Car Repair Insurance: Is It Worth The Effort?

This article explains and provides an in-depth overview of car repair insurance, reasons for its need, and all its benefits.

Cars are not just a mode of transportation or a general mechanical device. It is much more than just a piece of metal for people. With their speed and comfort, cars provide humans with the freedom to travel anywhere they want, whenever they want. They do not provide the freedom to commute only but are also a facility that has made our everyday lives easier. Today, the importance of cars is quite evident and apparent in people’s lives. In today’s busy era, cars play a vital role by making our traveling quicker, comfortable, and luxurious.

These vehicles can facilitate many everyday tasks, but they also provide a sense of reliability, flexibility, independence, and much more attraction. All car owners love to care for their cars and invest in car insurance to cover all major problems and hazards, including fires, theft, etc. Like all other machines, even cars have durability and functioning limits. So the damage is the ultimate truth, even for vehicles such as cards.

In these situations, people usually take precautions and already buy insurance programs so that when and if they have to face such conditions, they do not have to pay for all repair costs. These car life insurances are a great way of protecting your car in case of accidental damages. It also provides medical expenses and financial liability and protects from legal consequences. These insurances can prove to be a great facility, and people can also take better coverage packages by buying the most suitable insurance policy. The mechanical breakdown insurance, also called car repair insurance, is slightly different and more providing than the standard one.

This policy is more facilitating than the usual car insurances as they cover all types of mechanical damages and breakdowns that can happen to your car. So in this article, we will try to explore as much as possible about car repair insurance and its benefits as well.

What is car repair insurance?

Like all gadgets and devices, even vehicles have a life duration in which they function appropriately. With time, inevitable wear and tear can affect their performance. But not every car is bound to complete its functioning limit. Often, there are instances when issues appear in the engine or any other part of the car. In such situations, repairing these issues is the only way out. But covering the costs of these issues is also quite burdensome. So in these cases, car repair insurances are present for people they can buy and rely upon easily.

Can insurance make you repair your car?

These breakdowns include any failure or disruption in the engine’s electrical system or in any way damage to the gasket or the transmission, etc., all come under mechanical breakdown. In these situations, the usual and standard car insurance policy does not cover the cost of these failures and problems. Since those policies only cover accidents, depending upon the policy rules and other issues usually and do not pay for any mechanical damage.

You can buy car repair or mechanical damage insurance for these additional damages and hazards and cover all costs. This policy lets you fix your car in case of breakdown of its parts and saves you from a costly repair bill. This insurance lets you repair your car and increase its run time by providing enough ease, leverage, support and improving and expanding its run time.

What damages can car repair insurance cover?

Unfortunately, like all insurance policies, even car repair policies and insurances also have a limit to cover all damage. It also is not available for every type of car, and it may also happen that your damage repair exceeds its coverage limit. Many companies sell both standard car insurance and car/auto repair insurance policies.

Every company has its terms and conditions or rules and regulations. So the coverage for car repair also varies from company to company. But a general policy usually covers damage repairs for the following parts of your cars:

  • Electrical systems such as engines, batteries, and starters of the cars.
  • Damage to air conditioning and heaters
  • Steering systems
  • Fuel systems
  • Brakes
  • Transmission
  • Exhaust systems

Very much like all other auto insurances, even car repair insurance has a deductible range that a person has to pay for before the insurance starts. Usually, for these policies, the range is between 100$ to 300$. So, it usually covers all more minor repair damages and pays up to some extent for the bigger ones.

If, in any case, your car’s air conditioning stops working, or if you have to get rid of problems that you may face due to your fuel systems, then all fall under this insurance. With this policy, you can simply file a claim stating your need for damage repair. After some thorough evaluation, the company will determine your eligibility for the repair insurance.

Simply put, there is a whole process just like all other insurance policies, and after following it, you may get your damage correctly covered. This is why investing in these car/auto repair insurance policies is the ideal thing to do. If any company allows repair insurance for your car, you can get additional aid for all necessary damages to your vehicle.

What damages does car repair insurance not cover?

Every company independently sets limits and decides what type of damages it will cover or won’t. But on a broad basis, there are some damages that usually most of the companies do not cover in their vehicle repair policy. Some of the major ones are as follows:

  • All sorts of routine maintenance and examination that the car needs from time to time
  • Oil changing, tire checkups, and rotations, all tune-ups
  • Damages as a result of some severe accident
  • All major impairments that are a result of improper maintenance
  • Items that usually fall under car warranty
  • Cosmetic damage and wear and tear
  • Before you buy a car, existing damages do not meet the repairing standard.
  • Items or damage that the recall covers
  • Rust and corrosion as a result of poor caretaking
  • Non-mechanical grooming like vehicle molding

Thus, all these repairs generally do not fall under car repair indemnity. For all these severe impairments, an individual must rely on auto insurance or pay for them himself. All cars require specific maintenance from time to time that is also mandatory for their durable functioning.

Avoiding these routine examinations can lead to more serious problems impacting the usage lifetime. This is why tuning, oil change, tire examination, thorough cleaning of exhaust systems, and other car parts are necessary.

Long term benefits of car repair insurance

There are a variety of things that car/auto repair insurance usually provides. In addition to covering all or partial financial costs, these policies also are an excellent alternative for people who cannot afford expensive procedures for their cars. It entirely depends on the way you perceive it. For instance, some people do not find these insurances worthwhile. But on the other hand, for drivers, it is nothing less than a blessing.

Your last resort and savior

Indeed there are many insurances available, and you can benefit from them. But your auto insurance does not pay for repair damages, and even if you rely on warranties, they are not valid for a lifetime. So, in this case, what is your last resort? Car repair insurance or mechanical breakdown insurance are the same policies with different names that can help you get over certain types of damages. It provides for things that standard insurance does not provide for usually. These minor repairs can also increase the reliability and durability of a vehicle.

Think of it as your warranty but in an extended form. The good thing about this type of policy is that it can be present for you all the time, especially in case of sudden need. For instance, if you face any electrical system damage while driving your car, your regular insurance will not cover, not pay for it. But, mechanical breakdown insurance will cover it and help you eliminate such errors and damages.

Budget-friendly option to avail

Not everyone is financially stable enough to pay for sudden damages to their car. So relying upon such a suitable policy is the most understandable thing. It can save you from the struggles of arranging money when the need arises. Moreover, you only have to pay a moderate amount, as these are not too expensive. Overall, it’s a great initiative and can lead to easier hazard management.

By allowing people to mend and repair every part that needs restoration and mending, this policy positively impacts and affects their lives. In other words, it works as a significant saving that can come forward to provide aid whenever necessary. Most new car owners believe a common misconception that auto repair insurances are way too expensive. However, on the other hand, there are various coverage options that these insurance policies provide. For instance, any car owner can self-decide which parts he wants to pay for and include in the policy insurance.

Since this policy varies in nature and does not follow any hard and fast ruleset, it is very convenient. Moreover, if, in any case, you decide to sell your car or provide it for lease, or even start a renting company and use your vehicle, you do not have to worry about expensive repair cover. So, not only does this policy provide present repair ease and comfort, but it also can keep the worth of your car a lot better by keeping it in good condition with these standard repairs. These may seem small and unnecessary, but they impact the overall activity and help it keep in good condition.

Availability of such restoring services

As this insurance is an excellent way of saving money and ensuring your vehicle’s excellent condition by providing it with complete maintenance, it is undoubtedly widespread too. This simply means that these services are always available to people whenever and wherever they need them. Every state has many garages that provide these treatments and procedures.

In addition to this, companies also provide customer support to their clients to reach out to them and have their problems sorted. It shows and indicates the hassle-free service availability and proper resolving of issues. By managing clients, companies can benefit from it, and the clients can also get multiple benefits and find immediate solutions for their problems.

No requirement for any down payment

Auto repair insurance does not require a person to put forward any kind of down payment, which is another benefit of this type of car insurance. Paying in installments makes it easy for people to set aside a specific amount of money. Instead of paying for all funds from their own pockets, people can rely upon these insurances and get all repairs and restoration easily just by claiming to their insurance company.

Insurance for specific parts and systems

In auto repair, a person has the leverage to choose some parts for insurance or an entire system. This facility helps them save money and invest according to their budgets and pocket. In simple words, a driver or car owner can simply pay for car parts or systems that worry him the most. He is not bound to pay for entire care parts if he wishes to not include them in his policy statement and conditions. He can quickly get precise coverage without any problem getting in his way.

All of these reasons are enough to capture people’s attention and pull it towards the auto repair or car repair insurance policy. But reading the policy conditions and ruleset before buying it are still the main things to do beforehand. Having a suitable insurance policy can help you manage your everyday damage costs and increase your vehicle’s durability and reliability for you.

Disadvantages of mechanical breakdown insurance policies

Like advantages and benefits, these policies also have a set of limitations that they provide to their users. The insurance-providing company also puts many restrictions that can limit access to particular repair and restoration.

A limited number of insurance providers

One of the most significant drawbacks of this insurance policy involves a limited number of service providers. This limitation can make it hard for service seekers to find available options whenever they need them. So this makes it a rather stressful experience for people to find companies that can provide the most suitable policy conditions.

Restrictions of vehicle type and mileage

The most unattractive thing about this type of car insurance is its unavailability for all vehicle types and mileage ranges. So not every car owner can avail of these policies and all their advantages.

Rejection for repair claims

Since you first have to file a claim for needing repairs, your insurance company may or may not find your claim to be an authentic one. So, in some cases, there is a possibility that your insurance company refuses to pay for any restoration that you may end up needing for our vehicle.

Is car repair insurance for older cars available?

Usually, different companies set different eligibility criteria for their insurance policies, so there are different standards that every car has to meet first. Generally, a vehicle has to meet the specific condition and needs to have an excellent mileage to be considered for this type of insurance.

Some companies may or may not include older car models in their policies. So the answer to this question cannot be an absolute yes or a no. Some companies provide car/auto repair insurance for older cars, while others deny such facilities. Older cars usually are not very durable and do not even give a good mileage after a specific time. So the limitations regarding vehicle mileage may make your older car ineligible.

Every car insurance company can have its requirements. Not all cars can have this type of insurance as every company has a list of cars it provides insurance and aid for.

In addition to this, if your car fits the guidelines for car insurance, car owners can also enjoy many other benefits.

For instance, if a car owner decides to sell his car to another person, he may also transfer the vehicle’s repair insurance to the other person. But, this is only possible if your insurer allows this, so you may need to check different companies before signing up for any available insurance policies. So the older your car gets, its insurance chances may decrease, but if you can somehow find a company that provides insurance for vehicles such as yours, then you can buy the insurance policy and also sell your cars.

Is car repair insurance worth the cost?

When a person buys a car, he usually buys standard insurance, and you may also avail of an extended warranty. But with time, the warranty expires, and you may fall prey to certain mechanical breakdown situations. When the warranty period ends, every vehicle owner is personally responsible for paying for any repairs, which can cost an arm and a leg. In such a sudden hour of need, mechanical breakdown insurance, also commonly known as car repair insurance, can come greatly handy. People can address all issues and problems that can wear their vehicle down with time.

But the first and most essential step that you need to take beforehand is to determine if the policy suits your financial status or makes sense to your budget financially. Buying this insurance can provide you with a state of mental peace that you will have appropriate coverage if some unexpected and sudden damage occurs. It is also worthwhile to consider getting car insurance as your car gets older or if you want to buy a car that already has insurance. This aspect allows you to get good worth for your vehicles if you sell them. Moreover, it ensures better performance and long-term companionship between yourself and your vehicle.

Some policies allow you to get funds right away, and some require you to pay first and then get reimbursement for your damage. You may not need this type of insurance policy on a brand new car since every car has some warranty period in its initial times. Thus, it is not necessary to invest in such car insurance policies. Hence, the most appropriate step any person can take is to think thoroughly during your car warranty to cover your expenses. And as the need arises, invest in a car repair insurance policy.


Needless to say, car/auto repair insurance has its benefits and drawbacks. But if we look at the brighter side of the picture, its benefits usually overshadow its flaws. Although we cannot just term those as disadvantages, the program itself does not pose any negative impacts. However, its lack of proper aid to all vehicle types and having certain restrictions limits its users. But these are some things that seem unessential in front of its everyday and routine benefits.

Out of the context of accidental damage, every essential part or system of the car can get restoration and maintenance. This aspect can keep a vehicle well and fit for longer times and elongate its functioning timing. People who have exceeded their warranty durations can rely upon this policy as an extended warranty for all minor and major hazards. It can either pay entirely or partially for you, but it will provide great relief in the end.

So if you are looking for car insurance and want to cover all your non-accidental issues and problems, then relying on auto repair insurance is the most beneficial and decision that anyone can timely take. Not just groom your cars and increase their performance, but make a considerable difference quality-wise and upgrade your car game.

If you keep a positive outlook, this insurance may keep things easy for you and help manage financial expenses. Get your car repair insurance today and get yourself ready for any sudden issue.

John Otero

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.