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What is Car Repair Insurance?

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Car breakdown

What is Car Repair Insurance?

Depending on the coverage you opt for, conventional car insurance may help you out if you’re in an accident, if your vehicle is stolen, or if it’s trashed by a natural disaster. However, if your car has a simple breakdown, most insurance won’t help you out with covering the cost of repairs. Car repair insurance, also known as mechanical breakdown insurance, can help if you’re in a jam. But is this specialized coverage worth it for your wallet? Here are some factors to consider.

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What’s covered by car repair insurance?

Policies may vary, but car repair insurance typically covers the climate control system, the cooling system, engine issues, the fuel line, exhaust system problems, the steering system, and transmission care. It should also cover electrical issues, including those pertaining to the car’s main computer system.

Keep in mind that you’ll still have to pay the deductible specified by your insurance policy. For example, if your deductible is $300, and the total cost of repairs comes to $1,000, your insurance provider will pay out $700. You’ll be paying for the first $300 of the costs.

What isn’t covered?

There are many issues that aren’t covered by car repair insurance. This list includes car accident damage, standard wear and tear (like needing new tires), routine maintenance, and non-mechanical issues, like paint scrapes, corrosion, and damage to your vehicle’s molding. It also won’t cover any owner errors, like using the wrong fluid or fuel in your vehicle.

Furthermore, it won’t pay for anything that’s covered by a manufacturer warranty, a voluntary manufacturer recall, or problems that existed before you purchased coverage.


Not every vehicle qualifies for car repair insurance. In order to be eligible, your vehicle will typically need to be below a certain mileage limit. That’s usually between around 65,000-90,000 miles. If you have coverage when your vehicle surpasses your policy’s mileage limit, your car repair insurance coverage will typically be removed. This may vary from provider to provider, so be sure to read the fine print.

For more information on car insurance, check out these articles.