Does Auto Insurance Cover Car Maintenance?

When it comes to car maintenance and repairs, it's critical to understand the coverage limitations of your auto insurance. While auto insurance is designed to protect against accidental damage, theft, or liability issues, routine maintenance and repairs are usually not covered under standard policies.

Standard Auto Insurance Coverage

Traditional auto insurance policies do not cover routine vehicle maintenance and repairs such as oil changes, tire rotations, or brake replacements. These costs are typically the responsibility of the insured individual and should be funded through personal savings or a vehicle service plan if available.

What Does Auto Insurance Cover?

Auto insurance is designed to financially protect you in case of:

Collision damage Theft of your vehicle Liability issues Injury or death to others caused by your vehicle

For example, collision coverage would help pay for repairs if your car is damaged in an accident, comprehensive coverage might help if your car is stolen or damaged by something unrelated to a collision, and liability coverage would help pay for damages or injuries you cause to others.

Optional Add-On Coverage

However, some auto insurance providers offer optional add-on coverage for car maintenance expenses. These add-ons can provide valuable protection for unexpected repair bills and major maintenance costs.

Tata AIGs Optional Add-Ons

TATA AIG, a reputable insurance provider, offers several optional add-ons that can help with maintenance and repair costs:

Zero Depreciation Cover: Pays for the full cost of covered parts without applying depreciation. This can significantly reduce major repair bills, as it covers the full price of the replaced parts without any reduction due to wear over time. Consumable Cover: Covers items like engine oil, oil filters, bearings, and other consumable parts that are essential for vehicle maintenance. If you submit a claim, these parts are covered without depreciation. Roadside Assistance Cover: Provides on-road assistance for repairs, towing, and jump starts if you encounter mechanical issues while driving. This can be particularly useful in unexpected situations where your vehicle breaks down on the road.

Routine Maintenance and Repair Costs

Routine maintenance and repairs should not be confused with the coverage of your insurance policy. Routine maintenance is the sole responsibility of the insured party. Insurance is designed to cover direct and accidental physical losses, not normal wear and tear.

Examples of Costs Not Covered

Oil changes Tire rotationsBrake replacements Replacements for major components like fuel pumps or transmissions that fail due to normal wear and tear

If your car's fuel pump or transmission fails, it is your responsibility to pay for the repairs unless the failure was caused by an accident. Running over something that causes a hole in the transmission may be covered under comprehensive coverage, but routine wear and tear is not.

Extended Maintenance Breakdown Insurance (MBI)

If you need to cover the cost of fixing mechanical issues once your vehicle's original warranty expires, you might consider purchasing maintenance breakdown insurance (MBI). Also known as mechanical breakdown insurance, this type of insurance can save you from paying thousands of dollars in repairs.

Key Characteristics of MBI

Not mandated by any state Not part of your normal auto insurance policy Usually not included with a new vehicle warranty Offered by major insurers Can save you from paying thousands in repairs for breakdowns

MBI covers specific issues not covered by the manufacturer's warranty, but it does not cover normal wear and tear. You must compare costs and shop around to find the best option that suits your needs.

How MBI Works

Repairs are typically done at an approved auto repair shop, and MBI providers often require that you have your vehicle serviced at a specific shop. Like traditional insurance, you have to pay a deductible before the insurer picks up the remainder of the costs. Deductibles for MBI are usually low, ranging from $250 to $400. Even with the deductible, replacing major components could run thousands of dollars, but the long-term savings can be significant.

While MBI can be a valuable add-on for those concerned about mechanical breakdowns, it's essential to understand that it is not a replacement for your regular auto insurance policy. It is designed to cover specific issues not covered by the manufacturer's warranty and normal wear and tear.