Mechanical Breakdown Exclusion in an Auto Policy
An automobile insurance policy protects you from catastrophic losses if your vehicle becomes severely damaged in an accident. Most policies, however, carefully outline an exclusion for expenses due to mechanical breakdowns.
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Comprehensive Coverage
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Comprehensive policies are like life insurance, not health insurance, for your car. Comprehensive coverage reimburses the cost, minus your deductible (if any), of repairing or replacing your car if it becomes damaged in an accident. However, standard comprehensive policies do not pay if your vehicle simply has a mechanical failure -- such as a blown head gasket or a faulty transmission -- that was not caused by an impact.
Breakdown Coverage
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Coverage for more mundane maladies requires an additional premium. Some insurers do offer breakdown coverage as a separate component of your policy. These riders (clauses) pay for specified repairs if your car has a mechanical failure, but are subject to an additional premium and numerous restrictions.
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Benefit Reduction
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Cars above a certain age or mileage may be ineligible for benefits. As a vehicle ages, the likelihood of an upcoming major repair increases. Insurers that offer breakdown coverage typically limit reimbursement in proportion to the age or the of the car. For example, the benefit could be reduced by a certain amount for every 1,000 miles above 50,000 miles on your car's odometer.
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References
- Photo Credit wrecked car image by hazel proudlove from Fotolia.com Crash on the street. German auto model 2007. image by Dariusz Kopestynski from Fotolia.com crevaison image by veronique buffi from Fotolia.com old car image by Alexander Ivanov from Fotolia.com
