Car repair insurance, or mechanical breakdown insurance, covers mechanical and electrical repairs not caused by accidents, such as engine or transmission failures. Unlike standard auto insurance, it focuses on non-accident issues and differs from extended warranties, which cover wear and tear after the manufacturer’s warranty ends.
Car Repair Insurance
Progressive, GEICO and Allstate are the top car repair insurance providers, offering reliable coverage to help with unexpected vehicle repair costs.
Find out if you're overpaying for auto insurance below.

Updated: March 28, 2025
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Key Takeaways
GEICO, Allstate and Progressive are the top providers of car repair insurance.
Auto repair insurance is a valuable add-on for drivers with expired or limited car warranties or vehicles with costly repair needs.
Car repair insurance has a deductible and doesn't cover routine maintenance or damage from misuse.
What Is Car Repair Insurance?
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What Car Repair Insurance Covers
Car repair insurance covers major mechanical components like the engine and transmission but excludes routine maintenance, cosmetic repairs, and wear and tear. It applies only to new issues that occur after the policy starts, not to pre-existing conditions.
Car Repair Insurance Coverage
The table below lists the components that car repair insurance typically covers and excludes, helping you understand its scope.
What It Covers | What It Doesn’t Cover |
---|---|
Engine components | Seats and other cosmetics |
Transmission system | Routine car maintenance |
Fuel system | Parts prone to wear and tear |
Exhaust system | Rust |
Electrical systems | Repairs required from neglecting routine maintenance |
Steering mechanism | Damage from accidents, modifications, abuse or misuse |
Cooling and heating systems | Components covered under a factory warranty or subject to a manufacturer recall |
Braking system components (excluding wear-and-tear parts) | |
Suspension components | |
Drive axles and joints | |
Onboard computers and sensors | |
Safety features (e.g., airbag system) |
Who Should Get Car Repair Insurance?
Car repair insurance is an excellent choice for those with limited warranty coverage, expired warranties or vehicles with high repair costs.
Your warranty is limited
If your car's manufacturer warranty is limited in scope, car repair insurance can provide additional coverage for crucial components or services.
Your warranty has expired
Car repair insurance is a good option when your car's original warranty has ended, offering financial protection against unexpected mechanical failures.
You can't afford out-of-pocket repairs
Car repair insurance helps manage major repair costs by converting large bills into affordable payments, easing financial strain.
Your car is expensive to repair
Car repair insurance is a smart choice for vehicles with expensive repair costs.
How to Get Insurance to Pay for Car Repair
Auto repair insurance covers unexpected mechanical breakdowns. To file a claim and get reimbursed, follow these steps:
- 1
Confirm your coverage
Review your policy to confirm coverage and understand the deductible.
- 2
Get a diagnosis
Visit a licensed repair shop for an inspection and get a written repair cost estimate.
- 3
File a claim
Submit the repair estimate and any required documentation to your insurer for approval.
- 4
Pay the deductible
Once approved, pay your deductible before the insurance covers the remaining cost.
- 5
Complete the repairs
Your insurer may either pay the repair shop directly or reimburse you after the repairs are completed, depending on its process.
According to Kelley Blue Book, repairing a Subaru Forester costs an average of $1,784, while the Ford F-Series, the top-selling U.S. vehicle in 2024, averages $2,149. These differences highlight how repair costs vary by model, underscoring the financial impact of mechanical issues.
Best Car Repair Insurance Companies
The best car repair insurance companies, including GEICO, Allstate and Progressive, offer mechanical breakdown coverage for newer vehicles. These policies cover unexpected failures and often include deductibles ranging from $50 to $500. Choosing the right provider depends on your vehicle’s age, repair costs and coverage needs.

Progressive covers essential vehicle components, including the engine, transmission and brakes. It offers 24/7 roadside assistance and rental car reimbursement, ensuring peace of mind during unexpected repairs.

GEICO’s mechanical breakdown insurance covers major systems like the engine and transmission, protecting against costly repairs. It includes 24/7 roadside assistance, rental car reimbursement and flexible coverage for newer vehicles.

Allstate offers car repair insurance with multiple coverage levels, including powertrain protection and mechanical breakdown coverage. Plans come with 24/7 roadside assistance, rental car benefits and trip interruption coverage for added convenience.

AAA’s car repair insurance covers major mechanical components, offering comprehensive protection beyond traditional insurance. Additional perks include 24/7 roadside assistance, rental car reimbursement and trip interruption benefits.
Car Repair Insurance vs. Other Types of Coverages
Car repair insurance protects against unexpected repair costs, but knowing how it compares to other options is crucial. Many car insurance companies offer mechanical breakdown insurance, but it’s usually only for newer cars, typically less than two years old. If you plan to keep your car for many years, an extended warranty might offer more protection after the manufacturer’s warranty ends.
The table below highlights the main differences between car repair insurance, extended warranties and standard auto insurance.
Aspect | Car Repair Insurance | Extended Warranty | Collision and Comprehensive Insurance |
---|---|---|---|
Purpose | Covers specific car repairs not related to accidents | Extended service contract for car repairs after manufacturer's warranty | Covers damage to your car from accidents, theft or natural events |
Coverage | Major mechanical parts like the engine and transmission | Defects in materials and workmanship, specific parts | Accident damage, theft, natural disasters, vandalism |
Cost factors | Car model, age, mileage, coverage level | Included in car purchase or as an additional cost for extended warranties | Car value, driving record, location, coverage limits |
Typical duration | Ongoing, usually renewable annually | Limited time or mileage, e.g., three years or 36,000 miles | Typically annual, renewable |
Other Car Repair Insurance Options
Explore more auto repair insurance options to find coverage that fits your needs. The table below lists companies with plans and benefits to help you manage expensive repairs.
Company | Offer |
---|---|
Endurance | Covers engine, transmission, electrical systems and more, with 24/7 roadside assistance, rental car benefits and trip interruption coverage |
CarShield | Provides multiple plans, from basic to comprehensive, flexible payment options and allows the choice of a repair facility |
Mechanical Breakdown Insurance: Bottom Line
Compare providers to find affordable car repair insurance. This guide covers coverage options, exclusions, cost factors and top providers offering reliable, budget-friendly repair plans.
Compare Auto Insurance Rates
Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.
Auto Repair Insurance: FAQ
Find answers to common questions about car repair insurance, including what it covers, its costs and how it can benefit you.
What is car repair insurance?
Car repair insurance, or mechanical breakdown insurance, covers repair costs for mechanical and electrical components not included in standard policies.
What does car repair insurance cover?
Car repair insurance typically covers major mechanical components such as the engine, transmission, electrical systems and other crucial parts for your car's operation. However, it doesn't cover routine maintenance or wear and tear.
Should you get car repair insurance?
Car repair insurance is worth considering if your car is expensive to repair, lacks warranty coverage, or you have limited savings for unexpected repairs. It’s less useful for vehicles with solid warranties or low repair costs.
Does car repair insurance have a deductible?
Auto repair insurance requires a deductible. After paying it, the insurance covers the remaining eligible repair costs. You can file a claim with your insurer, which will either reimburse you or pay the repair shop directly, depending on your policy.
Car Repair Insurance Companies: Our Review Methodology
MoneyGeek uses data from hundreds of car insurance companies to analyze rates. We source information from trusted agencies, including:
- AM Best: Provides insurance credit ratings and data analytics
- J.D. Power: Specializes in insurance research, analytics and rankings
- National Association of Insurance Commissioners (NAIC): Offers data and analysis to help consumers make informed decisions
- Quadrant Information Services: Delivers accurate car insurance pricing analytics and comparative data
MoneyGeek's editorial standards prioritize clarity and usefulness. Topics are thoroughly researched to answer common questions. Our editorial team conducts rigorous editing, fact-checking and review to ensure the accuracy and reliability of each article.
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About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Kelley Blue Book. "The 25 Best-Selling Cars of 2024." Accessed March 28, 2025.
- Kelley Blue Book. "Here’s How Much the Average Car Repair Now Costs." Accessed March 28, 2025.