Car Repair Insurance: What It Covers and Why You Need It

What Is Car Repair Insurance?

Car repair insurance is coverage that helps pay for the cost of fixing your vehicle after a mechanical or electrical breakdown. Unlike traditional auto insurance—which covers accidents, theft, or weather-related damage—car repair insurance is focused on internal component failures that happen over time.

How Car Repair Insurance Works

When a covered part fails, your policy or contract kicks in to help pay for:

• Parts and labor for covered repairs

• Towing to a repair facility

• Rental car reimbursement while your vehicle is in the shop

• 24/7 roadside assistance with many plans

What’s Typically Covered?

Coverage depends on your plan, but car repair insurance (or a VSC) often includes:

• Engine and transmission

• Electrical systems and onboard computers

• Heating and air conditioning systems

• Suspension and steering components

• Drivetrain

What’s Not Covered?

Like warranties and service contracts, car repair insurance usually excludes:

• Routine maintenance (oil changes, brake pads, tires)

• Normal wear-and-tear items (wiper blades, light bulbs)

• Cosmetic damage or upholstery repairs

Why Extended Warranties and VSCs Are the Better Option

While some insurance providers market “car repair insurance,” an extended warranty or vehicle service contract often provides the same protection—sometimes more.

Here’s why they’re smarter for most drivers:

• Broader coverage options (inclusionary or exclusionary plans)

• Works for older or higher-mileage vehicles (where insurance may not apply)

• Transferable coverage adds resale value

• Extra benefits like roadside assistance, trip interruption, and rental reimbursement

Why Cuvrd?

Buying coverage through a trusted Cuvrd partner ensures you’re getting a plan that’s clear, reliable, and backed by excellent claims support. That means no surprises when it’s time to use your coverage—just protection you can count on.

Bottom Line

Car repair insurance—whether you call it a warranty, mechanical breakdown insurance, or a vehicle service contract—protects you from the financial burden of costly repairs.

If you want real peace of mind, the smarter move is to choose an extended warranty or VSC from a trusted Cuvrd partner, giving you both coverage and confidence every time you drive.