Does Car Insurance Cover Mechanical Problems?
Unsure if car insurance covers mechanical issues? Understand coverage limits and discover how to protect your vehicle from costly breakdowns.
Car insurance primarily protects against unforeseen events like accidents, theft, or natural disasters. Many wonder if it covers mechanical problems, which are distinct from accidental damage. Standard auto insurance typically excludes internal vehicle malfunctions. This article explains standard coverage, why mechanical issues are generally excluded, alternative protection options, and practical steps to take during a breakdown.
What Standard Car Insurance Covers
Standard car insurance policies cover damages and losses from specific, unpredictable incidents. Liability coverage, mandatory in most states, helps pay for injuries to others and damage to their property if you are at fault in an accident. This coverage protects your assets from third-party claims.
Collision coverage helps repair or replace your vehicle if damaged in a collision with another vehicle or object, or if it rolls over. Comprehensive coverage protects against non-collision events such as theft, vandalism, fire, falling objects, and natural disasters. Lenders often mandate these coverages for car loans or leases.
Additional coverages like personal injury protection (PIP) or medical payments coverage (MedPay) assist with medical expenses for you and your passengers after an accident. Uninsured/underinsured motorist coverage provides protection if you are involved in an accident with a driver who lacks sufficient insurance. These policies focus on external forces and unexpected events that cause damage or injury.
Why Mechanical Problems Are Not Covered
Standard car insurance policies typically do not cover mechanical failures, wear and tear, or issues from routine maintenance. Insurance mitigates financial risks from sudden, accidental, and external events. A mechanical breakdown is an internal failure of vehicle components, often due to age, consistent use, or manufacturing defects.
Mechanical issues are often predictable over a vehicle’s lifespan or stem from a lack of maintenance. For instance, a blown engine or transmission failure not caused by an accident would not be covered. Insurance providers view these problems as part of a vehicle’s operational lifecycle or related to product quality.
If a mechanical problem leads to an accident, insurance covers the collision damage, not the initial mechanical failure itself. For example, if brake failure causes a crash, the policy addresses collision damage, but not the cost of replacing the faulty brakes. This exclusion ensures insurance remains focused on accidental loss rather than ongoing maintenance or inherent component wear.
Coverage Options for Mechanical Issues
For vehicle owners seeking protection against mechanical failures, several alternative options exist outside standard auto insurance. A manufacturer’s warranty, or factory warranty, is included with new vehicles. It covers defects in materials or workmanship for a specific period, typically three years or 36,000 miles for bumper-to-bumper coverage and five years or 60,000 miles for powertrain components. This warranty ensures the manufacturer pays for repairs if a covered part fails due to a defect.
Extended warranties, often called vehicle service contracts, are optional products purchased separately to cover repairs after the manufacturer’s warranty expires. These contracts can be bought from dealerships or third-party providers and vary in scope, sometimes including roadside assistance or rental car reimbursement. They provide a financial safeguard against unexpected repair costs as a vehicle ages.
Mechanical Breakdown Insurance (MBI) is another option, offered by some insurance companies as a standalone policy or an endorsement to an existing auto policy. MBI specifically covers repairs for unexpected mechanical and electrical malfunctions not caused by accidents or routine maintenance. While similar to extended warranties, MBI can be more affordable, offer flexible payment options, and allow policyholders to choose their repair facility.
Responding to a Mechanical Breakdown
When a mechanical problem occurs, prioritize safety. Move the vehicle to a safe location if possible, engage hazard lights, and remain inside if on a busy road. Call for roadside assistance or a tow service to transport the vehicle to a repair shop. Many auto insurance policies offer roadside assistance as an add-on, or it may be included with an extended warranty or service contract.
Once the vehicle is at a service center, obtain a professional diagnostic to understand the exact nature and cause of the problem. Check if the vehicle is still under its original manufacturer’s warranty or any extended warranty or Mechanical Breakdown Insurance policy. These coverages can significantly reduce or eliminate out-of-pocket repair costs.
If the repair is not covered by a warranty or MBI, obtain detailed estimates from a trusted mechanic. On average, vehicle owners spend around $1,452 annually on maintenance and repairs, and it is prudent to budget approximately $50 to $100 per month for these potential expenses. If significant repairs are needed and not covered, consider discussing financing options with the repair shop or exploring personal loans to manage the expense.