Our team reviewed FSRA’s guidance on mechanical breakdown exclusions, standard Ontario coverage summary, claims guidance, and the federal vehicle recall database to prepare this article.
Does Auto Insurance Cover Transmission Failure?
Most automobile insurance policies exclude mechanical failures. Standard auto insurance does not cover faulty transmissions caused by age or wear, or by missed maintenance.
That said, some coverage options may pay to replace or repair your vehicle’s transmission. Whether or not you’re covered depends on what caused the issue. Here’s how to determine whether a busted transmission is covered by car insurance:
Causes of Transmission Problems
Transmission issues may include difficulty engaging gears, gear slippage, warning lights, leaks, unusual noises, a “limp” mode, or an inability to move. Some common reasons transmissions fail include:
- Collisions: Sufficiently strong collision forces may cause serious damage to transmissions.
- Neglected maintenance: If the vehicle wasn’t regularly maintained according to the manufacturer’s recommendations, or if old or dirty fluid caused the transmission to overheat, repairs aren’t typically covered by auto insurance.
Read More: See How Collision Car Insurance Works in Ontario
Is a Busted Transmission From a Car Accident Covered by Insurance?
If your transmission was damaged in an accident, your collision coverage may pay for repairs. Collision coverage is optional and pays to repair your vehicle if it’s damaged in an accident or rollover. In Ontario, your own insurer generally handles an eligible claim under the applicable coverage.
If the accident is eligible and meets certain requirements, Direct Compensation – Property Damage (DCPD) might cover your accident-related damage even if the accident wasn’t your fault.
Can Comprehensive Car Insurance Pay for a Broken Transmission?
Comprehensive coverage may apply only when a covered non-collision peril, such as fire or flood, damages the transmission. Comprehensive coverage covers losses that aren’t the result of an accident. Deductibles and exclusions still apply.
Some situations where comprehensive coverage may pay for transmission repairs include:
- Flooding
- Fire
If you have All Perils coverage, your policy follows standard OAP 1 wording and combines collision and comprehensive benefits. Keep in mind All Perils coverage does not necessarily cover everything.
Read More: See How Comprehensive Car Insurance Works in Ontario
Is a Transmission Repaired If an Uninsured Driver Damaged It?
If another known driver caused the accident and they’re uninsured, Uninsured Automobile Coverage, which is mandatory, could cover transmission repair costs of up to $25,000 minus a $300 deductible. If the at-fault driver is unidentified, Uninsured Automobile Coverage does not cover vehicle damage; optional Collision or All Perils coverage may apply.
Steps to Take If You Think You Have a Transmission Issue
If you suspect transmission problems, safely pull over and shut off your vehicle as soon as possible. Check the fluid level if safe to do so. Document warning lights, leaks, etc. Call a qualified technician if you’re unsure of what’s happening. Keep receipts for towing, inspection or diagnostic costs, parts, and labour.
Report a sudden covered event as soon as possible. If you think your policy covers the issue, report it to your insurer before repairs are made. An adjuster will investigate what happened and determine what caused the damage and whether your policy covers it.
Do not repair or remove components until you receive approval from your insurer. Keep all damaged parts until you receive further instructions. You may not receive the full cost to repair or replace the vehicle depending on your deductible, the cost of repair, or the cash value of the vehicle.
Maintenance Tips to Extend Transmission Life
Follow these steps to minimize the chance of mechanical failures:
- Change the fluid according to the manufacturer’s recommendations, using the “severe service” guidelines where applicable. Use only the fluid type recommended by the manufacturer.
- Check the fluid as recommended by the manufacturer. Never open or attempt to refill transmissions designed to be sealed.
- Don’t exceed your vehicle’s towing capacity. Find your vehicle’s maximum towing capacity in the owner’s manual.
- Avoid harsh acceleration and sudden stops.
Read More: Learn About Car Insurance in Ontario