A standard car insurance
policy only covers vehicle repairs associated with an accident or another covered peril, such as natural disaster, theft, or vandalism. If your car breaks down on its own, the repairs typically won’t be covered by your insurance provider. Does car insurance cover repairs?
Car insurance covers repairs caused by unforeseen and accidental losses, such as a car accident, theft, or severe weather. However, it won’t cover routine maintenance or repairs for issues caused by normal wear and tear.
Why car insurance doesn’t cover repairs
A standard auto insurance policy won’t cover repairs not associated with a covered peril because some routine repairs are expected as part of the life of your vehicle. Because the loss is not due to chance, it’s a type of uninsurable risk. 1 Even the most reliable cars break down eventually through regular use. Crashes and “acts of God,” on the other hand, are random: statistically, most people will deal with at least one accident in their lifetime, but it’s not inevitable in the way that a 10-year-old car needing repairs is. Neither are natural disasters, vandalism, and other incidents covered by comprehensive insurance.
Insuring against all repairs would make car insurance prohibitively expensive. That’s why insurers focus on the risks that are most out of drivers’ control, like collisions, environmental hazards, and theft.
Perils covered by a car insurance policy
The following table lists common incidents covered by most car insurance policies, along with the type of coverage that deals with them.
| |
---|
Your car is damaged in a crash | The other party’s liability insurance |
| |
A pothole damages your suspension | |
A deer jumps in front of your car and smashes your headlight | |
A hit-and-run driver damages your car | Uninsured motorist property damage coverage (UMPD) |
| Towing and labor coverage (roadside assistance) |
Your engine malfunctions after a crash | |
Car repair insurance: Mechanical breakdown insurance (MBI)
While most car insurance policies won’t insure against repairs caused by regular wear and tear, some companies offer a product called mechanical breakdown insurance, or MBI.
Mechanical breakdown insurance is a full coverage add-on that plays a similar role to an extended warranty or vehicle service contract: it covers mechanical failures not covered by either your original manufacturer’s warranty or insurance. MBI coverage is typically a cheaper alternative to an extended warranty—but it comes with more limits.
New cars only: MBI coverage is typically only available for new cars. Progressive’s Vehicle Protection
can only be added to a policy for a car two years old or newer; GEICO
restricts coverage to vehicles less than 15 months old with under 15k miles. 23 Cheap add-on: On average, MBI adds about $100 per year to the cost of your insurance, though you’ll typically pay a deductible to use it. An extended car warranty can cost 10 times as much—or more.
Maintenance isn’t included: MBI coverage won’t cover routine maintenance. Oil changes, brake pads, tune-ups, and tires are still your responsibility.
The main difference between MBI coverage and an extended warranty is cost. Extended warranties can cost 10 times as much as MBI, and the added investment doesn’t typically pay off. A study by Consumer Reports in 2013 found that of drivers who purchased an extended warranty, only 45% ended up using that coverage—and they typically paid more than they got back in coverage, for an average net loss of $357. 4 Is mechanical breakdown insurance worth it?
Buying mechanical breakdown insurance is a gamble. If your vehicle sustains a serious mechanical breakdown, like an engine failure, the coverage could be well worth the price—but if your vehicle never encounters mechanical issues covered by MBI, you’ll be paying for nothing.
Because MBI is typically only available for newer vehicles with a low likelihood of major mechanical failures, adding MBI to your car insurance policy might not be worth the added expense. On the other hand, having this optional coverage could save you a significant amount of money if you’re unlucky enough to have a significant mechanical failure early in the life of your vehicle.
Ultimately, the gamble is up to you. If saving on insurance is your priority, it’s not irresponsible to forgo mechanical breakdown insurance—most policies don’t include it, and most car insurance companies don’t even offer it. However, if you’re more worried about avoiding steep out-of-pocket costs in the event of a major breakdown, MBI is an affordable route to peace of mind.
How to avoid unexpected car repair bills
Mechanical breakdown insurance can help to avoid steep out-of-pocket bills from your repair shop, but it could be a waste of money. Another way to lower the risk of surprise repairs is to practice routine maintenance
as recommended by your car’s manufacturer. With the cost of vehicle repairs rising sharply in 2024, staying on top of maintenance is more important than ever for car owners.5 Regular maintenance can help to extend the life of your car and prevent the types of repair bills that insurance won’t cover. FAQs
Will insurance cover engine failure?
Typically, car insurance does not cover engine failure unless you can prove that the failure was caused by a collision or another covered peril, such as vandalism or fire damage.
Does car insurance cover an oil leak?
Unless you can prove that it was caused by a collision or another covered peril, a standard car insurance policy won’t cover an oil leak.
Does insurance cover scratches on a car?
It depends on what caused the scratches and how serious they are. Collision insurance or uninsured motorist property damage coverage might cover major scratches and dents caused by a collision with another vehicle—but if you caused the scratches, or if the cost of repairs is less than your deductible, you may not be covered.
Does gap insurance cover engine failure?
No, gap insurance does not cover engine failure. Gap insurance covers the difference between a totaled car payout and the remaining balance on your auto loan, but it won’t recover mechanical repairs if your vehicle breaks down.
Should I get comprehensive insurance?
Most drivers need comprehensive insurance, which will cover damage or loss to your vehicle caused by non-collision perils like theft, animals, natural disasters, or vandalism. If you have a loan or lease on your car, your lender will likely require you to maintain comprehensive insurance.
How much does mechanical breakdown insurance cost?
The average cost of mechanical breakdown insurance is around $100 per year, although some plans may cost less.