Car repair costs are typically handled by your warranty if not caused by an accident. Car repair insurance kicks in after warranty has expired or if you need to repair a used car.
If your car’s warranty is running out soon and you want to make sure you’re protected, you might want to consider auto repair insurance. This will provide an extra layer of protection that can help pay for unexpected repair costs. Your normal auto insurance policy isn’t going to pay if your axle needs repaired or you need a new transmission. These are costs that come out of your pocket and if you aren’t ready for them, can cause you some financial trouble. This type of insurance policy is also known as mechanical breakdown insurance. You put your car through the ringer every
single day and over the years, the miles add up. Regular maintenance is going to ensure your car keeps going strong and auto repair insurance can only strengthen the policy you have now.
What is Auto Repair Insurance?
This is a type of insurance that you can purchase that will cover all the repairs on your vehicle for a certain amount of time. Coverage amounts and the types of repairs that are covered will vary with providers.
Are There Specialized Car Repair Insurance Companies Or Where Can I Purchase It?
You can purchase this form of insurance from multiple sources. If you bought a new or used car and you know your warranty will be ending soon, ask the dealership if they offer auto repair insurance. But not everyone purchases a car from a salesperson and many transactions take place between individual owners. You can still purchase auto repair insurance. Simply inquire about it at the same insurance company that provides your regular coverage. They can explain the details on how it will supplement your current policy. If you finance your car, you can also ask the bank or credit union that provided your loan about this type of insurance. Many offer various policies so that you can find the right one for you.
What Does This Insurance Cover?
It’s very important that you understand the ins and outs of auto repair insurance before you purchase it. As a good car owner, you know that you need to perform regular maintenance on your car to make sure that it runs efficiently. This means changing your oil regularly, getting new tires and having old ones rotated, and replacing your windshield wipers. Auto repair insurance will not cover these types of repairs because they are considered maintenance (also an investment).
For the other repairs that are most costly and don’t occur very often, this type of policy comes in very useful. Insurance.com lists several types of repairs that will be covered: transmission and transaxel cases as well as any internal parts, certain types of engine repairs like pistons, timing gears, and values, and the drive axle housing and joints. Any driver knows that repairing an axle or replacing an essential part of your engine is something that must be done if you want to stay on the road but the costs can be staggering. This is where your auto insurance policy could step in and save the day.
What Levels of Coverage Should I Choose?
There are different amounts of coverage offered based on the company that you go to. This is why it’s essential that you shop around when looking to invest in this type of policy. A standard policy is going to cover breakdown costs and may or may not include wear or tear. Many exclude this option unless you specifically ask for it. If the company tells you that it’s not an option then you may want to look elsewhere if this is important to you.
Other companies offer what’s called a bumper to bumper policy. This means that from one end of your bumper to the other, your car’s mechanical systems are covered. This means that you can insure your electrical, cooling, air-conditioning, steering and fuel repairs. Because of the extensive nature of this kind of policy, it can be expensive but it may well be worth it when you consider the average costs of repairs. The most important thing when looking into a bumper to bumper policy is to read the fine print.
Almost all contracts are going to include a certain number of exclusions and you want to make sure that you know what those are before you start paying for a policy. And it’s not just exclusions. Some can tack on extra fees, penalties, and restrictions. This can not only apply to the car and it’s parts but also to the labor that is involved in car repair. Make sure you choose your mechanic the same way you choose your insurance: shop around!
How Much Does It Cost?
Just get a quote, you could start with our form above. But: as with all insurance policies, you don’t want to make your decision based solely on cost. There are some considerations you need to take into account to see if auto repair insurance is something worth paying for. This might require a little leg work on your part but it will help save you from unnecessary costs. Try to do some research on how much average repairs costs are for your car in certain situations that would normally be covered by this kind of policy. If fixing the engine is going to cost between $1-2,000 dollars and you know that you don’t have that much cash on hand at any time, it might make sense to break it up into insurance payments.
The insurance company that issues your policy is going to consider how old your car, the amount you drive, and what kind of condition your car is in when they determine your policy price. The amount of coverage is also calculated into the final number and you will still have a deductible that you have to meet before your coverage kicks in.
Ultimately, auto repair insurance can be a very useful tool but some aren’t aware of the benefits it can hold. If you aren’t sure that it’s right for you, ask your insurance agent for details.
