No, insurance does not cover a car’s transmission, unless you have mechanical breakdown insurance coverage. Mechanical breakdown insurance is an auto insurance policy add-on that covers the failure of major vehicle systems, including a car’s transmission. Even mechanical breakdown insurance only covers sudden malfunctions, though, not normal transmission maintenance or damage caused by ordinary wear and tear.
Several major insurance companies, including Geico and Allstate, offer mechanical breakdown insurance, which costs about $100 annually. If you have mechanical breakdown insurance and use it to fix a broken transmission, you will only need to pay your deductible. Most mechanical breakdown deductibles are about $250. By comparison, a new transmission can cost anywhere from $800 to $3,400.
CarShield costs $99 per month and up, though prices vary by state, driver, and specific vehicle. CarShield sells vehicle service plans, which are similar to extended warranties and will cover the cost of repairs to the car’s systems and mechanical parts.
Key Things to Know About CarShield Plans
CarShield plans cover your vehicle’s engine, transmission, transfer case, drive axle, water pump.… read full answer
Six different plans are available from CarShield, giving drivers options in terms of coverage and cost.
To qualify for a CarShield plan, cars must fulfill certain eligibility requirements, though the company does not disclose the exact requirements. Eligibility can also vary by plan.
Specific details may vary based on which CarShield plan drivers purchase, but this list provides a good example of CarShield coverage.
CarShield vs. Extended Warranties From Major Insurers
Although exact coverage may differ for the providers above, all of them cover the main parts or systems. These include the engine, transmission, brakes, suspension, and steering.
It’s also worth noting that mechanical breakdown insurance from a car insurance company is often a cheaper alternative to a third-party vehicle service plan or extended warranty. For more information, check out WalletHub’s guides to mechanical breakdown insurance and extended warranties.
It is important to note that normal liability car insurance won’t cover theft because it only protects other drivers from bodily injury and property damage resulting from an accident you cause.… read full answer
What Insurance Covers If Your Car Is Stolen
Your insurance company will pay your car’s depreciated value, or actual cash value (ACV), minus your deductible, if you have comprehensive coverage.
If your vehicle is financed and you owe more than your car is worth, gap insurance will cover the difference between your car’s actual value and the balance owed.
Although comprehensive coverage will apply if your vehicle is stolen, no type of car insurance will cover theft of your personal items from your vehicle. Your phone, laptop, or other valuables should be listed on your homeowners or renters insurance policy, even if you often leave them in your car.
If your car is stolen, file a police report as soon as possible—ideally within 24 hours. Not only will this improve your chances of recovering the car, but you’ll also need a police report to file a claim with your insurance provider. After you’ve filed a report, you should contact your insurer to start the claims process
Car insurance does not cover intentional damage, general maintenance, or damage caused by normal wear and tear. Minimum car insurance coverage does not cover the policyholder’s injuries or vehicle damage, either, only providing liability insurance to pay for injuries and property damage caused to others.
However, exact coverage exclusions vary between policies. In addition, insurance companies offer extra policy add-ons that can protect you in situations that don’t fall under minimum car insurance coverage.… read full answer
What Car Insurance Never Covers
Damage caused by normal wear and tear
Intentional damage (sometimes including DUI)
Damage that exceeds the limits of your liability policy
Personal belongings stolen from your car
What Car Insurance Does Not Cover Normally
Custom parts and equipment
Liability, comprehensive and collision car insurance do not cover customized parts and equipment, such as undercarriage lighting or third-party sound systems. However, some insurance companies offer add-on coverage to protect those types of things.
Your Car Loan or Lease If Your Vehicle is Totaled
Even if you owe your lender more than your car is worth when it’s totaled or stolen, your insurance company will only cover the replacement cost of the vehicle. Gap insurance is a policy option that covers the dollar-amount “gap” between what a car is worth and what is owed on the loan.
Driving Your Car for Rideshare or Delivery
If you’re driving your car as a way to make money, then your personal insurance policy might not cover you if you’re involved in a wreck on the job. While ridesharing and food delivery companies often offer insurance for their drivers, you can also purchase rideshare insurance for extra protection.
If you experience an engine or transmission failure on the road, your insurance policy won’t usually cover the cost of fixing it. But as a precaution, you can purchase mechanical breakdown insurance, which is similar to an extended warranty from a car manufacturer.
Before purchasing car insurance, it’s important to do your research and get a good idea of what types of coverage you might need beyond what’s required by the state. And before you sign on the dotted line, be sure to read the fine print of the policy so that you fully understand what is and is not covered.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.