Over the past 20 years, the price of vehicle parts has increased by more than 60%. Repairs have gotten significantly more expensive, too, costing owners nearly 10 cents a mile. That equates to almost $1,500 a year. With the rising costs of repairs, it’s no wonder drivers are hoping their car insurance covers repairs.
Can Car Insurance Cover Repairs?
In general, car insurance doesn’t cover common vehicle repairs, such as transmission problems on vacation or mechanical breakdowns. Some types of insurance can pay for repairs after automotive accidents, vandalism, and weather-related damage.
All car insurance coverage for repairs has detailed conditions, limitations, and exclusions, so it’s important to review the terms carefully with your agent before choosing a policy. Which repairs are covered, when, and how much varies by insurer and depends on your deductible.
When Does Car Insurance Cover Repairs?
Automotive insurance can reimburse you for repair costs (or even vehicle replacement) in specific situations.
1. Another Driver Causes a Car Accident
When you’re in a car accident caused by another vehicle, you can file a claim against the driver’s insurance company to pay for repairs to your vehicle. This generally requires you to get a quote for the work from a reputable repair shop. In many areas, automotive liability insurance also covers towing and car rental costs in the meantime.
What Repair Costs Does Liability Insurance Cover?
Property damage liability insurance is mandatory for all U.S. drivers (except in Virginia and New Hampshire), but the minimum coverage varies by state:
- Arizona, California, Colorado, Utah, and other states: $15,000 per accident
- Minnesota, New York, Vermont, and elsewhere: $10,000 per accident
- Georgia, Iowa, Missouri, Texas, and 21 other states: $25,000 per accident
- Massachusetts, New Jersey, and Pennsylvania: $5,000 per accident
This can lead to situations where the other driver’s insurance coverage is insufficient to pay for the full repair costs to your vehicle, leaving you on the hook for the rest.
What If You’re Driving a Leased Car?
Dealerships usually cover maintenance and repairs for leased vehicles under the OEM warranty. The contract terms outline who is responsible for accident repairs. Some leases require you to carry gap insurance.
How Does Insurance Coverage for Vehicle Repairs Work in No-Fault States?
No-fault insurance is also known as personal injury protection. It only helps with medical costs after a car accident, not vehicle repairs. Even in no-fault states, you only get help with repair costs if the other driver was responsible for the accident or you have collision coverage.
2. Your Insurance Policy Offers Full Accident Coverage
If you have full coverage, your car insurance policy can cover the repair costs for your vehicle regardless of who was at fault in an accident. This includes:
- Coverage when you’re on the road in all 50 states and Canada
- Animal collisions
- Single-car accidents
- Crashes with other drivers
The amount covered depends on how much you pay each month and the size of your deductible. Keep in mind that if you damage other vehicles or property, the remaining coverage for your car’s repairs can be lower.
3. You Weren’t Driving When the Damage Happened
Full coverage car insurance will usually cover repair costs for vehicle damage that happens at work, at home, or in a parking lot. For example:
- A lawn mower throws a rock at your parked car
- An angry coworker keys your car
- Someone backs into your car while you’re getting groceries
- Criminals steal vehicle parts, like your catalytic converter
This type of insurance coverage has specific limitations, so depending on your policy, you may still pay for some or all of the damages.
4. Bad Weather Is Responsible for the Damage
Some types of car insurance cover vehicle repairs for weather-related damage. A common example is hail damage. In most states, insurance covers damage to the vehicle’s exterior as well as any glass.
Cracks expand over time, so what was initially a repair job can require full replacement. If you wait too long to file a claim, the insurer may refuse to cover the damage.
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What Type of Car Insurance Will Cover Repairs?
To make sure your car insurance covers repairs after a crash, you need to select the right policy.
Collision Coverage
Collision insurance covers repairs to your vehicle when you get into a car accident, such as:
- Losing control because of icy roads and sliding into a tree
- Running into a deer at night
- Colliding with a car in your blind spot
- Getting into an accident on the highway
- Accidentally backing into another vehicle
Full coverage insurance generally includes some collision coverage, but amounts and deductibles vary.
Comprehensive Coverage
Comprehensive car insurance covers weather-related repairs, vandalism, and vehicle fires (not from overheating). For example, if a heavy branch falls on your car while it’s parked in the driveway, the insurance company can reimburse you for repairs, towing, and rental car costs. Some policies also cover theft of vehicles and vehicle parts.
Uninsured or Underinsured Motorist Coverage
UM/UIM car insurance is designed to help in situations where the at-fault driver isn’t carrying liability insurance or the minimum coverage isn’t enough to pay for your repairs. Uninsured/underinsured motorist insurance only kicks in after other coverage, so you may still need to pay a deductible.
Mechanical Breakdown Insurance
MBI covers vehicle repair costs, replacement parts, and optionally rental car reimbursement. MBI isn’t really car insurance, even though several insurers offer it. This type of policy is essentially an extended car warranty, and it only applies to new or leased vehicles.
What Can You Do About Car Repairs That Car Insurance Doesn’t Cover?
You don’t have to resign yourself to paying for most car repairs out of pocket. With a vehicle protection plan, you can get coverage for transmission issues, engine failure, electronic parts, and other problems. VPPs are available for used vehicles, not just new cars.
There are times when car insurance does cover car repairs. For other situations, like unexpected breakdowns, you’ll be happy you have a VPP and 24/7 roadside assistance. Contact us to learn more.
Common Questions & Answers
A: No—standard auto insurance doesn’t cover wear and tear, mechanical breakdowns, or routine maintenance. These types of repairs are your responsibility unless you have a vehicle protection plan or extended warranty.
A: Yes—but only if you have collision coverage on your policy. This covers repairs to your own vehicle after a crash, regardless of fault, minus your deductible.
A: Yes—comprehensive coverage pays for damage caused by events like theft, vandalism, hail, falling objects, natural disasters, and animal collisions. Your deductible applies.
A: Typically yes. The at-fault driver’s liability insurance should cover your repair costs. If there are delays or disputes, your insurer may handle the repairs first and seek reimbursement.
A: If you have uninsured or underinsured motorist coverage (UM/UIM) and your state allows it to cover property damage, your own insurance can help pay for repairs.
