If you own a vehicle, having the right auto insurance policy in place is essential if you're ever in a car accident, as it can help prevent you from having to pay out of pocket for repair costs. But what about routine maintenance throughout the years that help maintain your car's reliability? Is there a type of coverage in Canada to help with these types of tasks? To learn more about your options for car maintenance coverage, keep reading.
Does car insurance cover maintenance?
Typically, scheduled car maintenance is the responsibility of the vehicle owner and is not covered by insurance. As such, to prevent costly repairs and mechanical breakdowns, routine upkeep throughout the year is always necessary to ensure your safety and the safety of others on the road.
What exactly does car insurance cover?
Now you're probably thinking, if my insurance coverage doesn't cover maintenance, what exactly does it cover? In Canada, certain car insurance is mandatory for all motorists. However, the minimum coverage limits for each policy will vary depending on which province or territory you reside in. Here's a closer look at mandatory and optional types of auto insurance available to you:
Third-party liability insurance
Third-party liability insurance is a type of mandatory insurance for all Canadian motorists. The purpose of this insurance policy is to protect the finances and interests of the policyholder in the event they cause bodily injuries or property damage to a third party when operating a motor vehicle. Should a third party file a lawsuit against the policyholder, this portion of their insurance will kick in and cover the cost of medical bills, legal fees, and other expenses that may arise as a result of the suit.
Uninsured motorist coverage
Uninsured motorist coverage is another legally mandated insurance policy for motorists in Canada. This insurance will cover the cost of vehicle repairs if you are involved in an accident with an at-fault driver who is underinsured or uninsured. This coverage will also protect you if you get into an accident where the other driver flees the scene before you are able to exchange information.
Accident benefits insurance
Accident benefits coverage is the last mandatory policy required by all drivers. If you get into an accident where you, any of your passengers, or pedestrians involved are injured, accident benefits will cover the cost of medical bills, rehabilitation, lost wages, and other expenses, regardless of who is found at fault for the collision.
Comprehensive coverage
All motorists have the option of whether or not they want to add comprehensive car coverage to their insurance portfolio. This insurance will cover the cost of repair work required for your vehicle if it is damaged in a non-collision event. For example, damage caused by car theft, vandalism, fire, and certain natural disasters is often included in this optional coverage. Should you need to file a claim for needed repairs, you will need to pay a deductible amount to your insurance company before your policy will kick in and cover the rest.
Collision car coverage
Collision car coverage is also optional and works similarly to comprehensive coverage. However, rather than covering the repair costs for non-collision events, your collision insurance will kick into place following the car accidents you're at fault for. Again, you will need to pay a deductible to your insurance provider at the time you file your claim for this coverage to work.
Accident forgiveness insurance
Normally, after an at-fault accident, your insurance premiums will increase. However, with accident forgiveness coverage, you can avoid a rate increase following your first at-fault collision. This insurance is only valid for one accident. If you're a new driver or have a clean driving record, adding this to your portfolio is a great idea so you can save on car insurance if the unexpected happens.
In the meantime, to help prevent car accidents in the future and remain safe on the road, brush up on BrokerLink's guide for safe driving tips!
Roadside assistance
Roadside assistance is another optional insurance policy that will act as your saving grace if you're ever stranded on the side of the road due to a mechanical issue. This policy tends to include towing services, 24/7 contact with a roadside assistance company, help with flat tires, lost keys, and other problems. Ultimately, roadside assistance is meant to give motorists peace of mind, knowing that there's someone to help them when the unexpected occurs.
Gap insurance
Gap insurance pays for the difference between a vehicle's actual cash value and the balance remaining on your car loan or lease in the unfortunate event the vehicle is a total loss following an accident.
Rental car policy
If your car is damaged in an accident and you need a replacement vehicle during the time your car is in the shop, a rental car policy is something to consider. Having your vehicle in the repair shop can make it difficult for you to get to work, do your groceries, and get to where you need to go in general, which is why rental car insurance was created.
What does mechanical breakdown insurance cover?
While there is no type of insurance coverage for car owners that pays for vehicle upkeep, there is a type of additional coverage called mechanical breakdown insurance, also known as car repair insurance, that you may want to consider for yourself. So, what exactly is mechanical breakdown insurance?
Essentially, this coverage will cover the cost of a mechanical breakdown and car repair services your vehicle needs once the original warranty on the car has expired. Depending on your insurance provider and coverage level, what's covered by this policy can vary, like the specific parts covered, what type of mechanical issues, and whether any additional services are included.
Before purchasing this type of car repair insurance, make sure to compare coverage options from different insurers and read the fine print in your policy so you know exactly what is and isn't covered.
Protect your vehicle and your peace of mind with comprehensive car maintenance insurance. Choose BrokerLink for your auto insurance needs and benefit from tailored coverage, competitive rates, and exceptional customer service. Let us help keep you on the road with confidence. Contact us today to learn more!
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What is not covered by mechanical breakdown insurance?
While mechanical breakdown insurance covers various repairs to your vehicle, there are certain things that will not be covered by repair insurance, including the following:
Routine maintenance
As we mentioned above, the maintenance that your vehicle requires is not covered by car repair insurance. When you purchase a car, you take on the responsibility of maintaining it throughout its service life. As such, all maintenance issues that your vehicle requires, such as oil changes, new wipers, tire rotations, top-up on fluids, and more, will need to be paid for out of your own pocket.
Vehicle damage resulting from accidents
Another exclusion that car repair insurance will not cover is vehicle damage that results from a car accident or other circumstances. Car owners will need to purchase comprehensive insurance or collision coverage, both of which are optional policies, in order to have coverage for any repairs that are required. If you do not purchase these coverages, you will be responsible for paying for any repairs your car needs following collision or non-collision damages.
Certain types of car parts
Depending on where you get your car repair insurance, certain parts for your vehicle may not be covered by your policy if they have a short service life. For example, because you will need to change your air filters, cabin filters, and oil filters frequently, your insurance provider will not cover these parts. Make sure to ask your insurance company what types of parts are covered before signing your contract.
Aftermarket car modifications
A lot of car enthusiasts in Canada pay to have their vehicles modified with aftermarket parts. That said, modifications to all vehicles are seen as a higher risk to insure by insurance companies. Therefore, if you do decide to modify your vehicle, your insurance company may not provide coverage for them if they become damaged. It's also important to mention that you will need to inform your provider about the modifications at the time you purchase your insurance. Otherwise, your insurer could cancel your policy altogether.
Is my vehicle eligible for car repair insurance?
If car repair insurance is something you're interested in purchasing for your overall insurance portfolio, it's important to mention that depending on the insurance company you partner with, only certain types of vehicles are eligible for mechanical breakdown coverage. While the criteria may also be different, here are some of the factors an insurance provider may look at when determining whether this additional coverage applies to you:
Vehicle age
Many providers tend to have cut-offs in terms of what age your vehicle needs to be in order to find coverage. As such, if you have older vehicles, you may have some difficulty finding car repair insurance or you may be required to use a single insurer that specializes in older vehicles.
Make and model of your vehicle
The make and model of the vehicle you own can also play a role in whether an insurance company will take into consideration when determining whether you are eligible for insurance. Some vehicle models have more expensive replacement parts and certain features that could make them high risk. Therefore, you may need a specialized type of coverage rather than repair insurance.
How much mileage your car has
Oftentimes, car repair insurance has a mileage cutoff for vehicles. As you can probably guess, vehicles over a certain mileage may be denied eligibility for car repair insurance.
The current condition of your vehicle
Another important factor car repair insurance companies will consider is the current condition of your vehicle. Vehicles with a long and persistent history of mechanical and electrical problems may have a harder time finding coverage compared to vehicles that are newer and in good working condition.
Vehicle modifications
Vehicles that undergo extensive aftermarket modifications, particularly those that significantly affect the vehicle's performance or engine parts, may not qualify for car repair insurance, given that the modifications are not a part of the car's original design.
Consider an extended car warranty
When you purchase a new vehicle, a manufacturer's warranty is automatically included. This car warranty essentially is a guarantee that is provided when you purchase a new vehicle from a dealership. However, in certain scenarios, you may also receive a car warranty when purchasing a certified pre-owned vehicle.
Essentially, a car warranty assures buyers that if the vehicle has any defects or issues that result from a factory process, the manufacturer covers repair costs and any replacements that are needed.
Generally speaking, a manufacturer's warranty will last anywhere between two to five years. Once your vehicle has reached a specified mileage, the warranty will end. However, if you wish to continue having some type of coverage for repair work, you can purchase a separate extended warranty for your vehicle.
What do extended car warranties cover?
Beyond the car warranty that's included in your vehicle purchase to cover defects that may occur during the manufacturing process, many vehicle owners often purchase an extended warranty once their original warranty has ended.
What's typically covered by these warranties will vary based on the type you purchase from a third-party provider. However, the most common coverages we've listed below for you:
Comprehensive warranty
Under comprehensive warranty protection, the manufacturer will pay for any part of the car that develops a production problem. As an example, if your car has a recall for a broken seatbelt or a software malfunction that leads to safety issues, you can bring it to the dealership and get it repaired for free.
Corrosion warranty
A corrosion warranty will fix your car if rust develops within the car and spreads to one of its panels. This guarantee is especially beneficial for people who reside in places where there are long periods of winter and rain.
Emissions warranty
An emissions guarantee covers any components of your automobile that are directly responsible for your car emitting pollutants into the surrounding environment.
Warranty for hybrid and electric models
If you operate a hybrid or electric car, you can also get repair coverage. However, instead of the engine, your vehicle will be covered for its battery and any additional electrical parts.
Powertrain warranty
The powertrain warranty covers the cost of repairing any affected or dangerous belts or hoses throughout your vehicle. It also includes the engine, powertrain, and other specific components that correspond with the powertrain.
Tire warranty
This particular kind of warranty will protect you if your car's wheels are deformed in any way. However, if you have a burst tire, this sort of repair will not be covered because it has nothing to do with the material, the tire, or a defect with the tire itself.
How can I prevent expensive car repairs?
To prevent a mechanical breakdown that leads to expensive repair costs, conducting maintenance on your vehicle throughout the year and before you go on a long-distance adventure is essential for all car owners. Take a look at our guides that outline how you can slow down the wear and tear on your vehicle and keep your car as safe as possible:
Contact BrokerLink today
Whether you're in the market for preventative auto insurance, have questions about your current coverage, or have other types of insurance needs, the experienced and friendly brokers from BrokerLink are here to help.
BrokerLink has years of professional experience partnering with drivers across Canada. With offices across the country, BrokerLink may be in your neighbourhood! If we're close by, don't hesitate to come into one of our offices and work with a broker face-to-face.
If, by chance, you aren't nearby, you can always contact us over the phone during business hours! Alternatively, if you're browsing for insurance, get a competitive insurance quote in minutes using our free online quote tool!
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FAQs about car maintenance insurance
Does insurance cover transmission failure?
If your vehicle's transmission fails due to normal wear and tear, your insurance policy will not cover the repair, given that all vehicle maintenance is the responsibility of the owner. Now, if you are in an accident and your car's transmission is damaged, you can file a claim with your insurance company and receive compensation for this type of repair under your collision insurance once you've paid the deductible amount out of your own pocket. Another scenario where you could be covered for a transmission failure is if you are still under your manufacturer's warranty or you have an extended warranty in place.
How do I know if my car is still under warranty?
If you are unsure whether your current vehicle still has protection under its warranty and you purchased the vehicle new or certified used from a dealership, you can go ahead and give them a call. They should have your information on file and be able to confirm whether or not your warranty is still valid. Alternatively, you may be able to find this information on the bill of sale that you received at the time of your purchase, should you still have this document handy.
Does car repair insurance cover damages that aren't caused by accidents?
Yes, car repair insurance is a type of specialized protection offered to car owners if their car experiences a mechanical breakdown that is not caused by a collision. This insurance can be purchased as a form of protection after the original car warranty has expired and is meant to help policyholders pay for repair services needed. On the other hand, if a repair is needed for cars that are due to a collision or other event, they would typically receive coverage under their comprehensive or collision insurance if they were purchased as an add-on.
How much does car maintenance cost?
Your car maintenance cost over the year will partly be determined by the type of vehicle you own and your usage habits. From oil changes to tire rotations and new wiper blades, these costs can add up over time. So, if you're a new owner, how much can you expect to pay when it comes to your vehicle? On average, motorists in Canada can spend anywhere from $50 to $1500 on their car's upkeep.
Do electric cars require less maintenance than gas vehicles?
If you're thinking about purchasing an electric vehicle, you may have some questions regarding maintenance, including " Do electric cars require less maintenance than gas vehicles?" While it can depend on the type of electric car you own, in general, electric cars typically require less upkeep than traditional vehicles, given that they do not have an engine that needs routine oil changes, have fewer fluids that need top-ups, and other components. Keep in mind, however, that an electric vehicle will still need tire rotations, battery upkeep, and other services that a standard car would need as well. So, make sure to consider this in your decision.
Can my car warranty be voided?
Yes, there are several instances in which your extended warranty may be cancelled. For example, failure to comply with your routine maintenance needs, claiming your vehicle a complete loss after a car accident, manipulating the reading of the odometer to alter the mileage, and other factors can all result in the voiding of your warranty. When you sign an extended warranty contract, make sure you carefully read the terms and conditions of the agreement, so you know what you need to do to keep the benefits you have.
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