It’s useful to know how does auto insurance covers repairs for any damage caused to your car. The kind of repair required and the root of the issue will determine whether it is covered. Auto insurance will not cover repairs unless the problems are directly related to situations that fall within its coverage, such as collisions, severe weather, or vandalism.

According to the National Association of Insurance Commissioners, most auto insurance policies do not cover maintenance, including an oil change. In the event of an engine blowout, mechanical failure, or routine maintenance, your auto insurance will probably not pay for the necessary repairs or replacements. Hopefully, your car never breaks down, but if it does, be prepared to pay for regular maintenance or a technician out of pocket.

The good news is that various car repairs can be covered by add-ons offered by some auto insurance companies. These insurance policies usually include labor and parts coverage as well, leading to significant long-term savings.

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Types of Auto Insurance Coverage

Liability Insurance

  • Bodily Injury Liability : This covers medical expenses and legal fees if you caused the accident and injured someone else.
  • Property Damage Liability : This covers replacement or repairs of the other party’s vehicle or property if you are at fault in an accident.

Collision Coverage

This type of coverage pays for repairs to your vehicle after an accident, irrespective of who is at fault. If you lease or finance your car, the lender often requires collision coverage.

Comprehensive Coverage

Comprehensive coverage pays for repairs or replacement if your car is damaged by something other than a collision. This can include falling objects, theft, natural disasters, vandalism, and hitting an animal.

Medical Payments Coverage or Personal Injury Protection (PIP)

These cover medical expenses for the passengers and you, no matter who is at fault in an accident. PIP can also cover lost wages and other related costs.

Underinsured/Uninsured Motorist Coverage

It covers repairs to your vehicle if you are hit by a driver who doesn’t have enough or no insurance.

Mechanical Breakdown Insurance (MBI)

Separate from standard auto insurance, MBI covers repairs to mechanical parts of your vehicle, such as the engine and transmission. This is similar to an extended warranty and is not typically included in standard auto insurance policies.

What Repairs Are Covered by Auto Insurance?

  • Accident-Related Repairs: If you have collision coverage, repairs for damage resulting from an accident are covered, minus your deductible.
  • Non-Accident Repairs: Comprehensive coverage will cover repairs for non-accident-related damage, such as vandalism or weather-related incidents.
  • Mechanical Failures: Mechanical breakdowns due to wear and tear are typically not covered by standard auto insurance. However, mechanical breakdown insurance or an extended warranty can cover these repairs.
  • Repairs After Hit-and-Run: Uninsured/underinsured motorist coverage can help cover repairs if the other driver is at fault but cannot be identified or lacks sufficient insurance.

What Isn’t Covered?

  • Routine Maintenance: Auto insurance does not cover regular maintenance, such as oil changes, tire rotations, and brake replacements.
  • Wear and Tear: Normal wear and tear on your vehicle, such as worn-out tires or brake pads, is not covered.
  • Intentional Damage: Any intentional damage caused by the owner or driver of the vehicle is not covered.
  • Racing or Illegal Activities: Damage incurred while racing or participating in illegal activities is not covered.

Deductibles and Limits

When your auto insurance does cover repairs at an auto repair and body shop, you will typically need to pay a deductible. This is what you agree to pay from your wallet before insurance kicks in. The usual deductibles range from $250 to $1,000. The higher your deductible, the lower your insurance premiums tend to be, but the more you will have to pay out of pocket if you need to make a claim.

Your policy also has limits, which is the maximum amount your insurance will pay for a covered loss. For example, if your collision coverage limit is $10,000 and your repair costs are $15,000, you will have to pay the remaining $5,000 out of pocket.

Choosing the Right Coverage

To ensure you have the right coverage for potential repairs, consider the following:

  • Vehicle Value: If you have an older vehicle, it may not be worth carrying comprehensive and collision coverage. On the other hand, a newer or more expensive vehicle likely warrants these coverages.
  • Driving Habits: If you drive frequently or in high-traffic areas, you may be at a higher risk for accidents and may benefit from more extensive coverage.
  • Budget: Balance the cost of premiums with your ability to pay for repairs out of pocket. Higher deductibles can lower premiums, but make sure you can afford the deductible if you need to make a claim.
  • Peace of Mind: Consider how much peace of mind you want. Comprehensive and collision coverage can provide reassurance that you are protected against a variety of risks.

Other Options for Protecting Your Car

If you want extra security for costly repairs, you might want to consider getting a car warranty. According to research, these guarantees, which frequently accompany new cars, are intended to assist in covering certain technical failures at an auto repair and body shop. Generally, a warranty will cover specific parts or other faults for a predetermined period or until the vehicle reaches a specified mileage.

Roadside assistance is another alternative to consider. These programs usually provide flat tire changes, jump starts when your car’s batteries are dead, towing assistance following an accident, and other services. Roadside assistance is typically a part of your motor insurance policy through memberships.

Although auto insurance often excludes normal maintenance and mechanical repairs, it does offer protection against various situations, including hail damage and post-accident repairs. Examine your policy to determine your coverage, and contact your insurance company with any questions.

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Factors That Affect Your Coverage

Driving Record

Your premium is likely to be higher if you have a history of accidents, especially if you were at fault. Insurers view drivers with accident histories as higher risk. Other violations, such as speeding tickets, DUIs, frequent trips to an auto repair and body shop, and traffic stops, indicate risky driving behavior.

Lastly, frequent claims, even for minor incidents, can signal to insurers that you are not a responsible driver, which can raise your premium.

Usage

The more you drive, the higher the risk of an accident. Insurers often ask about your annual mileage, and those who drive less may qualify for lower premiums.

Long commutes increase your exposure to road risks, potentially raising your premium. Those who use their cars primarily for pleasure and not for commuting also pay less.

Location

Urban areas typically have higher premiums due to increased risks of accidents, theft, and vandalism, while rural areas usually see lower premiums.

Age

Younger drivers, especially those under 25, generally pay higher premiums because they are statistically more likely to be involved in accidents. Older drivers may also see increased premiums as they age.

In conclusion, the answer to the question, “How does auto insurance cover repairs?” lies in understanding your coverage options and the factors that affect your auto insurance premium. It is essential for managing your costs effectively. Regularly reviewing your coverage and comparing quotes from different insurers can help you secure the best rate. This will help ensure you are prepared for any unexpected repairs, allowing you to keep your vehicle in good condition.

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