Does car insurance cover repairs?

Types of repairs covered by car insurance

Car insurance can help cover repairs based on what type of coverage you have. You can choose coverage to protect against damage from accidents, theft, vandalism or natural disasters. Most policies won’t cover routine maintenance or mechanical breakdowns unless you have additional coverage.

The two most common types of coverage for repairs are collision and comprehensive:

• Collision coverage: Pays for repairs if your car is damaged in an accident, regardless of fault. This includes damage from hitting another vehicle, a tree or a guardrail.
• Comprehensive coverage: Covers non-collision damage, such as theft, vandalism, fire, flooding or hail. If a tree branch falls on your car or your windshield cracks due to a rock, comprehensive insurance may cover the repairs.

Collision and comprehensive insurance protect your vehicle, but liability insurance only covers damage to others. If you're at fault in an accident, your liability insurance will pay for repairs to the other driver’s car and their medical expenses, but it won’t cover damage to your own vehicle.

To repair your car after an accident, you’ll need collision coverage or an uninsured/underinsured motorist policy if the other driver doesn’t have enough coverage.

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Mechanical breakdown insurance (MBI)

Mechanical breakdown insurance (MBI) is an optional coverage offered by some insurance providers that helps cover the cost of mechanical repairs if your vehicle experiences unexpected breakdowns. Similar to a warranty, MBI typically covers repairs to most original mechanical parts of the car, though it does not cover routine maintenance or wear and tear.

For instance, GEICO offers MBI policies for vehicles less than 15 months old with fewer than 15,000 miles. After paying a deductible, GEICO's MBI covers repair costs for eligible mechanical failures, with the option to renew coverage for up to seven years or 100,000 miles. GEICO claims its MBI policies typically cover more than dealership extended warranties.

Not all insurers offer MBI, so it’s important to compare coverage limits, exclusions and costs before choosing a policy.

How to file a claim for car repairs

Filing a car insurance claim can seem daunting, but following a structured process ensures a smoother experience. Here’s a step-by-step guide to help you navigate the claims process for car repairs:

1. Call the police: If you're involved in an accident, notify the police. Many insurance companies require a police report, even if no one is injured. If there are injuries, call 911. If no one is injured, contact your local non-emergency line. A police report helps prevent disputes and provides an official record of the incident.
2. Notify your insurance provider: Report the incident to your insurance provider as soon as possible, even if you’re still at the scene. Quick reporting helps ensure coverage for damages, regardless of fault.
3. Gather and submit required documentation: Your insurer may require a proof of claim form, photos of the damage and possibly a police report. Many insurers allow you to upload photos and start the claim process through a mobile app.
4. Understand claim timing: Ask about the deadlines for filing claims, submitting repair bills and providing additional information. Understanding these timelines will help you stay on track and avoid delays.
5. Check for rental car coverage: If your car needs repairs, find out if your policy covers rental car costs. Also, ask about the repair estimate process so you understand how the repairs will be approved and paid for.
6. Submit additional information promptly: If your insurer requests further details or documentation, respond quickly to avoid delays in claim approval and repair scheduling.

What is not covered by car insurance

While car insurance provides valuable protection, it doesn’t cover everything. Policies have exclusions, meaning certain situations won’t be reimbursed, leaving you responsible for the costs. Though exclusions vary by insurer and location, here are some common things standard policies don’t cover:

• Routine maintenance and wear-and-tear: Regular upkeep, like oil changes, tire rotations and brake replacements, isn't covered. Similarly, damage from normal wear and tear, such as worn-out tires or brake pads, is excluded.
• Intentional damage: If you intentionally damage your vehicle or someone else's property, your insurance won’t pay for repairs.
• Preexisting damage: Insurance won’t cover damage that existed before you bought your policy or filed a claim.
• Custom parts and aftermarket modifications: Unless specifically added to your policy, custom parts such as rims, spoilers or upgraded sound systems are usually excluded.
• Commercial use: If you use your personal vehicle for business purposes (like rideshare driving or deliveries), your policy may not cover accidents unless you have a commercial or rideshare policy.
• Racing or illegal activities: Damage that occurs while racing or engaging in illegal activities isn’t covered.

Every policy has unique terms, so reviewing your specific exclusions with your insurer helps you avoid unexpected costs. Understanding these limitations allows you to make informed decisions about additional coverage options.

How to choose the right coverage for your needs

Finding the right car insurance means balancing adequate protection with affordability. The best policy offers solid coverage without unnecessary costs. Here are key factors to consider when choosing car insurance:

• Coverage types: Determine the types of coverage you need, such as liability, collision or comprehensive, to ensure you’re protected in different situations.
• Policy limits: Review your insurer's maximum payout limits for claims to ensure they align with your needs. Higher limits offer better protection but may increase costs.
• Deductibles: A higher deductible lowers your premium but increases out-of-pocket expenses if you file a claim. Choose a deductible that fits your budget.
• Premium costs: Compare quotes from multiple insurers to find the best balance between price, coverage and service quality.
• Discounts: Look for savings through safe driving rewards, policy bundling or vehicle safety features to reduce your premium.
• Customer service and claims process: Research customer reviews to see how insurers handle claims. A company with efficient processing and strong customer support can make a big difference when you need help.

By carefully evaluating these factors and comparing options, you can find car insurance that fits both your budget and coverage needs.

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