to your existing insurance policies, but there are also third-party providers who may sell it as a standalone policy.
How This Separate Coverage Fills the Gaps in Standard Policies
Standard policies don’t cover breakdown-related repairs. If you have MBI, it will step in and cover the cost of mechanical failures in major systems such as the engine, transmission, steering, axles, fuel systems, and electrical system. There is typically a deductible that you’ll need to pay first before this add-on kicks in.
Some MBI policies may even include coverage for roadside assistance, which could cover you if your car has to be towed or you’re locked out or your car needs to be jumped. If you’re stranded somewhere far from home, MBI may even cover the cost of lodging or renting a temporary replacement vehicle.
Note that MBI doesn’t cover routine maintenance like oil changes, tune-ups, or brake pads.
Who Should Consider This Type of Coverage?
You might want to consider getting MBI if your car is no longer under factory warranty, since typically your factory warranty should cover the cost of mechanical breakdowns as long as it’s valid. You might also be offered an extended warranty, but it’s worth checking whether mechanical breakdown insurance is cheaper than this option. In general, MBI costs around $100 per year. An extended warranty by comparison, typically costs between $600 and $1,000 per year on average, though it can go to $8,000 or more, depending on factors like the car’s make and year and what exactly the warranty covers.
If you plan to keep your car for a long period of time, MBI may be worth considering, as the likelihood of breakdowns increases as your vehicle ages. Additionally, if you don’t have a high tolerance for risk and you’re worried about large bills for major repairs, this coverage might be worth exploring.
Recommended: How Much Auto Insurance Do You Really Need?
The Process: Filing a Claim for Car Repairs
When covered damage does occur, whether through your standard policies or MBI, you’ll need to file a claim with your insurance company. Your insurer will determine whether the damage is covered and how much it’s willing to pay for the repair.
Steps to Take After Covered Damage Occurs
When damage occurs to your vehicle, your first step should be to document the incident. If the accident involves another driver, get their name, phone number, and insurance information. Take down information about their vehicle as well, including the make, model, and license plate number. And if there were any witnesses, take down their contact information as well.
Take pictures and videos to document the scene of the accident. This will help show what damage was done to your car and to the other person’s vehicle, and it can help capture what the weather and road conditions were like at the time of the accident. It can also be a good idea to get a police report, which can help the claims process move more quickly.
Next, call your insurer and file a claim. You’ll need to provide your policy number, the details of the incident, and the police report, if you have one. An insurance adjuster will then investigate the damage and liability. You’ll likely need to send them the information you gathered documenting the accident.
The adjuster may assess the damage to your vehicle in person or they may have you take your car to a repair shop, which will assess them.
Working With Your Insurer and Repair Shop
After you file a claim, your next step is to get a repair estimate from a body shop. Your insurance company may recommend shops or you can go to the shop of your choosing. You can then submit this estimate to your insurance company.
Next, an adjuster may need to review the estimate and compare it to their own assessment of the damage. If the estimates are similar, your insurer will likely approve the cost. If they’re not, you may need to get additional estimates from other body shops.
Once the estimate is approved, the body shop can start making the repairs. Your insurer may pay the shop directly or issue a payment to you, minus your deductible.
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The Takeaway
Does car insurance cover repairs? Your insurance will usually cover the cost of repairs to damage done in an accident or other covered incidents. But it may not cover repairs for mechanical issues or general wear and tear. For that kind of coverage, you might consider mechanical breakdown insurance, which can help pay for certain types of mechanical issues after your vehicle warranty has expired. To help you decide if this coverage makes sense for you, it may be a good idea to review your policy so you understand what it covers and when you might need to be prepared to pay for a repair out of pocket.
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FAQ
Does car insurance cover normal wear and tear on my vehicle?
Car insurance can cover many repairs, but it does not cover normal wear and tear on your car, so it’s a good idea to be prepared to cover these expenses yourself. The good news is that they tend to be predictable, so it may be worth establishing a separate savings account to cover your auto repairs.
What’s the difference between collision and comprehensive coverage for repairs?
Collision insurance covers damage to your vehicle caused by a collision with another car or an object. Comprehensive coverage protects you in the event of damage not caused by a collision, such as theft, vandalism, animal damage, and natural disasters.
Will my insurance pay for an engine or transmission failure?
Your standard insurance will typically not pay for engine or transmission failure other than damage incurred during an accident. However, a mechanical breakdown insurance (MBI) policy may cover these costs.
Do I have to use the repair shop my insurance company recommends?
Insurance companies may have a list of repair shops they recommend, but you don’t have to use those options. You can take your car to your own trusted mechanic.
What is mechanical breakdown insurance, and is it worth it?
Mechanical breakdown insurance (MBI) helps cover unexpected mechanical and electrical issues after your vehicle warranty has expired. It’s often cheaper than an extended warranty and may be worthwhile if you plan to keep your vehicle for a long time.
Is a mechanic liable if they damage my car during a repair?
Yes, generally the mechanic or garage is liable. If your vehicle is damaged during a repair, they may fix it or their liability insurer may pay for it to be fixed. If they refuse to fix the damage or are uninsured, your next recourse would be small claims court.
photo credit: iStock/koldo studio
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