**What Is The Average Auto Repair Insurance Cost & Is It Worth It?**

Auto Repair Insurance Cost can be a significant factor when considering a career in auto mechanics or opening your own auto repair shop, but understanding its value is crucial. AUTO-REPAIR-TRAINING.EDU.VN offers extensive resources for both aspiring mechanics and entrepreneurs, providing a clear path toward a successful career in the automotive industry. Explore our comprehensive programs and guides that cover everything from ASE certification to crafting a solid business plan and step-by-step instructions for your auto repair shop startup.

1. What Is Auto Repair Insurance?

Auto repair insurance, also known as mechanical breakdown insurance (MBI), is an optional addition to your car insurance policy designed to cover repair costs when your vehicle experiences mechanical failures. This insurance acts as a financial safety net, ensuring you’re protected from significant expenses related to engine or transmission repairs.

MBI is typically available for newer vehicles, often those less than 15 months old with fewer than 15,000 miles. If you’ve recently purchased a new car and don’t have an extended warranty, auto repair insurance might be a worthwhile option.

If you already have an extended car warranty, MBI might be redundant since both offer similar protections. However, key differences exist in eligibility, coverage limits, and cost. MBI is generally less expensive but is limited to newer vehicles and may offer slightly less comprehensive coverage.

1.1. How Does Car Repair Insurance Work?

Car repair insurance functions like any other insurance coverage, providing financial protection when you need it. It typically includes a deductible, which is the amount you pay out-of-pocket before the insurance covers the remaining costs.

You can add car repair insurance to your existing car insurance policy if your insurer offers it, or you can purchase it as a standalone policy from companies like Progressive.

Here’s a step-by-step example of how car repair insurance works:

1. You purchase car repair insurance and choose a deductible, for instance, $250.
2. A year later, your car’s transmission fails, and the mechanic estimates the replacement cost at $8,000.
3. You file a claim with your car repair insurance, pay the $250 deductible, and your insurance covers the remaining $7,750.

Considering the average cost of around $100 per year, car repair insurance can potentially save you a substantial amount of money. It helps you avoid debt when faced with unexpected and expensive car repairs.

1.2. Car Repair Insurance vs. Extended Warranty

Car repair insurance is similar to an extended warranty but differs in eligibility, coverage limits, and cost.

	Car Repair Insurance	Extended Warranty
Vehicle Eligibility	Typically for vehicles less than 15 months old and with fewer than 15,000 miles.	Available for older vehicles with higher mileage, sometimes up to 300,000 miles.
Coverage Limits	Policy limits are often longer than standard warranties; for example, Geico offers coverage for 7 years/100,000 miles.	Limits from car manufacturers are typically around 6 years/75,000 miles.
Cost	A seven-year plan costs roughly $100 per year, totaling $700 overall.	The median cost for a three-year plan is $2,458, based on research by AUTO-REPAIR-TRAINING.EDU.VN.

Another key difference is where you purchase them. Auto insurance companies generally offer car repair insurance, while car dealers typically sell extended car warranties, often at the time of purchase or when the original warranty is about to expire. However, car owners can usually purchase an extended warranty from a dealer at any time.

2. What Does Auto Repair Insurance Cover?

Auto repair insurance provides coverage for significant mechanical breakdowns affecting critical vehicle systems. This includes protection for major mechanical issues or malfunctions in the following areas:

• Air conditioning and heating
• Drive axle
• Emissions
• Engine
• Exhaust
• Steering
• Suspension
• Transmission

It is important to note that this coverage applies only when the issue is not a result of an accident or collision. Damage from accidents is covered under collision insurance.

2.1. What Car Repair Insurance Does Not Cover?

Car repair insurance does not cover routine maintenance or regular upkeep. It will not cover services considered part of standard vehicle maintenance, such as oil changes or tire replacements.

Specifically, car repair insurance typically excludes:

• Adding fluids
• Replacing brake pads
• Replacing filters
• Replacing or rotating tires
• Replacing spark plugs

Additionally, car repair insurance often does not include roadside assistance or towing services, which are usually covered under emergency road service (ERS) on your car insurance policy.

3. How Much Does Auto Repair Insurance Cost?

The cost of auto repair insurance policies can range from $30 to $100 per year. Budgeting for this type of insurance typically involves planning for an average annual cost of $100, or $700 for the policy’s duration.

The deductible amount is the main factor influencing policy cost. Most insurers allow you to choose a deductible, generally between $100 and $500. Selecting a higher deductible will result in lower monthly payments.

4. Is Auto Repair Insurance Worth It?

Deciding if auto repair insurance is worth the investment depends on your financial situation, the type of vehicle you own, and your personal risk tolerance. Here are key considerations to help you decide:

4.1. Assess Your Finances

Can you afford to pay for a major car repair without incurring debt? Can you comfortably afford the additional monthly cost of this insurance for peace of mind? If you can manage the insurance premiums but would struggle with the cost of a significant repair, this policy may be worthwhile.

4.2. Evaluate the Risk

It’s possible that you may never need to use auto repair insurance. Newer vehicles and reliable car brands are less likely to experience breakdowns early in their lifespan. However, if you value the security of knowing you’re covered for unexpected mechanical issues, auto repair insurance might be a sound investment.

4.3. Check Your Vehicle’s Reliability

Modern vehicles are generally more reliable than older models. However, breakdowns can still occur. Some vehicles are more prone to specific mechanical issues. Researching your vehicle’s reliability and potential problems can help you determine if this coverage is necessary.

4.3.1. Car Reliability and Repair Costs

Resources like RepairPal offer reliability ratings and repair costs for various vehicles. Here are some of the most reliable car brands, according to RepairPal:

Brand	Reliability Rating	Average Repair Cost
Honda	4 out of 5	$428
Acura	4 out of 5	$501
Kia	4 out of 5	$474
Hyundai	4 out of 5	$468
Mazda	4 out of 5	$462
Lexus	4 out of 5	$551
Toyota	4 out of 5	$441
Nissan	4 out of 5	$500

5. Auto Repair Insurance: FAQ

Here are some frequently asked questions about auto repair insurance.

5.1. What is auto repair insurance?

Auto repair insurance, commonly known as mechanical breakdown insurance (MBI), is an optional car insurance coverage that helps pay for vehicle repairs. MBI covers the cost of repairing major mechanical components, such as the engine and transmission, when the damage isn’t a result of an accident. If mechanical repairs are needed because of an accident, collision insurance will cover them.

5.2. Does auto repair insurance cover towing?

Auto repair insurance typically does not cover towing. Towing services are usually included in emergency road service (ERS) coverage, which is a separate part of your car insurance policy.

5.3. How much does a tow truck usually cost?

The average cost of a tow truck is about $109, but costs depend on factors like the time of day, distance towed, and the type of tow truck needed.

5.4. How much does auto repair insurance cost?

Auto repair insurance can cost anywhere from $30 to $100 per year. The average annual cost is typically around $100.

6. Expanding Your Knowledge and Career in Auto Repair

Understanding the intricacies of auto repair and the associated insurance costs is just the beginning. Whether you’re considering a career as an auto mechanic or planning to open your own auto repair shop, AUTO-REPAIR-TRAINING.EDU.VN is your comprehensive resource. We offer detailed guides and training programs to help you succeed in the automotive industry.

6.1. Career Opportunities in Auto Mechanics

The automotive industry offers a wide range of career paths, from entry-level technician positions to specialized roles. According to the Bureau of Labor Statistics (BLS), the median annual wage for automotive service technicians and mechanics was $46,840 in May 2021. The job outlook is projected to grow 0 percent from 2021 to 2031. While this growth is slower than average, there will still be opportunities as experienced technicians retire and need to be replaced.

6.2. Steps to Becoming a Certified Auto Mechanic

Becoming a certified auto mechanic can significantly enhance your career prospects. Certification, such as ASE (Automotive Service Excellence) certification, demonstrates your competence and expertise to employers and customers.

Here’s a step-by-step guide to becoming a certified auto mechanic:

1. Obtain Formal Education: Enroll in a vocational program or community college offering courses in automotive technology.
2. Gain Hands-On Experience: Secure an apprenticeship or entry-level position at an auto repair shop to gain practical experience.
3. Prepare for ASE Certification: Study for the ASE exams, focusing on your area of expertise.
4. Pass the ASE Exams: Successfully complete the ASE exams to become certified.
5. Maintain Certification: Keep your certification current by completing continuing education and retesting as required.

6.3. Starting Your Own Auto Repair Shop

Opening your own auto repair shop can be a rewarding venture, but it requires careful planning and execution. AUTO-REPAIR-TRAINING.EDU.VN provides resources to guide you through each step of the process.

Here’s an overview of the key steps:

1. Develop a Business Plan: Create a comprehensive business plan outlining your business goals, target market, and financial projections.
2. Secure Funding: Explore funding options, such as small business loans, grants, and personal investment.
3. Choose a Location: Select a suitable location for your shop, considering factors like visibility, accessibility, and competition.
4. Obtain Licenses and Permits: Ensure you have all the necessary licenses and permits to operate legally.
5. Purchase Equipment: Invest in essential equipment, such as diagnostic tools, lifts, and repair equipment.
6. Hire Qualified Staff: Recruit skilled and certified mechanics to provide quality service.
7. Market Your Business: Promote your shop through online marketing, local advertising, and community engagement.

6.4. Essential Business Strategies for Auto Repair Shops

To ensure the success of your auto repair shop, consider these essential business strategies:

• Customer Service Excellence: Provide exceptional customer service to build loyalty and positive reviews.
• Competitive Pricing: Offer competitive pricing while maintaining profitability.
• Quality Workmanship: Ensure high-quality repairs and services to build trust.
• Effective Marketing: Utilize online and offline marketing strategies to attract and retain customers.
• Financial Management: Manage your finances effectively to ensure long-term sustainability.

6.5. Leveraging AUTO-REPAIR-TRAINING.EDU.VN for Success

AUTO-REPAIR-TRAINING.EDU.VN is committed to providing you with the knowledge and resources you need to excel in the automotive industry. Whether you’re seeking to enhance your skills, obtain certification, or launch your own business, we offer comprehensive training programs and expert guidance.

7. Call to Action

Ready to take the next step in your automotive career? Contact AUTO-REPAIR-TRAINING.EDU.VN today to learn more about our training programs and resources. Whether you’re looking to start a career as an auto mechanic or want to open your own auto repair shop, we’re here to help you achieve your goals.

Contact us at:

• Address: 200 N Michigan Ave, Suite 1500, Chicago, IL 60601, United States
• WhatsApp: +1 (641) 206-8880
• Website: AUTO-REPAIR-TRAINING.EDU.VN

Let AUTO-REPAIR-TRAINING.EDU.VN be your partner in success. We look forward to helping you build a rewarding career in the automotive industry.

8. Methodology

Our rankings of the best car insurance companies are based on a comprehensive rating system designed to provide objective and accurate information. We collect data on numerous auto insurance providers, grading them on a wide range of factors. The end result is an overall rating for each provider, with the insurers that score the most points topping the list.

The factors our ratings take into account include:

• Coverage (30% of total score): Companies offering a variety of insurance coverage choices are more likely to meet consumer needs.
• Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are considered.
• Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts, and years in business when giving this score.
• Customer Experience (15% of total score): This score is based on the volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness, and helpfulness of each insurance company’s customer service team based on our shopper analysis.
• Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.

Our credentials:

• 800+ hours researched
• 130+ companies reviewed
• 8,500+ consumers surveyed