Your car insurance policy can cover different types of repairs, depending on the type of coverage you have. Collision and comprehensive coverage can reimburse you for repairs after accidents and other listed perils.
However, standard auto policies exclude repairs for mechanical wear and tear. You might have coverage for this type of repair if you have an extended auto warranty or if you purchase mechanical breakdown insurance.
If you're in need of the right type of car insurance to cover repairs, a local independent insurance agent can help you get it. They'll make sure you're set up with all the coverage you need for different types of repairs. But first, here's a breakdown of when and how your car insurance can cover repair costs.
Key Takeaways - Does Car Insurance Cover Repairs in 2026?
Collision car insurance covers the cost of repairs for physical damage to your vehicle after an accident with another car or object, regardless of fault.
Comprehensive car insurance covers the cost of repairs for physical damage to your vehicle after a non-collision event, such as vandalism, fire, or hail.
Mechanical breakdown insurance covers the cost of repairs to your vehicle due to unexpected mechanical or electrical failures.
An extended auto warranty may cover the cost of repairs to your vehicle for routine maintenance or wear and tear.
Working with an independent insurance agent is highly recommended, as they can shop and compare car insurance quotes and coverage options from multiple carriers near you to find the best deal.
When Does Car Insurance Cover Repairs?
Car insurance can cover repairs after accidents or non-collision events, provided you have the right type of coverage. A standard auto policy can cover repairs for physical damage in three different scenarios:
- If you're in an accident caused by another driver, your car repairs will be covered by the at-fault driver's liability insurance, assuming they have it. Likewise, your liability insurance covers repairs for physical damage to other people's vehicles if you cause an accident.
- If you're at fault for an accident, your collision insurance will cover physical damage to your vehicle after you pay your deductible if your claim is approved.
- If your vehicle is damaged by a non-collision event, such as hail, theft, fire, or vandalism, your comprehensive insurance will cover physical damage to your vehicle after you pay your deductible if your claim is approved.
If you file a car insurance repair claim for any of the scenarios above, the damage will likely be covered. Keep in mind that you have to pay your car insurance deductible for repairs first.
Car insurance does not cover repairs for general wear and tear on your vehicle, such as replacing your brakes. However, if you purchased an extended warranty for your vehicle, you may have coverage for routine maintenance for several years.
You can also buy mechanical breakdown insurance. Your independent insurance agent can help you file a car insurance claim for repairs after an accident.
How Does My Insurance Cover Repairs?
Your car insurance company might pay the repair shop directly or reimburse you for the cost of repairs after they're completed, depending on your policy's terms. Let's say your car was parked outside during a rainstorm that turned into hail. In this case, if you have comprehensive coverage, your car insurance will cover the repairs to your vehicle if your claim is approved.
When you call your insurance company to report the damage, they'll open a claim and investigate the cause of the damage. If it falls under your comprehensive coverage, they'll set you up with an approved repair shop, and you'll be able to have your car fixed. From there, you aren't responsible for much more than waiting to hear that your car has been fixed. Your insurance company will handle the heavy lifting.
How Much Will Car Insurance Pay for Repairs?
If you have to make a comprehensive or collision claim, you’ll have to pay the deductible that you chose when you purchased your policy. Common collision deductibles range from $100-$1,000, while comprehensive deductibles range from $0-$2,000. Your repairs will be covered up to the car’s actual cash value (ACV), which accounts for depreciation. The ACV is the fair market value of your vehicle at the moment before the damage occurred.
Imagine your comprehensive deductible is $500, and your repairs after damage from a severe storm cost $2,500. You’d be responsible for paying the $500 deductible out-of-pocket.
Deductibles are per incident, so each time you make a collision or comprehensive claim, you’ll have to pay your deductible. Choosing a higher deductible can help you save money on your car insurance premium, but it can also make getting repairs difficult if you don’t have the cash when you need it.
If your repair bill is not much higher than your deductible (e.g., a $700 repair bill with a $500 deductible), it might not make sense to file a claim if you can afford to pay the full bill out-of-pocket. If you file a lot of claims or even a single expensive claim, your insurance company may raise your rates at renewal time. It helps to weigh all the financial implications of filing a claim for repairs.
What Covers Car Repairs That Insurance Won't Pay For?
If you want to make sure you're covered for certain repairs, talk to your independent insurance agent about purchasing collision and comprehensive coverage. Both of these policies will provide added protection against common scenarios that drivers encounter.
So, does car insurance cover mechanical repairs? It can if you add mechanical breakdown insurance (MBI) to your policy. MBI costs an average of $35-$85 per year for base policies. However, many MBI policies have eligibility requirements to consider. Your vehicle may only be eligible if it's newer than a few years old or has fewer than a certain number of miles.
Another option is to look into an extended warranty. This is usually offered when you purchase your car and can cover you against unique issues that happen with your car, mechanical or otherwise, within a certain time frame or mileage. You can also sometimes buy extended warranties for older vehicles from third-party providers.
What Does Mechanical Breakdown Insurance Cover?
Mechanical breakdown insurance covers repairs to your vehicle's components after unexpected mechanical or electrical malfunctions.
| Covered: | Not Covered: |
|---|---|
Engine
|
Brake pads
|
|
Transmission
|
Tires
|
|
Electrical systems
|
Oil changes
|
|
Brake components
|
Cosmetic parts
|
|
Cooling
|
Pre-existing damage
|
|
Steering
|
Recall items
|
|
Drivetrain
|
|
|
Onboard computers
|
If you've been asking, "Does car insurance cover mechanical breakdown?" or "Does car insurance cover wear and tear?" the answer is yes if you have MBI. If you currently don't have this coverage, a local independent insurance agent can help you add it to your auto policy.
MBI vs. Extended Warranty: Key Differences
Whether MBI coverage or an extended warranty makes more sense for you depends on your unique needs and circumstances. The table below compares key differences between MBI and extended auto warranties.
| Factor | MBI | Extended Warranty |
|---|---|---|
| Cost | $35–$85 per year | $1,300–$4,600 per year |
| Regulation | State-regulated | Service contract |
| Eligibility | Typically available for newer, low-mileage vehicles | New vehicles (from dealerships), older vehicles (from third-party providers) |
| Claims | Choose your repair shop | Approved shops required |
Comparing the average mechanical breakdown insurance cost in 2026 to the average extended warranty coverage cost may be enough of a deciding factor for many drivers. If you're still undecided, your independent insurance agent can help recommend the type of coverage that makes the most sense for your vehicle.
Other Coverage That Helps When Your Car Is in the Shop
If you want rental car coverage during repairs to your own vehicle, you can add rental car reimbursement coverage to your auto policy. This coverage typically provides coverage limits of $600 per accident and $20 per day, for 30-day terms. Rental reimbursement covers a rental vehicle while your car is being repaired after an approved claim.
Another option is to add a roadside assistance endorsement to your auto policy. This covers towing, flat tires, and battery jump-starts that aren't covered by MBI. Your independent insurance agent can help you add either of these types of coverage to your auto policy.
How to File a Claim for Car Repairs
It's easy to file a car insurance claim for repairs when you follow these quick steps:
- Confirm your coverage type and deductible before filing.
- Document any damage to your vehicle with photos.
- Get a written repair estimate from a licensed shop.
- File a claim with your insurance company by phone, online, or via the mobile app, or contact your independent insurance agent to file the claim on your behalf.
- Pay your deductible and arrange repairs.
Remember that your insurer may reimburse you after you pay for your vehicle's repairs, or they may pay the repair shop directly after you've paid your deductible.
It's always helpful to work with an independent insurance agent, who can help you understand your specific policy's terms before filing a claim. Your agent can also file claims for you directly through your carrier and keep you updated through each step of the process.
How to Choose a Repair Shop When Filing an Insurance Claim
You're legally allowed to use any licensed repair shop for your vehicle. However, your insurance company may have a list of approved repair shops in a direct repair network that offer guaranteed repairs and cover costs that surpass the original estimate.
Standard auto policies default to aftermarket parts coverage. If you want OEM parts car insurance, you might need to add an endorsement to your auto policy. An OEM endorsement ensures that original manufacturer parts are used in your vehicle during repairs. Your independent insurance agent can help you add this endorsement to your policy.
FAQs About Car Insurance and Repairs
Does car insurance cover mechanical repairs?
No, standard auto insurance covers only accident-related and listed peril-related damage. For mechanical failures, drivers need MBI or an extended warranty. Check your auto policy to be certain of what types of coverage you have.
Does car insurance cover wear and tear?
No, wear and tear (e.g., worn brake pads, aging belts, rusted components) is not covered by any standard auto insurance policy. These are considered routine maintenance costs that the driver is responsible for.
What deductible applies when I file a claim for car repairs?
Your collision or comprehensive deductible applies depending on the cause of damage. Typical deductible ranges are $100-$1,000 for collision and $0-$2,000 for comprehensive. You pay the deductible amount out of your own pocket first, then insurance covers the remaining eligible costs up to your vehicle's ACV.
Does car insurance pay for repairs if the accident was my fault?
Yes, if you have collision coverage. Collision pays for physical damage repairs to your own car after an accident involving another vehicle or object regardless of fault, after you pay your deductible. Liability coverage only pays for damage you caused to other people's vehicles.
Will filing a repair claim raise my insurance rates?
Possibly. Filing a claim may cause your insurer to raise your rates at the time of renewal. If repair costs barely exceed your deductible, paying out of pocket may be more cost-effective. Talk to your independent insurance agent before filing a repair claim to understand the potential rate impact.
Is mechanical breakdown insurance worth it?
It depends on your vehicle's age, mileage, and repair risk. MBI typically costs $35-$85 per year and can pay for itself after a single major breakdown, considering an engine replacement alone can cost $4,000 or more. MBI coverage is best for vehicles 2-8 years old and that are outside of their factory warranty. Coverage is less valuable for cars still under manufacturer warranty or with very high mileage.
Does car insurance cover a rental car while my car is being repaired?
Only if rental reimbursement coverage was added to your policy. This optional add-on typically covers up to $600 per accident and $20-$50 per day for up to 30 days. It does not apply to breakdowns from mechanical failures unless you also have MBI.
Can I choose my own repair shop when filing a car insurance claim?
Yes, you have the legal right to use any licensed repair shop. However, shops listed in your insurer's approved direct repair networks guarantee their work and cover costs that surpass original estimates. Using an out-of-network shop may result in you having to pay any costs above the insurer's estimate. Learn more in our car insurance FAQ.
Here's How an Independent Insurance Agent Can Help
When you're ready to get set up with the right coverage for all types of repairs, no one's better equipped to help than a local independent insurance agent. These agents have access to multiple carriers in your area, so they're free to shop and compare coverage options and rates for you.
They'll get you set up with the best car repair coverage at a great rate. And down the road, your agent can help you file claims or update your policy when necessary.
Sources
https://www.moneygeek.com/insurance/auto/car-repair-insurance/
https://www.bankrate.com/insurance/car/mechanical-breakdown-insurance/
https://www.valuepenguin.com/car-repair-insurance-after-car-accident