Car Insurance Pay For Repairs – While traditional car insurance can help cover the costs of many repairs, unfortunately there is no maintenance car insurance. You are responsible for routine maintenance costs such as oil changes, tire changes and engine tune-ups.
However, traditional car insurance covers expenses related to natural disasters and accidents. You can also add optional car repair insurance to your plan for extra protection, and an extended warranty can help cover maintenance costs.
Car Insurance Pay For Repairs
Before choosing a vehicle, make sure you understand all the costs associated with owning a car so you don’t end up taking care of more than you can afford. If it is a routine maintenance, the insurance companies will not charge the bill.
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However, it pays to understand who pays what under your auto insurance plan so you never end up paying more than your fair share of car maintenance and repairs. Exploring all the options can also provide some smart ways to get a third party to cover maintenance through your car warranty.
While service car insurance is not an option, car repair insurance is. This type of insurance is called mechanical breakdown insurance or MBI. You can add MBI to many traditional auto insurance policies to provide you with additional protection for situations that are not caused by an accident or natural disaster.
Although it does not cover damage caused during an accident, an optional MBI policy can help pay for car repairs in other situations. You can add an MBI endorsement or rider to your existing policy if this type of coverage is allowed and offered by your insurance provider. If your current provider doesn’t offer an MBI policy, consider comparing coverage from other auto insurance companies to find the one that best suits your needs.
Most MBI policies have a deductible. Once you’ve paid this deductible, your carrier will pay the cost of covered auto repairs. Keep in mind that this extra protection comes with low mileage requirements. If you drive an older vehicle, you probably won’t qualify for this extra coverage.
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Each year, about 30 million people call AAA for roadside assistance due to an unexpected breakdown. If a major mechanical breakdown occurs, you may not have the money to cover an expensive overhaul. An optional MBI policy can help pay for the repair or replacement of the following components.
According to Policygenius, most MBI policies do not cover regular maintenance for wearable systems. This means you are not covered for mechanical problems such as:
Each plan is unique, so you should carefully review any applicable service agreements before signing up for coverage.
While you can’t get car insurance to cover your maintenance and normal wear and tear, you can sign up for an extended warranty that can cover those costs. You can get an extended warranty from the vehicle manufacturer when the manufacturer’s warranty expires, or you can get it from a third-party service provider. An extended car warranty usually covers routine maintenance, including:
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If you are considering an extended warranty, it is important to compare the cost of the warranty with the cost of maintenance. It’s a lot like pre-paying for a car’s routine maintenance needs. However, extended warranties usually come with additional benefits that pay off when you need to get your car repaired or your vehicle is subject to excessive wear and tear.
Every plan is different, so it’s important to compare your options and read the fine print before signing up for an extended warranty. Some providers will force you to pay for the warranty upfront, while others may extend it from four to 36 months. If you feel confident about having your car service covered, an extended warranty is as close as you can get to service car insurance.
Not all vehicles qualify for extended warranty plans. An extended warranty is best purchased as soon as the manufacturer’s warranty expires. If you wait until your vehicle ages, you may no longer qualify.
Most warranty providers require a full service history to demonstrate that you have followed all manufacturer requirements throughout the life of your vehicle. If you regularly skip oil changes or tire changes, you probably won’t be able to get an extended warranty.
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Extended warranties also apply mainly to younger vehicles with a limited number of kilometers. The lower your mileage, the better your chance of being approved for an extended warranty. If you have a vehicle with low mileage, you can also enjoy a lower warranty price.
Many new cars today have the option of extending the factory warranty. Even if they don’t, you can still purchase extended warranty coverage from multiple providers independently. If you have a warranty, do you still need MBI coverage? While the two programs share some similarities, their main differences are:
If you’re looking for an option that works like car maintenance insurance, your best bet is either MBI or Extended Warranty. When designing the right plan for your needs, you should consider:
If you are involved in a car accident or if your car is damaged in a non-driving accident such as a hail storm, neither the MBI policy nor the extended warranty will help you. Then collision and comprehensive insurance come into the picture. Once you’ve met your deductible, your insurer will pay for the cost of repairing your car. If you financed or leased your new vehicle, your lender will require you to carry collision and comprehensive insurance.
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If you’re in a car accident and you’re at fault, your liability insurance will pay for the other person’s car. Most states require this type of coverage as part of their minimum coverage. If you’re not sure what type of insurance you need to carry or what you currently have, contact your auto insurer. Most insurance companies are happy to help you navigate the ins and outs of your insurance policy and find the coverage that best suits your needs.
If you bought a mechanical warranty when you bought your new car, you may already have protection against a mechanical breakdown. Mechanical warranties are often cheaper than MBI policies.
However, their scope is more limited and their eligibility periods are shorter. You can pay for the warranty as a one-time payment when you buy the car. If you need to make monthly payments, it may be possible to finance your mechanical warranty, but you will have to pay interest on the balance.
Although car maintenance insurance is not an option, alternative forms of insurance such as car repair insurance policies or extended vehicle warranty can give you the support you need to manage vehicle costs.
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Weigh your options and read the contracts carefully to find the best fit for your situation. Before making a decision, it’s a good idea to compare service contracts from multiple providers for both types of plans so you can determine the best option for you, your vehicle, and your budget.
Steve Glass is a retired insurance professional with over 34 years of experience in the property and casualty insurance industry. During his career, he led teams handling homeowner and business property and casualty claims, auto medical claims, auto personal injury claims, catastrophe claims and insurance transfer claims. He also has experience as an insurance transfer arbitrator.
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Auto insurance doesn’t cover regular mechanical repairs, but it can help cover the cost of repairs if the damage is caused by a collision or another covered incident, such as theft or fire. Continue to article.
Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. He is passionate about making insurance topics understandable to people and helping them make better financial decisions. When she’s not writing, you can find her reading a book or watching anime.
Laura is an award-winning editor with experience in auto insurance and personal finance content and communications. He has written for several media outlets, including the USA Today Network. He most recently worked in the public sector at the Nevada Department of Transportation.
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