Car repair insurance, also known as mechanical breakdown insurance, helps pay for repairs if your car has a mechanical or electrical problem. This coverage can help reduce your out-of-pocket repair expenses.
If you’ve purchased a vehicle before, you’re probably familiar with extended warranties. Until your warranty expires, many repairs may be covered. However, once your warranty is over, you’re on the hook for any repairs your car needs going forward. Repair costs can add up quickly, so if you’re worried about large expenses after your warranty ends, consider car repair insurance.
Key takeaways
- Car repair insurance usually helps cover repairs related to mechanical or electrical issues with your vehicle.
- Maintenance, upkeep, and damage from wear and tear are not usually covered by car repair insurance.
- Before buying car repair insurance, check whether you’re already covered by a warranty, whether you can choose your repair shop, and whether your vehicle meets the insurer’s age and mileage requirements. Coverage details, transferability, and additional benefits—such as roadside assistance or rental reimbursement—vary by policy.
How is car repair insurance different from an extended warranty?
Car repair insurance is offered by insurers and regulated like other insurance policies, while extended warranties are typically offered by vehicle manufacturers, dealerships, or third-party providers. Depending on the provider, there may be differences in repair shop options, deductibles, and transferability.
What does car repair insurance cover?
Car repair insurance usually covers several types of mechanical issues and breakdowns, but it doesn’t cover routine maintenance, certain types of damage, or normal wear and tear. Here’s what car repair insurance may cover or exclude:
Car repair insurance usually covers
- Air conditioning
- Fuel systems
- Cooling systems
- Steering components
- Electric systems
- Computer systems
- Transmission
- Engine
- Exhaust
Car repair insurance usually doesn’t cover
- Routine maintenance and upkeep, such as oil changes, tune-ups, and tire rotations
- Damage related to improper maintenance
- Cosmetic wear and tear
- Pre-existing damage
- Rust or corrosion
- Damage from an accident (that’s covered by your collision or comprehensive insurance)
Car repair insurance coverage by type of repair
If you’re wondering about a particular system or type of repair, use this table as a general guide to what’s commonly covered and excluded by car repair insurance. Coverage varies by insurer and policy.
| Category | What’s covered by car repair insurance | What’s not covered |
|---|---|---|
| Air conditioning | Repairs to air conditioning system components, such as the compressor and condenser. | Routine maintenance like recharging Freon or replacing hoses due to wear or corrosion. |
| Fuel systems | Mechanical issues with the fuel system, including fuel pumps or injectors. | Damage caused by poor maintenance or contamination. |
| Cooling systems | Repairs for radiators, water pumps, and other cooling system components. | Routine maintenance or corrosion-related damage. |
| Steering components | Mechanical failures in steering systems and power steering pumps. | Wear-and-tear parts like steering fluid, alignments, or normal degradation. |
| Electrical systems | Failures in the alternator, starter, wiring, or other electrical system components. | Batteries, bulbs, and fuses (routine maintenance items). |
| Computer systems | Malfunctions in onboard computers or sensors related to vehicle operation. | Software updates, aftermarket installations, or non-OEM systems. |
| Transmission | Coverage for transmission or transaxle failure caused by sudden mechanical breakdown. | Damage due to neglect, overheating, or lack of maintenance. |
| Engine | Repairs for major internal engine components that fail mechanically. | Damage caused by improper maintenance or oil neglect. |
| Exhaust system | Repairs to exhaust system parts like the manifold or catalytic converter. | Rust, corrosion, or wear-related exhaust issues. |
| General exclusions | — | Routine maintenance and upkeep (oil changes, tune-ups, tire rotations), cosmetic wear and tear, damage from accidents, pre-existing issues, and corrosion or rust. |
Is car repair insurance worth it?
Car repair insurance can offer several benefits, especially for drivers who prefer having repairs handled by professionals. In addition, car repair insurance can also provide peace of mind by helping reduce the financial impact of unexpected repair costs. However, car repair insurance isn’t a one-size-fits-all solution. Consider the following questions when deciding whether it’s right for you:
Answer these questions to decide if you need car repair insurance
- Are you already covered? If you just purchased your car, your warranty may still be in effect and may cover most of your repairs. Since car repair insurance covers a lot of similar ground as an extended warranty, you probably don’t need to purchase both.
- Can you select the repair shop? Most insurers will allow you to choose your preferred repair shop, but some carriers will only let you visit one of their approved partners.
- How old is your car? You might want to consider car repair insurance as your vehicle gets older or if you purchase a used vehicle with higher mileage, if eligible. However, if your vehicle is newer and still under warranty, additional coverage may not be necessary. Mechanical issues involving systems such as the engine, electrical components, or fuel system can become more common as vehicles age, although timing varies by vehicle and driving conditions.
- Does the policy include extra benefits? Some car repair insurance policies include roadside assistance, rental reimbursement coverage, and trip reimbursement coverage as added benefits.
- Is the coverage transferable? If you plan on selling your car in the future, some policies let you transfer your coverage to the new owner.
- Is your car eligible for car repair insurance? Some insurers set strict age and mileage guidelines when determining who’s eligible for car repair insurance. You may not be eligible for a policy if you have an old car that’s surpassed the designated mileage limit. If you can secure a policy, you might not be able to renew it as your car ages.
- Is car repair insurance a good fit for your budget? If you prefer predictable costs and want to avoid large, unexpected repair bills, car repair insurance can be a smart choice. But if you have an emergency fund or can afford out-of-pocket repairs, you may not need the extra coverage.
- What’s your comfort level with repair risks? Drivers who’d rather pay a small monthly premium than risk a big repair expense may find car repair insurance worth it. If you’re comfortable taking the chance and covering repair costs yourself, it might not offer enough value.
Alternatives to car repair insurance
If car repair insurance isn’t available to you or doesn’t fit your needs, there are other ways to prepare for future repair costs. Consider setting aside money in an emergency car fund that’s dedicated to unexpected vehicle repairs. Depending on your vehicle and eligibility, you may also be able to purchase an extended warranty from the manufacturer.
Get coverage you can count on with The General®
The General does not currently offer car repair insurance and this article is for informational purposes only.
If you’re looking for coverage for a new or used vehicle, The General® may have options that fit your needs. For more than 60 years, The General has helped drivers find coverage with flexible payment options and convenient ways to manage their policies. Get a free insurance quote and explore your coverage options today.
Frequently asked questions
What is mechanical breakdown coverage?
Mechanical breakdown coverage, also known as car repair insurance, helps pay for repairs when your car experiences unexpected mechanical or electrical failures not caused by an accident or normal wear and tear. Depending on the policy, it may cover essential systems such as the engine, transmission, steering, and electrical components—offering protection beyond what standard car insurance provides.
Are car repair insurance and mechanical breakdown coverage different?
Car repair insurance and mechanical breakdown coverage generally refer to the same type of protection that helps pay for covered vehicle repairs after your factory warranty expires. Some insurers use the term mechanical breakdown insurance instead, but both cover major systems like the engine, transmission, and electrical components when they fail unexpectedly.
Is automobile repair insurance the same as car maintenance insurance?
No—automobile repair insurance and car maintenance insurance are not the same. Car or automobile repair insurance helps pay for unexpected mechanical or electrical failures, like engine or transmission issues. Car maintenance insurance, on the other hand, covers routine upkeep such as oil changes, tire rotations, and inspections. In short, repair insurance protects you from surprise breakdowns, while maintenance insurance helps manage regular service costs.
