Does Auto Insurance cover Transmission Repair?

Does Auto Insurance cover Transmission Repair?

Auto insurance is designed to provide financial protection in case of unforeseen expenses related to your vehicle.

You might be curious about the extent of its coverage, for example, whether it includes transmission repair costs.

Unless you have a dedicated mechanical breakdown insurance policy, standard insurance plans typically don’t include transmission repair coverage unless the damage occurred as a result of a car accident.

Consequently, you might need to cover transmission repair expenses from your own funds.

An image illustrating ; Does Auto Insurance cover Transmission Repair
Does Auto Insurance cover Transmission Repair
Source: (freepik)

Is Transmission Repair Covered by Car Insurance?

Most car insurance policies won’t cover transmission repairs, except when they result from an auto accident.

To have your transmission repair costs covered, you’ll generally need to meet one of these conditions:

  1. Have mechanical coverage.
  2. Prove the damage is due to a recent accident and you have full coverage.
  3. Possess a warranty that includes transmission damage.

Some companies offer alternative coverage options that may include transmission repairs, such as:

  • Warranties for newer vehicles, protecting against certain types of damage, including transmission issues.
  • Mechanical breakdown insurance (MBI) coverage, which safeguards you against mechanical problems, including transmission repairs.

Keep in mind that you usually need to obtain these policies before needing transmission repairs.

You can often get a warranty from the dealership, while MBI insurance may be available through your current insurance provider.

Combining policies may even lead to a multi-policy discount.

What Is Mechanical Breakdown Insurance (MBI)?

MBI is car repair insurance that covers common repairs like your transmission.

It can be a good idea if your car warranty has expired.

You can buy MBI from your dealership or your insurance company, which often offers better rates.

The cost varies by provider and depends on factors like your car type, mileage, coverage length, and protection level.

Most plans have a deductible, the amount you pay before coverage kicks in, but it’s usually less than repair costs.

MBI doesn’t replace routine maintenance like oil changes, so you’re still responsible for that.

Rates and requirements vary among providers, so it’s wise to shop around for the best coverage and rates.

Who Pays for Transmission Damage After an Accident?

If your transmission is damaged in an accident, it might be covered if you have full insurance.

Full insurance includes comprehensive and collision coverage.

Basic liability insurance only covers the other driver’s damages when you’re at fault.

In no-fault states, your insurance typically pays for transmission repairs, while in tort states, it’s the at-fault driver’s insurance.

Keep in mind, full insurance doesn’t usually cover mechanical repairs unless they’re accident-related.

An image illustration of Auto Insurance covering Transmission Repair
Auto Insurance covering Transmission Repair
Source: (freepik)

How to Take Care of Your Transmission

While an MBI policy may cover some wear and tear, it usually doesn’t cover user neglect.

Following your car’s maintenance schedule helps prevent expensive repairs, like transmission or engine issues.

Transmissions repairs can cost $1,800 to $3,400.

Ensure you have enough coverage for accident-related damage.

Traditional car insurance won’t cover non-accident transmission damage; you need extra mechanical insurance.

Choose a policy with the coverage and deductible you’re comfortable with and consider additional insurance for all repairs.

Frequently Asked Questions

  • Is it possible to make an insurance claim for gearbox issues?
  • Can transmission problems lead to accidents covered by insurance?
  • Does insurance provide coverage for a damaged engine?
  • What occurs if my engine fails, but I still have an outstanding loan?
  • How much is the typical expense to fix an engine that’s gone bad?

ALSO READ : Does Auto Insurance cover Transmission Failure?

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