Does Car Insurance Cover Major Repairs?


Car insurance is meant to help cover the cost of repairs if your car is in an accident, stolen, damaged by a natural disaster, etc.

It does NOT cover major repairs or routine wear and tear failures, such as needing a new set of brake pads or new tires.

To help you understand why this is, as well as what your options are if your car breaks down we’re going to take a deep dive into the mechanics of insurance.

Pun intended.

Let’s begin.

What Is Car Insurance?

Progressive, one of the nation’s leaders in car insurance tells us that car insurance is meant to:

…cover damage to your vehicle and protects you financially if you’re liable for someone else’s injuries or damages. Additionally, auto insurance can pay for medical bills if you or your passengers are injured in an accident or you’re hit by an uninsured or underinsured driver. Your policy protects you up to certain limits, agreed upon by you and your insurer.

Car insurance is legally required in all states minus New Hampshire (which will still hold you accountable for an accident), so chances are you have it if you are reading this article.

If you don’t, head on over to our insurance page so we can help you get it before you get in trouble (and save you up to 25% in the process).

What Does Car Insurance Cover?

What is covered by your car insurance depends on the type of insurane you choose. There are dozens of different options.

The bare minimum coverage you are allowed to have will include whatever your state’s minimum coverage limit is. This varies by state.

Generally speaking, the main types of car insurance that you may be required to have can include:

  • Liability insurance, which pays for any expenses due to an accident that you are considered at fault for. Generally, this includes liability, bodily injury, and property damage liability coverage.
  • Personal injury protection (PIP) or MedPay to cover any medical expenses accrued after an accident.
  • Uninsured and underinsured coverage to pay for damages caused by drivers without car insurance or without enough car insurance to pay for the damages they cause.

Here are some of the other types of car insurance, courtesy of NerdWallet:

Coverage typeWhat it pays for
Bodily injury liabilityMedical costs due to injuries or deaths from an accident you caused.
Property damage liabilityRepair costs for property you damaged in an accident.
Uninsured motorist bodily injury liability Medical costs after an accident with an uninsured driver.
Uninsured motorist property damage coverageRepair costs after an accident with an uninsured driver.
Underinsured motorist coverageExpenses from an accident with a minimally insured driver. This coverage pays once the underinsured driver’s coverage limits have been met.
Collision coverageRepair expenses from traffic-related accidents, regardless of who is at fault.
Comprehensive coverageRepair costs from events outside your control — including weather events, hitting an animal while driving, theft and vandalism.
Medical payments coverageMedical expenses for you and your passengers after an accident regardless of fault.
Personal injury protection insuranceMedical expenses, as well as lost wages, child care, funeral costs and other losses due to an accident regardless of fault.
Gap insuranceThe difference between what you owe on your car and your car’s true market value.

What If My Car Is Damaged In An Accident?

Collision coverage can help to pay for repairs if your car is damaged in an accident with another vehicle or an object, such as a fence or tree. This coverage also typically provides help if you are the only one in an accident. For example, if your car veers off the road or decides to roll over.

It can also include damage from poor road conditions, including potholes and debris in the road. If your car sustains body damage or has mechanical issues due to the collision, this coverage is meant to help pay for repairs. Again, it’s important to note that something has to happen to your car to cause mechanical issues. They can’t appear on their own.

Collision coverage is optional unless you are leasing the car. The same is true if you take out a car loan. The dealership or lending may require you to have collision coverage in this case. You can choose how much you pay for your deductible. Without collision coverage you may be responsible for the full cost of any repairs or replacing your vehicle, depending on what other coverage you have.

If your car is totaled, comprehensive coverage will provide you with the actual cash value of your car at the time of the accident. If you end up owing more on the car than the actual cash value, you will have to pay out of pocket. This is where gap insurance can be key, as we just talked about in our recent post about Gap Insurance and Transmission Repairs.

A Vehicle Service Contract Does Pay For Major Repairs Not Covered By Insurance

So here’s the good news: a vehicle service contract from Protect My Car will absolutely major repairs where insurance doesn’t.

As you can see, all of our vehicle service contract plans cover major repairs to your car.

A vehicle service contract is a bit different then insurance. For insurance to work, your car needs to be involved in an accident which isn’t all that common. On the other hand, cars break down all the time.

When your car does break down, if you have a vehicle service contract we take care of the repair bill for you. You pay a deductible (between $100-$200) just like you would with insurance, and we pay the rest.

For example, if your transmission fails and you are quoted $2,900 for a repair but you have a Supreme policy with us, you would only pay $100 dollars as a deductible and then we step in and pay the rest of the repair bill for you.

A vehicle service contract with Protect My Car can cover:

  • Engine
  • Transmission
  • Transfer Case
  • Drive Axle
  • Front/Rear Suspension
  • Air Conditioning and Heating (you do NOT want to be without these)
  • Electrical
  • …and so much more.

This is in addition to free oil changes and tire rotations, plus a free rental while your car is in the shop AND your hotel and meals paid for if you are away from your house.

Not to mention the free 24/7 roadside assistance that always has your back whether you get locked out or you break down on the side of the road.

Don’t wait for your car to break down or for your transmission to fail. Fill out the form below and click the “Get Quote” button to see how easy it is to start saving thousands on your car repairs, including your transmission.

Because even though it sucks that insurance does not cover major repair breakdowns, we do. You don’t have to pay out of pocket if you don’t want to. Just click the get quote button before your car breaks down and we’ll be there when you need us.

About Protect My Car

Protect My Car is an extended auto warranty company. Our goal here at Protect My Car is to eliminate your worry of being financially responsible for an expensive mechanical breakdown. With our extended auto warranty, you don’t have to worry about being fully burdened with the cost of a covered repair.