It will pay large repair costs however, you might already be insured
The auto insurance policy you have may protect your vehicle from damage when you’re involved injured in an auto accident. However, you’re entirely on your own when it is paying for repairs that are routine. This is where car repair insurance which is often referred to as mechanical breakdown insurance is available. It can help repair your vehicle if one of its key components fail, thereby avoiding an enormous repair cost. It doesn’t cover everything and isn’t offered on every car, and can have overlapping coverage with what that you have. This article will help you determine whether car repair insurance makes an appropriate sense.
What Do Car Repair Insurance Cover?
Car repair insurance is offered by the same companies who sell regular auto insurance, including GEICO as well as Mercury Insurance.
The coverage of a policy can differ between insurers, however, generally, a policy will cover repairs that involve the following components of your vehicle:
- Electrical systems
- Heating and air conditioning
- Systems for cooling
- Steering system
- Exhaust system
- Fuel systems
Like other auto insurance, car repair insurance typically has a deductible–generally in the range of $100 to $300–that you have to pay out of pocket before your insurance kicks in. Therefore, it has little or nothing to pay for repairs that are minor but it will be able to cover a fraction of bigger ones. According to AAA the most common repairs to cars typically range from $500-$600 but some could be much more.
What isn’t Car Repair Insurance Cover?
This can also vary from insurer to insurer , and the policy in question, but generally the case of car repair insurance, it won’t be able to cover:
- Routine maintenance and upkeep like tune-ups and oil changes and tire rotations
- The damages that result from accidents (which is the purpose of the collision coverage of your auto insurance policy is designed for)
- Damages due to maintenance that isn’t done properly
- Wear and tear from everyday use
- The cosmetic wear and tear
- Damages that occurred prior to the purchase of the vehicle
- Corrosion or rust
Your insurance policy could also prohibit repairs covered under an extended warranty, if you are covered by one. If your car requires repairs due to an recall, these would be covered from the maker, but not by your insurance policy for auto repairs.
Car Repair Insurance Limitations Car Repair Insurance
There are a few potential disadvantages when you purchase car repair insurance. This kind of insurance can be difficult as most insurance businesses have strict boundaries regarding their policies. It can take weeks or months to reach you and claims could be rejected at the discretion of the insurance provider. Repair insurance for cars will not meet all your requirements, since most policies can be modified. If you sign up for insurance to repair your car you could end up needing repairs for the part of your vehicle that is not insured.2
Does Your Car Qualify to be eligible for Car Repair Insurance?
Generallyspeaking, insurance companies that sell insurance for car repairs only offer it for cars that meet certain standards for mileage or age. It is possible to obtain an insurance policy if you purchase an unremarkably new vehicle that has not had lots of miles. Insurance companies may decide not to renew your policy if the vehicle is at the age of the vehicle or has a certain amount of miles.
GEICO offers, for instance, provides its insurance only to vehicles that are less 15 months or less, and that have under 15,000 miles on its count. After that, you are able to extend the coverage for a period of 7 years, or for 100,000 miles or the latter, depending on when you first.
Does Car Repair Insurance Value for money?
The price of insurance for car repairs is dependent on the type and age of the vehicle as well as the insurance company as well as the policy specific to its benefits, as well as other aspects. The typical cost is between $30 and $100 or more in a year. If you do ever make use of it, you’ll be required be able to cover deductibles of of $100 300, $250, or $300. What is the value of it?
On other hand, it might make a huge difference in cash if you’re facing an immense repair cost. However you should ask yourself, what’s the likelihood of this?
Today’s cars are more reliable than they were. They, when properly maintained, will last for miles without major repairs. Manufacturer warranties include more components and last longer, in many instances.
For instance, Ford’s latest warranty on 2021 models states that it will “without charging, repair or replace the components of your vehicle that fail or fail in normal use during the period of coverage due to manufacturing defects in the factory-supplied material or factory workmanship.” The bumper-to bumper warranty is valid up to three years, or 36,000 miles while the powertrain warrantee (covering the transmission, engine and other components) is valid up to five years, or for 60,000 miles.
A car repair insurance policy can be beneficial in the event that your vehicle requires expensive repairs during the time period between the time your manufacturer’s warranty expires (say at the end of the period of three to five years) and when your car repair insurance cannot be renewed (say after seven years).
Solutions for Car Repair Insurance
One option that could be more sensible is to put funds in an emergency fund before you purchase your car, which you could use to cover any repairs that are required after the manufacturer’s warranty expires. If you don’t want to use the emergency fund to pay to pay for repairs to your car but it might be useful for different purpose.
If you have purchased an extended warranty through your dealer It could also be overlapping with the insurance that covers car repairs which covers a variety of same repairs once the manufacturer’s warranty has expired. A warranty extended could cover enough things to make insurance for car repairs not necessary. Additionally, you could buy the extended guarantee by incorporating it into your car payments or as a lump sum when your car is fully paid off. Extended warranties are a good option when you plan to purchase a pre-owned vehicle and are anticipating it will require repairs that go beyond the standard warranty provided by the dealer.
Frequently asked questions
Does AAA offer Auto Repair Insurance?
No. On a national scale, AAA does not offer insurance for repairs to vehicles, but it does provide it with extended warranties via some members of the state level AAA clubs. The company does provide roadside assistance when you have an AAA membership however.
What is CarShield?
CarShield offers an extended guarantee company that offers contracts to drivers to cover the possibility of mechanical problems in their used and new automobiles. CarShields agreements include maintenance for motorcycles and RVs, protection for electric vehicles, and an emergency roadside assistance package.
How Much Do Mechanical Breakdown Insurances Cost?
Mechanical breakdown insurance (MBI) offers coverage similarly to the insurance for car repairs. Typically, this insurance may be priced between $50 and $100 per year, however it is contingent on the policy as well as the insurance company that issue it.
How long will a car Warranty last?
The average warranty for a car is 3-years or 36,000 miles in accordance with Kelley Blue Book. Kelley Blue Book.
In the grand scheme of things the insurance for car repairs isn’t costly. It could, however, duplicate the coverage that you already have with your manufacturer’s warranty during the initial few years you own your vehicle. It could also end before you’ve ever faced any major issues with repairs particularly if you take care to maintain your car in a timely manner. In deciding whether or not to purchase a policy it’s best to consider these aspects:
- What is the length of time you expect to keep the car?
- If you have a brand new car warranty or an extended warranty, you should check it out.
- How much you’ll be paying in annual premiums and in deductibles should you ever have to submit an insurance claim.
- What’s covered in the policy, and what it does not
- How can you save enough funds to cover the cost of a major repair from your pockets if your car requires one