Does Insurance Cover Transmission Replacement and Repair

If your transmission is acting up, you might wonder if your insurance will cover the repair or replacement costs. In most cases, insurance will cover transmission problems if they're caused by a covered event, such as a collision.

However, if your transmission fails due to wear and tear, you're likely on your own. Insurance policies typically don't cover maintenance-related issues.

Some policies may include additional coverage for transmission repairs, but it's essential to review your policy carefully.

Insurance companies will typically cover transmission replacement if the damage was caused by a covered peril, such as a flood, vandalism, or a collision.

New transmissions are expensive, and if your vehicle is older, the price of replacing the transmission may be more than the value of the whole vehicle, making it a total loss.

If your vehicle is totaled, it will be taken away to be sold as scrap, but you can keep the car for a fraction of its value on a salvage title if you prefer.

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Comprehensive car insurance won't cover transmission maintenance, but it may cover accidental, non-collision related damage, such as damage from fire or flooding.

In the case of Case Study 1, John's vehicle was caught in a flood, causing significant damage to the engine and transmission, which was covered by his car insurance company.

SR-22 insurance isn't actually insurance, but rather a document that the insurance company submits to the government, and it doesn't affect your coverage for transmission damage.

Mechanical Breakdown Insurance (MBI) is the only type of insurance policy that might cover the cost of a broken transmission, but it's not required by law and not all insurance companies offer it.

In Case Study 5, Richard's car experienced a sudden transmission failure due to general wear and tear or mechanical failure, which is not covered by auto insurance.

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Transmission replacement costs can be extremely pricey, especially if your vehicle is older and the transmission damage is extensive.

New transmissions are expensive, with prices that may be more than the value of the whole vehicle, especially if your car is old.

If your transmission needs to be replaced and your insurance company is paying for the damages, you'll need to work with the adjuster and mechanic to determine if the damage is repairable or if a new transmission is needed.

In some cases, the cost of replacing the transmission may be more than the value of the vehicle, making it a total loss and requiring your insurance company to reimburse you for the vehicle's value.

If your vehicle is totaled, it will be taken away to be sold as scrap, unless you choose to keep it for a fraction of its value on a salvage title.

You may be able to keep the full amount of the settlement minus any deductibles you owe, but this will depend on your insurance policy and the circumstances of the loss.

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A warranty or mechanical breakdown insurance can provide financial assistance in case your car's transmission fails. A warranty is a contract that covers repairs or replacement needed for your car, but generally won't pay for normal wear and tear, neglect, or maintenance issues.

There are two common types of warranty: bumper-to-bumper and powertrain. Bumper-to-bumper warranty covers most parts and systems, and generally lasts three to five years. Powertrain warranty is more limited, covering repairs or replacement of the car's powertrain.

Mechanical breakdown insurance (MBI) is another option that covers the costs of select repairs to essential components in your vehicle. It usually includes a deductible and can be purchased as an endorsement to an existing car insurance policy or as a standalone policy.

Here are the differences between a warranty and MBI:

A warranty is a contract that covers repairs or replacement needed for your car, but it won't pay for normal wear and tear, neglect, or maintenance issues.

There are two common types of warranties: bumper-to-bumper and powertrain. The bumper-to-bumper warranty covers most of a vehicle's parts and systems, and generally lasts three to five years.

This type of warranty may cover parts and labor for defects that are discovered, and could provide financial assistance after an engine failure, depending on the cause. If a part or system is not covered by this type of warranty, it is generally mentioned in the warranty documents.

The powertrain warranty is more limited, covering repairs or replacement of the car's powertrain – that is, the engine, transmission, driveshaft, and other components that help the car move. Only the parts and systems mentioned in the warranty documents are covered, anything else is excluded.

Warranties are usually in effect for a certain period of time or number of miles. For example, you might have one that is valid for three years or 30,000 miles, whichever comes first.

Here's a quick summary of the two types of warranties:

Mechanical breakdown coverage, also known as car repair insurance, can be purchased as an endorsement to an existing car insurance policy or as a standalone policy.

It usually includes a deductible, which means you'll have to pay a certain amount out of pocket before the insurance kicks in. This can be a good option if you have a higher-value car, which would be costly to repair.

In most cases, MBI would cover engine failure, which can be a huge relief if you're hit with a pricey repair bill. Some insurance companies offer this type of insurance, but not all do.

The average cost of a policy with MBI will vary from carrier to carrier, so it's worth shopping around to see who offers you the best rate.

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