Does car insurance cover electrical problems? Car insurance protects vehicle owners from financial losses due to accidents, theft, and damages.
However, not all types of car issues are covered by standard insurance policies. In fact, one common area of confusion is whether car insurance covers electrical problems.
Modern vehicles with the latest models all rely heavily on electrical components, from the battery and wiring system to other complex computerized modules that control various functions.
When these components fail, the repairs are always costly. Hence, it leaves many car owners wondering if their car insurance will cover electrical problems.
Car Insurance Policies And Electrical Issues
Car insurance policies all differ in coverage, and not all policies include protection for electrical problems. The extent to which an insurance policy covers electrical repairs depends on the cause of damage and the type of policy you have.
Comprehensive Insurance And Electrical Damage
Comprehensive car insurance is designed to cover non-collision-related damages, such as theft, vandalism, and natural disasters. Now, some electrical problems may be covered under comprehensive insurance if they are caused by specific external factors.
- Vandalism and Theft: If someone tampers with the car’s electrical system during a break-in, your policy may provide coverage for the necessary repairs.
- Fire Damage: If an electrical system malfunctions due to a fire, it may cover the repair or replacement costs.
- Flood Damage: If water from flooding damages a car’s electrical components, then the comprehensive insurance often includes flood-related repairs.
Mechanical Breakdown Insurance (MBI) And Electrical Components
MBI is a policy designed to cover repairs for mechanical and electrical failures, and it is similar to an extended warranty. However, MBI is not included in standard car insurance but can be purchased separately.
- Electrical System Malfunctions: If a vehicle’s electrical components, like the alternator, starter motor, or power windows, fail due to mechanical reasons, MBI may provide coverage.
- Computer and Sensor Failures: Modern vehicles rely on advanced sensors and computers, which can be costly to repair. So, this policy may help offset these expenses.
Collision Insurance And Electrical Repairs
Collision insurance covers damage to your vehicle caused by an accident, regardless of who’s at fault. If an accident leads to electrical problems, this type of insurance may help cover the repair costs.
- Airbag Deployment Issues: Some electrical problems may arise after an accident due to airbag deployment. Hence, it may be included in collision coverage.
- Accident-Related Electrical Damage: If a collision damages the car’s wiring or onboard computer, the repairs may be covered under collision insurance.
Factors That Affect Insurance Coverage For Electrical Problems
Even if a car insurance policy provides some level of coverage for electrical problems, there are still certain factors that determine whether a claim will be approved. These factors include:
- Cause of Electrical Damage: Insurance providers typically cover electrical issues only if they result from a covered event, such as an accident, natural disaster, or vandalism.
- Type of Policy and Add-Ons: Not all policies include coverage for electrical repairs. The MBI or extended warranties are better suited for covering mechanical and electrical failures. They are a better option than other policy coverage.
- Vehicle Age and Maintenance History: Older vehicles that have older electrical systems are more likely to experience failures due to wear and tear. Moreover, the insurance companies may deny claims if the damage is due to neglect or a lack of proper maintenance.
- Exclusions and Limitations: Insurance policies often have exclusions that specify what is not covered. The issues that are excluded from this coverage are electrical issues due to poor maintenance, aftermarket modifications, or normal wear and tear.
Alternatives Options For Electrical Repairs
If your car insurance does not cover electrical repairs, there are still alternative options to help manage repair costs. These options include:
- Vehicle Service Contracts: Some third-party providers offer vehicle service contracts that act like extended warranties. What’s more, it covers specific electrical and mechanical repairs.
- Extended Warranties: Extended warranties can be purchased to provide additional coverage for electrical and mechanical repairs beyond the manufacturer’s warranty period.
- Routine Maintenance and Inspections: Regular maintenance and professional inspections can help identify and fix minor electrical issues before they become major problems.
- Manufacturer Warranty: New cars typically come with a manufacturer’s warranty that covers electrical components for a specified period. If an electrical problem arises within the warranty period, repairs may be covered at no cost.
Frequently Asked Questions
Can I File A Claim If My Car’s Battery Dies?
No, the insurance does not cover battery replacements, as it is considered regular maintenance. However, roadside assistance plans may provide jump-start services.
Are Electrical Issues Caused By Rodents Covered By Insurance?
Some comprehensive insurance policies cover rodent damage, including chewed electrical wiring. Check with your insurer to confirm if this is included in your policy.
What Should I Do If My Insurance Claim For Electrical Damage Is Denied?
If your claim is denied, review your policy’s terms to understand why. You can appeal the decision, seek coverage through an extended warranty, or pay for repairs out of pocket.
