Can You Use Car Insurance for Basic Repairs?

Strategies to Keep Your Car From Making You Poor

Car insurance is legally required by any car owner in almost all states. The basic auto insurance usually covers a myriad of collisions and auto accidents. While the most basic types of insurance may not cover a lot, especially when it comes to repairing damage caused by something other than an accident, there are some ways that you can use your insurance to help you pay for some of the regular repairs not directly caused by an accident.

Car repairs are known to always be on the costly side, and the better the car, the higher the bill. Since most people depend on their insurance to fix their post-accident car, many do not know what to do if their car broke down for other reasons besides an accident. 

We’ve made a brief overview that will help you know whether the insurance is used for regular repairs and how it can be used.

What does car insurance cover?

The most common car insurance policies are the basic ones that cover liability protection for when you damage other people’s property or injure them. The other most common option is a collision and comprehensive insurance policy that takes care of covering the damage resulting from vandalism, car accidents, and even unfavorable weather.

Collision insurance policy alone covers accidents with other objects except for cars such as traffic poles or even houses. The comprehensive policy covers almost any damage not caused by a direct vehicle collision like falling objects and vandalism, not to mention replacing your car if it gets stolen.

Mechanical breakdown insurance

While most types of insurance won’t cover your basic repairs, some insurance companies offer mechanical breakdown insurance policies that can cover them. It’s important to be aware that the type of car you have and its age are crucial factors that determine the price of the policy and whether your car would be valid for it or not. The mechanical breakdown insurance covers most of the regular repairs you’d need, like changing brakes, internal engine parts, or any other components vital for the usage of your car.

It’s important to mention that an MBI policy isn’t cheap and it varies from one car to another or one insurer to another. A glance at can help you see the range of insurance prices from the top providers to get some insight. Some provinces in Canada have a higher average than others, so it’s best to keep that in mind. The MBI is independent and shouldn’t be mistaken for the basic or collision and comprehensive types of insurance required by the law.

Mechanical warranties

A lot of car dealers offer something a bit similar to mechanical breakdown insurance that protects your car and handles some basic mechanical repairs. The mechanical warranty usually costs less than an MBI and varies according to the car, but it should be noted that there are more limitations when it comes to the range of repairs covered in the mechanical warranty, not to mention that it is shorter in duration.

The MBI is usually people’s first choice, as it can be paid in installments and with easier financial plans, but your car dealer could also provide you with good deals and plans, so check all available options.


The MBI policy isn’t an all-inclusive policy that covers any type of repairs you’d like to do with your car; it comes with some limitations of its own. Any insurer would require you to deal with certain auto repair shops, which are approved; any others would be refused.

You’ll be paying for deductibles just like you would with any insurance, but they’re usually not very high. It can be considered as an investment as sometimes the damage can be severe, like failing engine parts that might cost thousands of dollars to fully repair. The difference between an MBI and regular car insurance is that MBI policies age badly since your car is expected to require more repairs the more it gets older.

The insurer you buy the policy from would dictate the duration or mileage in the policy, so you should look around for the best options. Keep in mind that some repairs are not covered in any policy, like replacing coolant, tire rebalancing, and new tires.

Car insurance is a diverse field with many options to choose from. You may feel overwhelmed at first, trying to predict what you’ll need. However, it’s always better to play it safe when it comes to insurance as accidents and breakdowns are more common than you’d think, not to mention unexpected. While there is no way for insurance to cover every little repair that your car needs, some policies can be used to your advantage to save as much money as possible on repairs in the future.

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