A few years ago, while winding my way up Highway 1 on a solo road trip, my beloved (and well-worn) hatchback started sputtering near Big Sur. One tow, three diagnostic tests, and a blown timing belt later, I was left staring at a $1,400 repair bill — and wondering, “Doesn’t my car insurance cover this?”
If you’ve ever asked yourself the same question, you’re not alone.
The short answer? Sometimes, but not always. And knowing when your auto insurance will — and won’t — cover repair costs can save you from a nasty financial surprise down the road.
Let’s unpack this together.
What Auto Insurance Typically Covers (And What It Doesn’t)
First, let’s clear up a common misunderstanding: auto insurance is primarily designed to protect you financially in the event of accidents or unexpected incidents — not regular wear and tear.
That means unless your policy includes specific types of coverage, most repairs fall outside your standard plan.
Here’s a breakdown of the major coverage types and how they relate to repairs:
1. Liability Coverage
If you’re legally at fault in an accident, liability coverage pays for the other party’s medical bills and vehicle damage — not your own repairs.
Does it cover repairs?
No. Even if your car is totaled, liability won’t help you replace or fix your own vehicle.
2. Collision Coverage
This one kicks in if you hit another car, a tree, a light pole, or even a pothole. It helps pay for repairs to your vehicle, regardless of fault.
Example: Back into a pole in a parking lot? Collision coverage can help cover body damage.
Does it cover repairs?
Yes — if the damage is accident-related.
3. Comprehensive Coverage
Think of this as coverage for the unpredictable: falling trees, hail damage, theft, vandalism, even animal collisions.
According to the Insurance Institute for Highway Safety (IIHS), around 1 in 40 drivers file a comprehensive claim each year. These incidents aren’t rare.
Does it cover repairs?
Yes — for non-collision-related damage.
4. Mechanical Breakdown Insurance (MBI)
Here’s where things get more nuanced.
Some insurers offer MBI or similar extended warranties. These can help with mechanical failures not caused by accidents — like transmission issues or engine failures.
But MBI isn’t always included in your standard policy — you typically need to opt in, and often only when your car is newer.
Does it cover repairs?
Yes — but only if you’ve added it as extra coverage.
So, What Doesn’t Insurance Cover?
Here’s the cold, hard truth: most common repairs aren’t covered by standard insurance policies.
That includes:
-
Oil changes, brake pads, tire replacements
-
Engine or transmission failures (unless you have MBI)
-
Normal wear and tear
-
Rust, corrosion, or cosmetic damage
Even if you’ve been with your insurer for years, they likely won’t cover that $700 alternator repair unless it was caused by a covered event.
Tip: Check your deductible before filing a claim — if your deductible is $1,000 and your repair is $900, you’re footing the entire bill.
Real-Life Scenarios: What’s Covered and What’s Not?
Let’s bring it down to earth with some examples.
Scenario 1: A tree falls on your parked car during a storm.
Covered under comprehensive coverage.
Scenario 2: Your transmission fails after 120,000 miles.
Not covered unless you have MBI or an extended warranty.
Scenario 3: You rear-end another vehicle and crack your front bumper.
Covered under collision coverage — minus your deductible.
Scenario 4: Your battery dies on a cold morning.
Routine maintenance — not covered.
Optional Add-Ons That Can Help
To fill the gaps, many drivers turn to add-ons and alternatives:
Extended Warranty:
Often purchased through dealerships, these cover mechanical repairs after your factory warranty expires.
Mechanical Breakdown Insurance:
Offered by select insurers for newer vehicles. More flexible than extended warranties, and often cheaper.
Roadside Assistance:
This won’t pay for major repairs, but it can help cover towing or jump-starting a dead battery.
According to a 2023 J.D. Power study, over 60% of drivers who added optional coverage felt more confident navigating unexpected vehicle expenses.
How to File a Repair Claim (If You’re Covered)
If you do need to file a claim for covered repairs, here’s how to do it right:
1.Document the damage with photos.
2.Get a police report (if applicable).
3.Contact your insurer promptly.
4.Choose an approved repair shop or one you trust.
5.Review your deductible — this is what you’ll pay out of pocket.
Some insurers may offer a list of certified shops, which can streamline the repair and claims process.
Tips to Maximize Your Coverage (and Avoid Surprise Bills)
-
Bundle your policies to reduce costs and afford better add-ons.
-
Understand your deductible before an accident happens.
-
Read your policy carefully — know what’s excluded.
-
Don’t wait to ask questions — contact your insurer before assuming a repair is covered.
Final Thoughts: Protecting Your Car (and Your Wallet)
I’ve been there — standing at a repair shop counter, trying to calculate whether my insurance would soften the blow. It’s not fun, and it’s not always clear.
But when you understand what your policy actually includes — and what you may need to add — you can make smarter, more confident decisions about coverage.
Budget Insurance Agency is here to help make that process a whole lot easier. With clear, affordable auto insurance options tailored to your needs, Budget empowers drivers to protect what matters most — without overpaying or being caught off guard.
Whether you’re shopping for a new policy, wondering if you need collision coverage, or exploring mechanical breakdown protection, Budget Insurance Agency makes it simple to compare, quote, and choose the right coverage for you.