Does auto insurance cover transmission failure? Your vehicle’s transmission is one of its most important and complex components. It controls the power generated by the engine and delivers it to the wheels, enabling your car to move smoothly.
When a transmission fails, it can bring your vehicle to a sudden stop and lead to costly repairs that may exceed thousands of dollars. Naturally, one of the first questions a car owner may ask is, “Will my auto insurance cover the cost of transmission failure?”
Realistically, the answer isn’t always straightforward. Many car owners assume that their auto insurance policy will automatically cover any mechanical issue.
However, standard auto insurance policies are designed to protect against sudden, accidental damage, not wear-and-tear or maintenance-related issues.
What Causes Transmission Failure?
A failed transmission doesn’t happen overnight. It’s often a result of gradual wear, poor maintenance, fluid leaks, or internal damage that escalates over time. However, in some cases, external factors such as an accident, flood, or vandalism can lead to a sudden failure.
Common causes of transmission failure include:
- Lack of transmission fluid due to leaks
- Collision damage that affects the transmission
- Internal component wear from long-term use
- Neglected maintenance or skipped fluid changes
- Overheating from towing or driving in high temperatures
- Flooding or water damage to the vehicle
Understanding the cause of failure is very important in determining if your auto insurance will cover the cost of repairs or replacement.
Types of Auto Insurance and Transmission Coverage
Auto insurance comes in different forms, and whether or not transmission failure is covered depends on the type of coverage you have. Let’s look at some types and coverage:
Collision Insurance
Collision insurance covers damage to your vehicle resulting from a crash, regardless of who’s at fault. If your transmission was damaged directly in a collision like hitting another vehicle or an object, the repair or replacement might be covered.
However, if the transmission failed on its own before the accident or simply due to age and use, it won’t be covered under this policy.
Liability Insurance
Liability insurance is required by law in most states and covers damages you cause to other people or property in an accident. However, this type of policy does not cover repairs to your own vehicle, including transmission failure.
Comprehensive Insurance
Comprehensive coverage pays for damage to your vehicle caused by non-collision events like theft, vandalism, fire, or natural disasters. If your transmission fails due to one of these covered events (e.g., flood damage or fire), your insurance might pay for repairs.
Still, if the failure is mechanical or due to normal wear and tear, the comprehensive insurance won’t help.
When Does Auto Insurance Cover Transmission Failure?
Transmission failure is covered by auto insurance only in specific, limited scenarios. The key is whether the damage was caused by an accidental and covered event, not due to mechanical failure from neglect or age.
Here are some situations where insurance may cover transmission failure:
- If your car was in a crash and the transmission was damaged, collision coverage may apply.
- If a flood, hurricane, or fire damages the transmission, comprehensive coverage could pay for repairs.
- If someone tampered with or stole parts of your vehicle leading to transmission failure, your comprehensive policy may cover it.
Transmission failure is not covered if:
- It results from wear and tear
- It’s due to lack of maintenance
- It’s considered a mechanical breakdown
Alternative Coverage Options for Transmission Repair
Since the standard auto insurance doesn’t cover mechanical breakdowns, you may want to explore additional protection plans. These often come in the form of warranties or specialty insurance products. Here are some alternate options you can explore:
- Extended Warranty (Vehicle Service Contract): This is sold by car dealers or third parties, extended warranties cover mechanical failures, including transmission problems, after the manufacturer’s warranty expires.
- Mechanical Breakdown Insurance (MBI): This is offered by some insurers like GEICO, MBI covers repairs for mechanical components, including the transmission. However, it typically applies only to newer cars under certain mileage limits.
- Manufacturer’s Warranty: If your vehicle is still under the factory warranty and the transmission fails due to a defect, the cost will usually be covered.
Frequently Asked Questions
Does Auto Insurance Cover A Blown Transmission?
This is only if the transmission was damaged due to a covered event like an accident, flood, or fire. If it failed due to wear and tear, it is not covered.
Is Transmission Failure Considered Accidental Damage?
Unfortunately, it isn’t. Unless it’s caused by an accident or external event, transmission failure is seen as mechanical wear, not accidental damage.
Can I Get Insurance That Specifically Covers Transmission Failure?
Yes, through extended warranties or mechanical breakdown insurance. These are separate from standard auto insurance and are designed for mechanical issues.