When your vehicle is damaged, it helps to know if your auto insurance policy covers repairs. However, repair coverage depends on the type of repair needed and the cause of the problem. Unless the problems are specifically caused by covered incidents such as accidents, vandalism or bad weather, auto insurance will not pay for repairs.
The good news is that some car insurance companies offer optional add-ons to cover a wide range of vehicle repairs. These policies often also cover parts and labor, which can create significant savings in the long run.
In this article, our home media review team will look at what standard car insurance policies cover and how you can add more protection. We have also classified the best car insurance companies to help you evaluate your auto coverage options.
Basic Types of Car Insurance
Most states require drivers to have some level of auto insurance. In states that require coverage, minimal liability insurance is usually all you need. This means that you only need to carry enough insurance to cover property damage and the costs of injury to other drivers in accidents you cause. However, automobile liability insurance does not cover repairs to your vehicle.
To protect your car against certain types of damage, you’ll want to consider adding comprehensive and collision coverage to your policy.
- Full coverage: This type of insurance protects you against damage caused by vandalism, theft, natural disasters and other acts of nature. It also covers damage caused by hitting an animal or rodents chewing through your car’s wiring.
- Collision coverage: Collision protection covers damage to your car caused by any accident, regardless of who is at fault. Whether it’s a collision with a car, tree, fence or railing or damage caused by a road hazard like a pothole, you will be covered by collision insurance.
Standard auto insurance generally does not cover the cost of repairs related to common wear and tear or mechanical breakdowns. However, some companies offer additional coverage options that may cover these costs.
Car repair insurance
Although comprehensive and collision coverage can save you significant costs, it won’t help you in the event of a mechanical breakdown. This is where Auto Repair Insurance, often referred to as Mechanical Breakdown Insurance (MBI), comes in handy.
It’s important to note that not all auto insurance providers offer MBI, and those that do often have limitations on when it can be purchased. You may be limited to purchasing MBI when your vehicle is below a certain age or mileage level.
MBI vs Extended Warranty Coverage
MBI is similar to a extended car warranty as it covers many of the same components. Although MBI does not cover the replacement of wear items like brake pads, spark plugs, filters or tires, it does help pay for repairs to key engine components and a host of other essential parts. in case of failure.
You’ll have more purchasing flexibility with an extended warranty than with MBI. For an extended manufacturer’s warranty, you usually have at least until your factory warranty expires to purchase additional protection. Many third-party warranty companies allow you to purchase a plan at any time. This is not the case with MBI, which often forces you to buy coverage in a much narrower window.
Recommended vendors that offer MBI
Not all providers offer auto repair or MBI insurance, but a few top-notch insurance companies do. We recommend the following reputable car insurance providers if you are considering adding repair coverage to your policy:
*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.
#1 Geico: Affordable for most drivers
Better Business Bureau (BBB) Rating: A+
AM Best financial strength rating: A++
Geico is one of the highest rated insurers on our team due to its excellent customer service, exceptional financial strength and wide range of coverage options. As for MBI, Geico offers plans for new cars and leased vehicles less than 15 months old and less than 15,000 miles. Once you purchase MBI from Geico, you have the option to renew it for up to seven years or 100,000 miles. After a $250 deductible, repair, parts and labor costs are covered in the event of mechanical failure.
Keep reading: Geico Insurance Review
#2 Progressive: Low rates for high-risk drivers
BBB rating: F
AM Best financial strength rating: A+
Progressive offers MBI to drivers in all states except Indiana and New York. The company’s mechanical repair insurance includes benefits such as $100 per day for trip interruption and $60 per day for car rental expenses. You can choose a deductible between $100 and $500 and choose between monthly or annual payments. Progressive allows you to lock in your MBI rate for up to three years.
Progressive currently has an F rating from BBB and has closed over 3,800 BBB complaints over the past three years. We contacted Progressive for a comment on its BBB rating but did not receive a response.
Keep reading: Progressive insurance review
#3 American Family: Good customer service
BBB rating: A
AM Best financial strength rating: A
American Family Insurance partners with ForeverCar to provide mechanical breakdown insurance. A ForeverCar vehicle service contract is a subscription-based plan that typically costs between $45 and $75 per month. You can choose any repair shop and pay a deductible of up to $250 for each service.
ForeverCar plans cover almost every part of the vehicle up to 105,000 miles. From there, you get powertrain coverage for up to 225,000 miles. Drivers with American Family car policies get discounts on ForeverCar packages.
Car repair insurance: conclusion
If you want your car insurance policy to give you extra peace of mind when it comes to covering expensive repair costs, the providers that offer MBI are the right choice for you. When contacting insurers for quotes, be sure to ask an insurance agent if the company offers MBI coverage. We recommend getting auto insurance quote from multiple providers to find the best coverage for your needs.
Does auto insurance cover repairs? : FAQs
Because consumers rely on us to provide unbiased and accurate information, we’ve created a comprehensive rating system to formulate our ranking of the best car insurance companies. We’ve collected data on dozens of car insurance providers to score companies on a wide range of ranking factors. The end result was an overall score for each provider, with insurers who scored the most points at the top of the list.
Here are the factors taken into account by our assessments:
- Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage (30% of total score): Companies that offer a variety of insurance coverage choices are more likely to meet consumer needs.
- Reputation (15% of total score): Our research team considered market share, industry expert ratings, and years in business to assign this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and fewer eligibility criteria scored higher in this category.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by JD Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own customer analysis.
*Data correct at time of publication.