There are a lot of minor things that can go wrong with your vehicle. Unfortunately, if what is wrong with your vehicle involves your transmission, it is usually a major repair. These repairs can range anywhere from a couple hundred dollars to repair a transmission leak, to several thousands of dollars to rebuild your transmission. If you have to totally replace your transmission, you may be looking at paying anywhere from $4,000 to $8,000. While these costs are not covered under your automobile insurance you are required to have, there are several other types of coverage you can put into place in case something goes wrong.
If your vehicle is less than a couple of years old and has low mileage, your transmission repairs may be able to be covered under your manufacturer warranty. A manufacturer's warranty is limited by the age of your vehicle, as well as the number of miles on your odometer. When you purchase a new vehicle, it comes with several different types of warranties. These include the following:
Basic Warranty - This is often called your bumper to bumper warranty and will pretty much cover any type of automotive breakdown that your vehicle may need during the first few years that you own your vehicle. This is normally the shortest warranty that your vehicle will have, but it usually will last at least three years or 36,000 miles.
Powertrain Warranty - In addition to a basic warranty, your vehicle will also come with a Powertrain warranty. This warranty often varies based on the make and model of the vehicle but is normally one of the longest lasting warranties your vehicle comes with. Some manufacturers are now offering a powertrain warranty that will last up to ten years or 100,000 miles. Your Powertrain warranty covers most of the internally lubricated components of your engine, transmission, and drive systems. Read your warranty information to find out what is included, as well as what parts may be excluded.
If your vehicle is not new or no longer covered by a manufacturer's warranty, you may have invested in an extended warranty at the time of purchase. This may also be referred to as a maintenance agreement, service contract, or service agreement. This may be offered to you by the manufacturer, the dealership, other retailers, or a warranty company.
Extended warranties are most often priced based on the age and value of your vehicle. When purchased directly from the dealership, they are most commonly financed into the price of your vehicle. If you do not purchase it at that time, you can usually purchase one later and you may even find it at a better price than the dealership was offering you.
The coverage offered under an extended warranty may not exactly mimic the original warranty coverage your vehicle had. Some warranties offer more coverage, while others offer less. But most will normally cover most major repairs such as the cost of your transmission. To ensure you are purchasing the best coverage, make sure you read the fine print of exclusions prior to making the purchase.
Mechanical Breakdown Insurance
A relatively new product that is on the market is mechanical breakdown insurance (MBI). This is an insurance product that is offered by many auto insurance companies. Because it is insurance, there is often an upfront deductible that you may have to pay prior to them covering the balance of the covered costs. Unlike extended warranties that require a large upfront payment, MBI is a part of your automotive coverage and may be paid monthly, semi-annually, or even annually.
MBI coverage normally has to be put in place while your vehicle is relatively new, but it may be able to be renewed annually for several years or a certain number of miles. These terms may vary based on your insurance company. This type of insurance normally has less exclusions than the extended warranties that are on the market and allow you to use any shop that you want to have your vehicle repaired.
Although, you hope that you will never have to incur a major transmission repair, having some type of coverage in place can help pay for these costs. Unfortunately, you can't wait to put coverage in place when you need it.
For more information and options, talk with a transmission repair company and other insurance providers.