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Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents per mile tax deductions or reimbursements for business or government travel. Odometer tampering, detected during claim processing, voids the insurance and, under decades old state and federal law, is punishable by heavy fines and jail. In 1998, the Progressive Insurance company started a pilot program in Texas, in which drivers received a discount for installing a GPS based device that tracked their driving behavior and reported the results via cellular phone to the company. The program was discontinued in 2000. In following years many policies including Progressive have been trialed and successfully introduced worldwide into what are referred to as Telematic Insurance. Such 'telematic' policies typically are based on black box insurance technology, such devices derive from a stolen vehicle and fleet tracking but are used for insurance purposes.

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A warranty will cover repairs, but warranties eventually run out. That's where car repair insurance comes into the picture. Insurance for car repairs is insurance that covers normal breakdowns and part failure, not generally covered by a standard auto insurance policy. Car repair insurance is a type of policy that some might call "extended warranty coverage. " Some car repair insurance can be targeted to specific parts, such as major engine or transmission damage, or other specific vehicle systems. For example, if you were driving and ran into a light post, if you have comprehensive and collision insurance coverage, your insurance company would help pay for the repairs. However, if your water pump blew while you were driving, your regular car insurance would not cover the repair. Car repair insurance would cover such an eventuality. Keeping Mechanics Honest One of the big advantages to having the right auto repair insurance policy is that it covers the total cost of some major repairs. When customers are paying out of their pocket, some mechanic shops have no problem charging endless amounts of money for their services. With the right auto repair insurance, the insurance company not only picks up the tab, but it also regulates the costs, and lets a customer or policyholder know if the mechanic's charge is excessive.