What Is Auto Repair Insurance?
Auto repair insurance, also known as mechanical breakdown insurance (MBI), is a policy that helps cover unexpected repair costs when your vehicle experiences a mechanical or electrical failure not caused by an accident or wear and tear. It’s different from collision or comprehensive auto insurance, and it’s also distinct from extended warranties.
How It Differs from a Warranty
- Warranty: Usually comes from the manufacturer or dealership, covers specific components, and is time/mileage-limited.
- Insurance: Purchased as a policy (monthly/yearly), often customizable, and may include more flexible repair options.
How Auto Repair Insurance Works in the USA
Most U.S. providers operate similarly to traditional insurance companies:
- Policy Purchase: Usually through your auto insurer or a third-party provider.
- Repair Incident: When a breakdown occurs, you file a claim.
- Inspection: The provider may send an inspector or require a diagnosis from an approved shop.
- Payment: Covered repairs are paid directly by the insurer, minus your deductible.
Cheema Auto can assist in facilitating covered repairs if your plan allows shop selection flexibility.
What’s Typically Covered and Not Covered?
✅ Common Inclusions
- Engine repairs
- Transmission failures
- Cooling and electrical system repairs
- Drive axle and suspension repairs
- Air conditioning systems
❌ Common Exclusions
- Wear-and-tear items (brakes, tires, wipers)
- Cosmetic or interior damage
- Routine maintenance (oil changes, fluid flushes)
- Pre-existing conditions
Always check your policy documents carefully.
Pros of Having Auto Repair Insurance
- Cost Protection: Avoid sudden $1,000+ repair bills for major systems.
- Predictable Budgeting: Premium + deductible = easier financial planning.
- Peace of Mind: Great for high-mileage drivers and those with older vehicles.
Some policies even include towing, rental car reimbursement, and trip interruption coverage.
Drawbacks to Be Aware Of
- Monthly Premiums: You’ll pay whether you use the coverage or not.
- Limited Coverage Scope: Not all parts or labor may be covered.
- Repair Restrictions: Some insurers limit which shops you can use.
If you value flexibility, local shop partnerships like Cheema Auto offer better service quality than some third-party networks.
Auto Repair Insurance vs. Extended Warranty
| Feature | Auto Repair Insurance | Extended Warranty |
|---|---|---|
| Who Offers It? | Insurance companies | Dealerships, manufacturers, third-party |
| Duration | Month-to-month or annual | Typically fixed term (years/miles) |
| Flexibility | Usually broader network | Often limited to specific shops |
| Transferable? | Often yes | Sometimes |
| Upfront Cost | Low monthly fee | Higher one-time cost |
Choose based on your driving habits, budget, and vehicle age.
Is It Right for Your Vehicle and Driving Style?
Auto repair insurance is best suited for:
- Vehicles out of factory warranty
- Cars 2–10 years old
- Daily commuters or long-distance drivers
- People without emergency repair savings
For new vehicles, factory coverage is typically sufficient unless you’re planning to keep the car for 7–10+ years.
How Much Does It Cost vs. Average Repair Bills?
Monthly Premiums
- Range: $50–$150 per month depending on vehicle and plan
- Deductibles: $100–$250 per repair event
Typical Out-of-Pocket Repair Costs
| Repair Type | Average Cost (USD) |
|---|---|
| Transmission | $2,500–$4,000 |
| Engine repair | $3,000–$6,000 |
| AC system replacement | $1,200–$1,800 |
| Alternator | $400–$1,000 |
If your car is prone to issues or used heavily, a policy could save you thousands annually.
Why Cheema Auto Customers Ask About It
Customers at Cheema Auto Repair, especially in Connecticut and Texas, frequently ask whether it’s worth it and the answer varies by vehicle and budget.
- We advise on whether your current repair trends justify insurance.
- We accept many plans and help streamline the claim process.
- We offer in-house service packages for those looking for local-only solutions.
📞 Call us at 860-938-9036 (CT) or 832-841-1823 (TX)
🌐 Visit: https://cheemaauto.com/
FAQs About Auto Repair Insurance
Q1: Is repair insurance the same as a warranty?
A: No. Insurance is paid like a monthly policy and typically has different terms and providers.
Q2: Can I get coverage for a used car?
A: Yes, many providers offer plans for used vehicles depending on age and mileage.
Q3: Does insurance cover all repairs?
A: Only mechanical or electrical breakdowns—not wear, maintenance, or accident-related repairs.
Q4: What happens if I sell my car?
A: Some policies are transferable to the new owner, increasing the car’s value.
Q5: Will I need to pay upfront at the shop?
A: It depends. Some insurers pay the shop directly; others reimburse you after you file a claim.
Q6: Can I use my insurance at Cheema Auto?
A: Yes, if your provider allows open-network shops. We’ll assist with the claim process.
Is It Worth It in 2025?
Auto repair insurance isn’t for everyone, but for many U.S. drivers, especially those with aging or heavily used vehicles, it can be a smart financial safety net. It’s also a great way to keep driving with confidence, knowing major repairs won’t break the bank.
Before signing up, do your homework and consult trusted repair partners like Cheema Auto.
📞 Contact Cheema Auto: 860-938-9036 or 832-841-1823
🌐 Visit: https://cheemaauto.com/
