Does my auto insurance cover breakdowns?

There are many different types of auto insurance coverages. So does auto insurance cover breakdowns? It depends on the details of your policy, but basic insurance policies typically do not cover mechanical breakdowns.

Below, learn about the types of auto insurance that cover breakdowns, like collision and comprehensive coverage or mechanical breakdown insurance.

After learning about affordable auto insurance that covers breakdowns, enter your ZIP code into our free rate comparison tool above to receive quotes from the best companies in your region.

Does auto insurance cover breakdowns?

It’s possible to buy an auto insurance policy that covers some mechanical breakdowns. But it ultimately depends on variables like what company you use, how the damage occurred, and what levels of coverage you invest in.

Typically, you need to invest in additional coverage beyond what most states legally require.

For example, your state minimum liability coverage does not ever pay for damage to your own vehicle, even if it breaks down.

Instead, it pays for another driver’s costs resulting from an accident you cause.

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But if your vehicle broke down because another driver caused the accident, you’d file a third-party claim through their liability insurance to cover the costs rather than rely on your own coverage.

In some scenarios, comprehensive or collision coverage may help pay for breakdowns.

Investing in both is often referred to as full-coverage auto insurance. So when exactly does full coverage insurance cover engine damage?

Regardless of fault, collision auto insurance pays for damage to your vehicle caused by an accident with another car or a still object, like a tree, telephone pole, or building. A deductible applies.

So if your car breaks down after colliding with a tree or another vehicle, your collision insurance helps pay for the damages.

Comprehensive auto insurance, on the other hand, protects your car from damage while parked. This includes acts of nature, but also vandalism, fires, flooding, and auto theft. A deductible also applies.

So if your vehicle breaks down because of vandalism or something falls on it and destroys the engine, then your comprehensive coverage helps pay for those costs.

Prices for these optional coverages vary depending on where you live, as well as other variables like your age, driving record, and more.

So, in the table below, compare comprehensive and collision auto insurance rates that cover breakdowns by the state.

Nationally, the average cost of comprehensive auto insurance is about $12.33 per month or $148.04 annually.

On the other hand, collision auto insurance that covers breakdowns cost $26.88 per month or $322.61 annually on average.

Remember, the repair costs must exceed your deductible amount to file a comprehensive or collision claim.

According to the Insurance Information Institute (III), in 2020, the average claim severity for comprehensive insurance cost $1,995, and for collision coverage, it averaged $3,588.

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What is mechanical breakdown insurance?

Some companies offer something called mechanical breakdown insurance (MBI) as a policy add-on. However, it’s possible companies may use alternative names.

Currently, MBI coverage is not very standardized, so the details of what it specifically covers depend on what company you use.

But usually, these policies are cheaper than extending a warranty on your vehicle through the dealership but cover similar scenarios, like transmission or engine issues.

For example, Geico offers MBI coverage with a $250 deductible that covers all mechanical parts of the vehicle.

However, usually, only newer vehicles with a certain number of miles qualify for the coverage. Plus, most MBI policies stipulate that general maintenance and wear and tear do not qualify.

So, unfortunately, even if you invest in full coverage auto insurance and purchase add-ons like mechanical breakdown insurance (MBI), there may be some instances where a breakdown is still not covered by your insurance policy.

But if it fits your budget, it does protect your vehicle in far more situations than if you went without these additional coverage options.

The best mechanical breakdown insurance comes from places like Allstate, Geico, and AAA.

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find an auto insurance company that covers breakdowns, compare quotes online and ask representatives from the companies you’re interested in if mechanical breakdown insurance is available.

When does auto insurance not cover breakdowns?

Unfortunately, there are some breakdown scenarios that auto insurance companies simply do not cover.

For example, when it comes to general maintenance and wear and tear, does insurance cover engine failure? Unfortunately, damage caused by daily use is not usually covered by insurance policies.

Similarly, annual maintenance, like oil changes, tire rotations, and suspension alignments, are generally not covered by any type of insurance.

Does auto insurance cover mechanic negligence? Usually, it only covers mechanic negligence if the poor repairs cause an accident.

If you lease or finance your vehicle, you may have guaranteed asset protection or GAP insurance. But does GAP insurance cover engine failure?

No, but it would help pay for the difference between your car’s value and the remainder of your loan if the vehicle is stolen or totaled in an accident.

Case Studies: Exploring Breakdown Coverage

Case Study 1: John’s Breakdown Coverage Dilemma

John recently experienced a breakdown with his car and was surprised to find out that his auto insurance policy did not cover the repairs. Despite having basic coverage required by state laws, John’s insurance only covered damages related to accidents.

The breakdown was considered a mechanical issue and was not included in his policy. This case study highlights the importance of understanding the coverage limitations of your auto insurance policy.

Case Study 2: Sarah’s Comprehensive Coverage Saves the Day

Sarah’s car broke down after colliding with a tree during a severe storm. Luckily, she had invested in comprehensive auto insurance coverage. As a result, her insurance policy helped pay for the damages caused by the accident, including the repairs needed for her car’s engine. Sarah’s case demonstrates how comprehensive coverage can be beneficial when it comes to breakdowns caused by accidents.

Case Study 3: Mark’s Mechanical Breakdown Insurance

Mark purchased a mechanical breakdown insurance (MBI) policy as an add-on to his auto insurance. When his car’s transmission failed unexpectedly, Mark’s MBI coverage came to the rescue. The policy covered the cost of repairing the mechanical parts, saving Mark from significant financial burden. This case study emphasizes the value of MBI as an additional coverage option for unexpected breakdowns.

The Bottom Line: Does auto insurance cover breakdowns?

Some auto insurance coverages do pay for breakdowns in specific scenarios, like collision and comprehensive insurance. But that only applies if the damage is due to a covered incident.

For people who own newer vehicles, mechanical breakdown insurance may be a solid option to provide additional coverage for your car. However, older cars and cars with many miles may not qualify for the coverage.

Plus, auto insurance policies typically do not cover any type of general maintenance or wear and tear caused by daily vehicle use.

Now that you know how to buy auto insurance that covers breakdowns, remember to enter your ZIP code into our free quote comparison tool below to receive rates from the best companies near you.

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