Car insurance is designed to cover you against unexpected expenses related to your vehicle. But what about transmission repairs? The transmission, which transfers power from your engine to the wheels, is a crucial part of your car. When it breaks down unexpectedly, the repair bill can be pretty steep. Naturally, this leads many to wonder: does my car insurance cover transmission repairs? Let's find out.
Will insurance cover a broken transmission?
It can, depending on what type of coverage you have and how it was damaged. If it was damaged in a collision and you have collision coverage, if the damage falls under a covered comprehensive peril and you have comprehensive coverage, or if you carry mechanical breakdown insurance, your car insurance may cover the transmission.
Will car insurance cover a new gearbox?
It depends on the type of coverage you have and how the damage happened. If your gearbox was damaged in a collision, by something covered under comprehensive insurance, or if you have mechanical breakdown insurance, your car insurance might cover a new gearbox if you have those coverages.
Is transmission damage from an accident covered by car insurance?
Yes, if your transmission is damaged in a covered incident, like an at-fault car accident, your collision coverage may help cover the repair or replacement costs. Collision coverage takes care of damages to your vehicle caused by hitting another car or object. However, if the collision was not your fault, then the other driver's insurance will cover the repair or replacement costs.
Will gap insurance cover transmission repairs?
No, gap insurance doesn’t cover transmission repairs. It's meant to cover the difference between your car’s value and the remaining loan or lease if your car is totalled or stolen. For transmission issues, you'd need to look into mechanical breakdown insurance or warranties.
Can I file a transmission repair claim on my car insurance?
Yes, you can file a claim for transmission repairs, but whether it's covered depends on the cause and your policy. If the transmission was damaged in a covered event, like a collision or certain non-collision incidents, your insurance might help. If you have mechanical breakdown insurance, it could cover certain mechanical issues.
Does my car warranty cover my transmission?
A manufacturer's warranty or an extended warranty might cover transmission repairs. When you buy a new car, it typically comes with a factory warranty that includes the powertrain, which covers the engine and transmission for a certain amount of time or mileage.
When does my car insurance cover transmission repairs?
It depends on the types of coverage you have in your car insurance policy. Basic liability car insurance in Canada doesn’t cover mechanical breakdowns, but if you have additional coverage like collision, comprehensive, or mechanical breakdown insurance, you may be covered. We will examine each of them in detail:
Collision coverage
Collision coverage helps pay for repairs or replacement if you're in an accident. So, if your transmission is damaged in a covered accident or collision, your insurance’s collision coverage could take care of the repair or replacement costs—minus your deductible.
Comprehensive coverage
Comprehensive coverage kicks in for non-collision events like fire, weather damage, theft, vandalism, or falling objects. So, if your transmission is damaged or stolen in one of these situations, comprehensive coverage might help with the repair or replacement costs—again, minus your deductible.
Mechanical breakdown insurance (MBI)
Mechanical Breakdown Insurance (MBI) covers major car components, like the transmission. It works much like an extended warranty from the manufacturer, but it's offered through your insurance company. MBI typically helps cover the cost of fixing or replacing the transmission if it fails due to normal wear or a defect. Just keep in mind that there are usually limits on the vehicle’s age and mileage to qualify for this coverage.
Manufacturer’s warranty
While not part of your insurance, it's still worth mentioning. A manufacturer's warranty usually comes with a new car and covers certain parts or systems for a specific time or mileage limit. If there’s a defect in the materials or how it was built, the manufacturer will handle the repair or replacement, including the transmission. However, these warranties typically only cover specific components and don’t include damage from accidents, neglect, or normal wear and tear.
Under what circumstances does my auto insurance not cover transmission repairs?
Transmission damage can happen for a number of reasons, but not all of it will be covered by your insurance.
If you weren't at fault in an accident, the other driver's liability insurance may cover the cost of your transmission repairs, not yours. But if they don’t have insurance or are unidentified, your uninsured motorist coverage can help take care of it.
If your transmission fails because of a lack of maintenance, you'll have to handle the repair costs yourself. Likewise, if it breaks down due to a mechanical issue, your insurance won’t cover those repairs either unless you have mechanical breakdown insurance.
Finally, standard auto insurance policies don't cover transmission repairs, so if you only have a basic auto insurance policy for liability, your transmission won't be covered, no matter what happens to it.
Signs of transmission issues
Spotting the early signs of transmission trouble—like weird noises, slipping gears, or fluid leaks—can save you a lot on repairs and keep your vehicle safe and reliable. Transmission problems can affect fuel efficiency, make it hard to shift gears, and even cause your car to break down completely. Here are some key signs of transmission issues you should never ignore:
- You can hear unusual sounds coming from your transmission.
- You see a bright red, clear liquid with a slightly sweet smell under your car, indicating a transmission fluid leak.
- You notice a burning smell coming from your vehicle (overheating transmission fluid).
- Your transmission keeps slipping in and out of gear.
- There's a noticeable delay or jerk when shifting gears.
- You're experiencing rough, abrupt, or jarring gear shifts.
- You're experiencing unusual vibrations or a shuddering sensation, particularly when shifting gears.
- You’re burning through gas faster than usual.
- Your transmission warning light or check engine light is on.
How to prevent unnecessary transmission repairs
Regular maintenance is essential for keeping your car running smoothly and lasting longer. The transmission is a crucial, complex part of your vehicle, and taking care of it now can help you avoid expensive repairs later on. Here are the steps to prevent future or unnecessary transmission repairs:
Transmission fluid
It’s important that you regularly check and change your transmission fluid to keep your transmission healthy. Over time, this fluid breaks down and becomes less effective. When it gets old or dirty, it can cause increased friction and overheating—two common reasons for transmission damage.
You’ll want to make sure you follow the manufacturer’s guidelines for changing the fluid. It’s usually recommended every 80,000 to 100,000 kilometres. However, this can vary depending on your driving habits and conditions.
Automatic transmission fluid is usually thinner and contains detergents and additives for hydraulic functions, while manual transmission fluid is thicker and focuses on lubrication. Each type of transmission requires a specific fluid, and using the wrong one can cause poor lubrication, overheating, and excess wear. Always check your vehicle’s manual or consult a mechanic to make sure you’re using the right fluid.
Regular inspection and service
Keep an eye on your transmission seals and gaskets to prevent leaks. If they’re in bad shape, you could lose fluid, which leads to low levels and extra wear on the transmission.
It’s also important to service your transmission regularly. This goes beyond just changing the fluid—it should include replacing the filter (if your car has one), checking for leaks, and inspecting for any signs of wear or damage. Regular servicing can catch small issues before they turn into big, expensive problems.
Avoid overheating
Your transmission can overheat from heavy use, like stop-and-go driving, hauling, or towing. Overheating is one of the quickest ways to damage your transmission. If your vehicle is often under heavy strain, installing an auxiliary transmission cooler can help prevent overheating and protect your transmission.
Practice good driving habits
Try to avoid aggressive driving habits like rapid acceleration and hard braking. Smooth, steady acceleration and braking make your transmission much easier. If you drive a manual, make sure the clutch is fully engaged when you shift to prevent grinding and unnecessary wear.
Address issues right away
Finally, if you notice signs of transmission trouble —like fluid leaks, strange noises, or difficulty shifting gears—get it checked by a professional right away. Catching these problems early can save you from bigger, more expensive repairs down the road.
Can a damaged transmission be repaired?
Yes, as not all transmission problems require a full replacement. Some issues, like those with solenoids, sensors, or seals, can often be fixed with targeted repairs. Plus, things like transmission fluid and filter problems can usually be sorted out without needing to overhaul the entire system. However, if the damage is extensive or very expensive to fix, it might be better to replace it.
Does car insurance cover engine replacement?
Your insurance may cover engine replacement, depending on why the engine needs replacing. If it was damaged in an at-fault collision, your collision coverage could cover it. If the damage results from a covered non-collision event, it may fall under your comprehensive coverage. Further, if it needs replacing due to mechanical failure, it might fall under your mechanical breakdown insurance if you have it.
Protect your vehicle with the right coverage from BrokerLink
While normal wear and tear on your transmission isn’t covered by car insurance, damage from theft, collisions, and other risks might be. If you have any questions about how your insurance covers transmission repairs, reach out to BrokerLink.
You can talk to one of our licensed insurance brokers to get all the details on auto insurance and how it protects you as a driver. Here are a few types of car insurance coverage that a BrokerLink advisor can help you explore:
A BrokerLink insurance advisor won’t just answer your questions—they’ll take the time to understand your needs and find coverage that fits your budget. Plus, they can give you a no-obligation quote. All BrokerLink car insurance quotes are accurate, reliable, and completely free. Contact us today!
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