Types of car insurance
Let’s start with the basics. We offer two types of car insurance. Each type provides a different level of cover and will suit different needs and budgets.
Does my car insurance cover mechanical faults?
You might be wondering whether your car insurance covers you for mechanical faults. But what exactly do we mean by mechanical faults, and how do they differ from insured events?
Insured events are the incidents that your insurance policy covers you for. You can find a list of insured events in the insurer’s product disclosure statement, but they generally include things like accidents, fire, theft, storm damage, and malicious damage.
Mechanical faults are mechanical or electrical failures that can happen to your car as a result of general wear and tear or a defective part. For example, engine failure, faulty brakes, or a flat battery are considered to be mechanical faults. Often, mechanical faults are caused by common issues like corrosion, friction, leaks or rust.
While mechanical faults can be unexpected and render your vehicle unsafe to drive, they’re not considered to be an insured event – meaning your car insurance policy won’t cover them. That’s because mechanical problems may not be unforeseen and can often be prevented. An insured event, on the other hand, is an accidental, unexpected or unforeseen event, and is therefore covered by insurance.
Good news if you drive a newer car. Mechanical issues are often covered by the manufacturer’s warranty, meaning the manufacturer will cover faults and defects if they’ve been discovered within the warranty period.
What if a mechanical fault causes a car accident?
If your car breaks down by the side of the road, your car insurance won’t cover you for the repairs. However, if your broken-down car is then involved in an accident, your car insurance may cover you for the damage that resulted from the accident – but not from the mechanical fault that caused the breakdown.
Similarly, if your brakes fail while you’re driving and cause you to crash into a tree, the damage caused by the collision may be covered by your car insurance, but the replacement brakes won’t be. Brake failure is considered to be a mechanical fault as it could have been anticipated and potentially prevented.
Keep in mind that if your vehicle isn’t roadworthy, or you were aware of the mechanical problems and chose to drive it anyway, your insurance claim could be rejected by your insurer.
How to avoid mechanical faults in your car
Choosing the right car insurance
Want to find out more about our Car Insurance policies?
This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (“Allianz”). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.
Any opinions expressed constitute our views at the time of issue and are subject to change. Neither Allianz, nor its employees or directors give any warranty of accuracy or accept responsibility for any loss or liability incurred by you in respect of any error, omission or misrepresentation in this article.
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Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. Before making a decision about this insurance, consider the relevant for this insurance are available on this website. We do not provide any form of advice if you call us to enquire about or purchase a product.
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