Will My Auto Insurance Cover Transmission Failure?

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Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on January 3, 2025

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated January 3, 2025

Visit author page

3 minute read

Article Contents

When it comes to issues with a car’s transmission, many drivers often ask “Does auto insurance cover transmission failure?” Understanding what your auto insurance covers can save you from unexpected expenses and help you make informed decisions about your vehicle’s maintenance and repairs.

Does insurance cover transmission repair? When does insurance not cover transmission damage? In this article, we’ll explore the specifics of auto insurance coverage related to transmission damage and when you can expect your insurance company to cover repairs.

Auto Insurance for Transmission Failure at a Glance

  • Transmission damage can be covered by insurance in certain circumstances.
  • Not all insurance coverage types will cover transmission damage.
  • Extended warranties can cover mechanical failures like transmission breakdowns for new vehicles.
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Understanding Auto Insurance Coverage & Implications to Your Transmission 

Before diving into the specifics of transmission coverage, you must become familiar with the basics of auto insurance in Ontario.

Every driver is required to have an auto insurance policy before being allowed to drive in Canada legally. It’s important to know what type of coverage your policy offers to know what situations you can expect insurance to help cover your repair costs.

This is the minimum required coverage in Canada. It pays for damages to other vehicles or property if you’re at fault in an accident.

This covers damage to your vehicle resulting from a collision, regardless of fault.

This protects against non-collision-related incidents, such as theft, vandalism, or natural disasters.

All Perils Coverage protects your vehicle from collisions and other events that don’t involve collisions.

This comes into play if you’re in an accident with a driver who doesn’t have insurance.

Knowing the difference between these types of coverage is important, as they dictate how your insurance will respond in the event of transmission damage. Be sure to read your insurance policy thoroughly to know how much coverage you have in the event of a transmission failure.

What is Transmission Damage and What Causes it?

Transmission damage refers to any issues affecting the vehicle’s transmission system, which is responsible for transferring power from the engine to the wheels. When your transmission sustains heavy damage, your car may be able to start, but won’t be able to move since your transmission system isn’t spinning your wheels. Common causes of transmission damage include:

Accidents:

Collisions can lead to significant damage to the transmission. Depending on the severity of the accident, your entire transmission system can be damaged by a collision.

Lack of Maintenance:

Failing to perform regular maintenance can lead to wear and tear.

Fluid Issues:

Low or contaminated transmission fluid can cause overheating and damage. 

Intense Driving Conditions:

Towing heavy loads or driving in stop-and-go traffic can stress the transmission, resulting in damage.

5 Maintenance Tips to Extend Transmission Life

When Does Auto Insurance Cover Transmission Damage?

Generally, insurance companies will cover repairs to your transmission if you can prove that it was caused by an accident or other event that you’re insured against. Collision coverage will cover the repair costs of your transmission if it was damaged in an accident, while comprehensive coverage will cover damage due to non-collision events, such as natural disasters, theft, vandalism, or falling objects. Uninsured motorist coverage can also cover the repair costs of a damaged transmission if it gets damaged in a collision with an uninsured driver.

When Does Auto Insurance Not Cover Transmission Damage?

Transmission damage can occur due to a variety of factors, and not all transmission damage will be covered by your insurance policy. If your transmission stops working due to normal wear and tear or lack of maintenance, you’ll have to pay for repairs out of pocket. Similarly, if your transmission stops working due to a mechanical failure, insurance won’t cover the repairs.

Additional Coverage Options for Transmission Repairs

If you’re concerned about potential transmission issues, consider these additional coverage options:

Mechanical breakdown insurance is a type of coverage that can protect you against mechanical failures, including transmission issues. This coverage is often available through your insurance provider and can be a wise investment for those who want extra protection.

Many dealerships offer extended warranties that can cover transmission repairs. These warranties can provide peace of mind, especially for newer vehicles.

Maintenance Tips to Extend Transmission Life

Maintaining your transmission is important to keep your car operating smoothly. Here are five practical tips to help extend the life of your transmission:

Regular Fluid Changes:

Transmission fluid lubricates and cools the transmission components. Check your owner’s manual for the recommended fluid change intervals, typically every 30,000 to 60,000 kilometres. Fresh fluid helps prevent overheating and reduces wear.

Schedule Regular Maintenance Checks:

Have your vehicle inspected by a professional mechanic regularly. They can identify potential issues early and recommend necessary repairs or adjustments, ensuring your transmission remains in good working condition.

Monitor Fluid Levels and Condition:

Regularly check your transmission fluid levels and look for signs of contamination, such as a burnt smell or dark colour. Low or dirty fluid can lead to transmission issues, so top it off or change it as necessary.

Avoid Overloading Your Vehicle:

Exceeding your vehicle’s towing capacity or carrying excessive weight can put undue stress on the transmission. Always adhere to the manufacturer’s guidelines regarding load limits to prevent premature wear.

Practice Smooth Driving Habits:

Avoid aggressive driving behaviours, such as rapid acceleration and hard braking, as these can strain the transmission. Smooth, gradual changes in speed help maintain optimal performance and reduce stress on the transmission.

Key Advice from MyChoice

  • Some insurance providers can offer mechanical breakdown insurance, which can cover your repair costs when your transmission fails due to a mechanical issue.
  • Damage to your transmission can be covered by your regular insurance policy if its caused by a collision or event that you’re insured against.
  • Keep your car maintained regularly and avoid driving in ways that stress your transmission to avoid the chance of a transmission breakdown.

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