Does insurance cover your transmission?

CarShield costs $99 per month and up, though prices may 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.

Yes, car insurance covers theft if you have comprehensive coverage, which is optional. Comprehensive auto insurance can help replace your car if it’s stolen or repair damage to your car resulting from break-ins or vandalism.

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.
• If you need help paying for transportation costs related to your car being stolen, rental reimbursement coverage will pay for a rental vehicle.

Car Insurance & Theft of Personal Items

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.

Next Steps

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)
• General maintenance
• 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.

Mechanical Breakdowns

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.