This past week, we read about insurance should your car break down from mechanical failure. The USA Today article comprehensively reviewed auto repair insurance and the difference with car insurance. 

“Car insurance is typically useful in a scenario where your driving is the cause of an accident or if you unexpectedly run over a piece of junk on the road. But standard insurance coverage won’t help out when your car simply breaks down from a mechanical failure. On the other hand, some providers offer auto repair insurance that does cover mechanical breakdowns. Auto repair insurance is a type of insurance policy that covers mechanical breakdowns on a vehicle. … an auto repair insurance plan is backed by an insurance company. When you submit a claim, the insurance provider pays for covered repairs.”

Auto repair insurance covers items like your engine not turning on, electrical system, transmission, water pump failure, or the air conditioner not working.

These auto repair insurance providers include Geico, Progressive, Allstate, and Mercury Insurance. 

As to why are insurance companies offering maintenance insurance, it is another revenue stream. As a car owner, you can’t just go under the hood and tinker with the engine like it was done in the past. It is all electronic, and if you move one thing, you screw up something else, and so, when the check engine light goes on, it is another trip to the mechanic and another hefty bill.