Does Car Insurance Cover Mechanical Repairs?

Many drivers assume their auto insurance will pay when something breaks on their vehicle. But what happens when your engine, transmission or electrical system fails?

In most cases, standard auto insurance does not cover mechanical breakdowns caused by normal wear and tear. Understanding the difference between insurance and a Vehicle Service Contract (VSC) can help you avoid an expensive surprise.

What Does Car Insurance Typically Cover?

Auto insurance is primarily designed to protect you from specific risks such as accidents, theft, vandalism, fire and weather-related damage, depending on the coverage you purchase.

For example, if another vehicle hits your car and damages the transmission, your insurance may cover the resulting damage if the loss is covered by your policy. However, if your transmission simply fails while you're driving because of an internal mechanical problem, your standard auto insurance generally won't pay for the repair.

The same principle can apply to an engine failure, failed alternator, worn suspension component or other mechanical breakdown.

What About Wear and Tear?

Normal wear and tear is one of the biggest reasons a mechanical repair isn't covered by traditional auto insurance. Components eventually wear out or fail simply because of age, mileage and use.

That's where the distinction between insurance and a VSC becomes important.

Where Does a VSC Come In?

A Vehicle Service Contract is designed to help pay for covered mechanical and electrical repairs, subject to the specific contract's terms, conditions, limitations and exclusions.

Depending on the coverage selected, a VSC may help with eligible repairs involving major components such as the engine, transmission, drivetrain and electrical systems.

Unlike auto insurance, the purpose of a VSC is not to cover collision damage or theft. Its purpose is to provide protection against covered mechanical and electrical breakdowns.

Why Does This Matter?

Imagine your vehicle's transmission fails six months after your factory warranty expires. Your auto insurance may not cover the breakdown simply because there was no covered accident or other insured event.

If you have an applicable VSC, however, the repair may be covered according to the terms of your contract.

At XpressVSC, we believe understanding your protection is just as important as having it.

Before a breakdown happens, know what your insurance covers, what your VSC covers and where the two differ.

XpressVSC — Protection From Unexpected Repair Costs.

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