Insurance and Transmission Damage

Will insurance cover transmission repairs or replacement?

When it comes to car insurance and transmission failure or damage, people often have many questions, especially about whether their insurance will cover certain repairs. For good reasons - transmission repairs can be very expensive. It's good to know whether you can rely on your insurance coverage or if you’ll have to cover the costs. Below we’ll talk about if insurance covers transmission issues.

Three main takeaways about transmission coverage

• Not all types of coverage will include transmission damage, but it may be included under certain circumstances and policy types.
• Extended warranties can cover some vehicles' mechanical failures, such as transmission breakdowns.
• Transmission failure can result from poor maintenance, harsh driving habits, overheating, and water contamination. Proper care can help prevent these issues.

What does the transmission do?

The vehicle's transmission is a crucial component that facilitates the transfer of power from the engine to the wheels. It regulates the amount of power delivered by the engine to the wheels, enabling the car to accelerate, decelerate, and change speeds smoothly and efficiently. There are two primary types of transmissions:

Manual transmission

When driving a vehicle with a manual transmission, the driver manually changes gears using a clutch pedal and a gear stick. This allows for greater control over the vehicle's performance, particularly when encountering diverse driving conditions such as steep inclines, slippery roads, or when towing heavy loads.

Automatic transmission

The car is equipped with an automatic transmission system that uses sensors to detect the vehicle's speed and acceleration and automatically shifts gears, allowing for a seamless driving experience without the need for manual gear changes. This feature simplifies the driving process and provides a smoother and more convenient ride.

What causes transmission damage?

Transmission damage can be costly and frustrating for car owners. Understanding the causes of damage is crucial for preventing problems and prolonging the life of your vehicle. Here are some reasons for transmission issues:

• Lack of regular maintenance schedule: Failing to change transmission fluid at recommended intervals.
• Low or leaking transmission fluid: Causes overheating and increased friction.
• Overheating: Results from aggressive driving, towing, or driving in hot conditions without adequate cooling.
• Harsh driving habits: Aggressive acceleration, frequent gear shifting, or riding the brakes.
• Towing or overloading: Places excess strain on the transmission.
• Slipping gears: Worn or broken bands/clutches cause improper gear engagement.
• Clogged filters: Restricts fluid flow, causing insufficient lubrication and cooling.
• Faulty solenoids: Prevents proper fluid flow, causing shifting problems or failure.
• Worn or damaged clutches: Leads to slipping, overheating, and transmission damage.
• Improper shifting: Grinding or skipping gears, driving in the wrong gear.
• Water contamination: Causes corrosion and part failure.
• Software or computer issues: Problems with the Transmission Control Module (TCM) affect shifting.
• Manufacturing defects: Faulty design or poor manufacturing may cause premature failure.

Does insurance cover transmission damage or failure?

Standard auto insurance typically does not provide protection for transmission damage or failure resulting from regular wear and tear, mechanical breakdowns, or insufficient maintenance.

However, if the transmission damage is caused by an accident or a covered event, such as a collision, vandalism, or flooding, your policy may cover it.

In the case of mechanical failures or wear-related issues, coverage generally comes from extended warranties or specialized policies, which can assist in covering the costs of repairs or replacement of the transmission and other mechanical components.

If the transmission failure is a direct result of an accident, your comprehensive or collision insurance may cover the repair, depending on the terms of your policy.

Are there additional coverage options for vehicle transmission?

Dealers and third-party providers offer extended warranties that cover transmissions and other mechanical components after the manufacturer's warranty expires. These warranties generally include repair or replacement for transmission issues due to mechanical failure. A powertrain warranty focuses on the engine, transmission, and drivetrain. It is often included in new car purchases but is extendable for used vehicles. These options protect against costly transmission repairs not covered by regular policies.

6 Tips for transmission maintenance

Here are six essential transmission maintenance tips to support the longevity of your vehicle:

• Check transmission fluid regularly: Ensure the fluid is at the correct level and free of contaminants. Low or dirty fluid can lead to overheating and damage.
• Use the correct transmission fluid: Always use the type of fluid specified in your vehicle’s manual, as the wrong type can cause shifting issues or damage.
• Change transmission fluid and filter: To ensure smooth operation, replace the fluid and filter at the manufacturer’s recommended intervals.
• Avoid overheating: Keep the engine and transmission cool by not overloading the vehicle and maintaining the cooling system. Heat is a major cause of transmission failure.
• Service the transmission: Regularly have a professional inspect the transmission for signs of wear, leaks, or issues that may need attention.
• Avoid abrupt driving habits: Rapid acceleration, hard braking, and excessive towing can strain the transmission, leading to premature wear or failure. Drive smoothly to reduce stress on the system.

Extend your vehicle’s transmission with proper maintenance

Your regular insurance may cover transmission damage caused by a collision or an insured event. To prevent breakdowns, maintain your vehicle regularly and avoid stressing the transmission while driving. Speak to your Ontario car insurance provider for more coverage options.