Does my car insurance cover transmission repair?

Your car insurance will not cover transmission repair for basic wear and tear. Maintaining a vehicle is the driver’s responsibility, not the insurance company’s. But, depending on your policy, auto insurance will cover transmission repair if your transmission was damaged as a result of a collision, accident, or natural disaster.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 27, 2020

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Things to know...

  • Basic auto repairs are not covered by a car insurance policy
  • A towing service is an option that you can add to your auto insurance coverage
  • Transmission repairs related to an accident may be covered by your car insurance coverage

Automotive transmissions are designed to have a long life and to endure tremendous wear and tear over the years, but they will not last forever. All transmissions will require regular service and periodic repairs to keep them well-maintained, and there will also come a time when they need to be entirely replaced.

These services can cost a small fortune, and you may be wondering if your auto insurance will pay for your automotive service expenses. While you may not want to pay for your transmission repairs or replacement expenses out of your own pocket, there are only a few instances when insurance benefits can be used for this purpose.

Even when this is possible, it may not always be the most cost-effective option for you to use. By learning more about your insurance benefits, you can make a more educated decision about how to proceed with the care and maintenance of your car. Take a minute to compare the best rates for you with our free insurance comparison tool above!

Learning About Common Transmission Issues


Your car’s transmission controls the power of your vehicle, and it can be a true issue when you run into transmission problems. There are numerous common transmission issues that your car may currently be experiencing, and these include:

  • A fluid leak
  • Low fluid levels or issues with the solenoid
  • A problem with the torque converter
  • A jammed clutch

The repair services and costs for these issues vary substantially. Some of these issues may be covered by your car insurance policy in different ways. If you are preparing to shop around for new coverage, keep these differences in mind to make a more educated buying decision.

Auto Repairs From Wear and Tear Are Not Covered

One of the most common causes of transmission issues and other automotive service needs relates to wear and tear on the vehicle. All mechanical components can wear out with regular use of your vehicle, and no auto insurance policy covers these types of expenses.

Liability auto insurance policies pay for other drivers’ expenses if you cause an accident while you are driving your car. Collision and comprehensive insurance pay for your own expenses, such as medical expenses and vehicle repairs, that you incur. However, these coverages only are available for select events, such as a car accident.

If your vehicle is still under the manufacturer’s warranty, you may reach out to your dealership to determine if your warranty will pay for transmission services related to wear and tear. This may be the most cost-effective solution available for dealing with wear-related damages to any vehicle components.

Auto Repairs From an Accident or Other Related Event May Be Covered


Some transmission damage may occur from accidents, weather-related damage, and other types of related events. Collision insurance typically only pays for damages caused by a car accident. Comprehensive insurance may pay for damages from a wide range of events, such as weather-related damage, a fire, and more.

If your vehicle’s transmission was damaged by a specific and notable event, you should review your existing coverage to determine if the event was covered by your policy. Remember that a claims adjustor or estimator will review your vehicle before the claim is approved, and the cause of the damage will be verified at that time.

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Towing Expenses May Be Paid For Through Insurance Coverage

Many transmission issues will leave drivers stranded at the side of the road, and you may have needed to use towing services to get your vehicle to an auto repair service center. Towing benefits are usually an optional feature that you can add to your policy, and because it is an affordable option, many drivers do choose to add this coverage to their policy.

With this in mind, towing service may be paid for through your policy even if the actual transmission work is not covered. You can decrease your out-of-pocket expenses if you have this optional coverage on your policy.

Setting Up a Great Auto Insurance Policy


As you can see, there are significant differences in benefits between different types of car insurance policies that you may have. For example, a liability-only coverage policy will only pay for others’ expenses, but a collision or comprehensive policy may pay for many of your own expenses.

You understandably want to set up the most beneficial and protective car insurance policy available, and now is a great time to review and update your coverage to meet your needs. By taking this step today, you may better prepare yourself for future automotive repair issues that may develop.

Choosing a few reputable car insurance providers to request quotes from is an excellent first step to take in this process. You can use the Internet to research the financial ratings of various providers, and great resources for this include Moody’s or A.M. Best. You can also learn more about each provider’s customer satisfaction rating and claims process to make an informed decision about which providers to get quotes from.

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Factors That Affect the Cost of Your Transmission Repair

Before you learn more about the possibility of using insurance benefits to pay for your transmission issue, it is beneficial to request a quote for the service that is needed. Many mechanics will provide you with a free diagnostic service and quote. You may notice that the cost of your transmission repair service will be dependent on:

  • The cost of the parts needed to complete the work
  • The type of transmission in your car
  • The cost of labor in your area
  • The estimated number of hours to complete the project

You Must Pay a Deductible When Filing a Claim

In the event that your current auto insurance policy does pay for your specific transmission repairs and other related vehicle repairs, remember that you will need to file a claim with your insurance provider.

Any time you file a claim, you are required to pay an insurance deductible.

This amount usually ranges between $250 and $1,000. Filing a claim could result in your premium increasing as well as in the need to pay the deductible upfront. All drivers should carefully examine the benefits of filing a claim in comparison to paying repair expenses out of their own pocket.

How to Save Money on Your Insurance Premium

If you need to file a claim for your current auto repair needs, you may be concerned about the potential for rising rates. The good news is that you may be able to identify numerous auto insurance discounts that you can qualify for as you shop around for the best rates. Keep your eyes open for these money-saving discounts:

  • Low mileage discount
  • Safe driving discount
  • Senior or student discount
  • Bundled policies discount
  • Automated payments or a full premium payment discount

Whether your vehicle has transmission issues or other related issues, it is important to determine if the cause is wear and tear or a single event, such as a car accident. Then, you will need to determine if the specific type of event that caused the damage is covered by your auto insurance policy.

It may be wise to update your auto coverage today so that it is more protective and inclusive. Doing so may help you to benefit more substantially from your car coverage in the future. Don’t miss out on saving on your car insurance rates. Use our free insurance comparison tool below to make sure you aren’t overpaying for your auto insurance.

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