Car repair insurance covers major mechanical failures, not accidents or wear. Learn what's included, excluded, and if it's right for your car.
Car repair insurance covers major mechanical failures, not accidents or wear. Learn what's included, excluded, and if it's right for your car.
Get Instant Quotes and Buy Coverage Online From Leading Providers
Owning a car and facing breakdowns. The two go hand in glove. Some car insurance companies permit clients to add car repair insurance onto their policies.
Car owners can also buy repair insurance from independent, third-party insurance providers. The same as car owners would do when buying a vehicle service contract (VSC) from a third-party provider.
Car repair insurance covers repairs and replaces parts resulting from mechanical failure. It is not an extended warranty, nor does it replace ordinary car insurance.
The oft-asked question - “ will my car insurance cover repair costs”? The answer is a resounding “no”. Car insurance differs from car repair insurance.
Car repair insurance covers costs relating to major auto repairs. It will not cover any pre-existing issues. Car repair insurance does not cover daily wear and tear, accidents, or neglect.
Repair insurance for cars, also known as mechanical breakdown insurance, is optional. Consumers can buy it as an add-on to their regular car insurance policy. Consumers may also buy it as a stand-alone policy.
Some insurance companies insist car owners have comprehensive car insurance cover. over and above car repair insurance.
Most states in the US need car owners, by law, to have car insurance cover. Comprehensive car insurance will cover accidents, theft and conduct repairs for other incidents covered by insurance.
Read here: Does Car Insurance Cover Mechanical Problems
Auto repair insurance is often referred to as mechanical breakdown insurance. The policy covers most mechanical issues unrelated to poor maintenance or accidents.
An unexpected repair can cause huge out-of-pocket expenses. Extra coverage for costly repairs makes good sense. Never pay out of pocket again with the right coverage.
Insurance for car maintenance covers major breakdowns and malfunctions. Some parts they cover include:
Car repair insurance doesn’t cover everything. Plus, one provider will differ from the next. Here is a list of 11 of the most common mechanical breakdown insurance exclusions:
Deductible amounts, when claiming, could prove a stumbling block. These amounts are often high. Consider whether filling a claim is worth your while.
When deductibles cost more than a repair, find out whether claiming is cost-effective.
If your repair is higher than your deductible, it might be worth your while to file for a claim.
"Car repair insurance isn’t the same as collision or comprehensive insurance. It works as an addition to a standard policy rather than a replacement," - Cassie Sheets, data journalist, Insurify.
If your car is older than seven years or has a lot of miles, it may not be eligible for car repair insurance. Age and mileage are deciding factors when applying for repair insurance.
Car repair cover is usually reserved for newer cars. If your factory guarantee has expired, you might not qualify for this insurance cover.
A perfect example is Geico. They offer mechanical breakdown or car repair insurance for new or leased cars. Not for older cars with a high mileage. The cars must be under 15 months old and have less than 15,000 miles on the odometer. The customer must also be the first owner of the vehicle.
But there are other car repair insurance providers offering cover for older cars. Progressive is one such provider.
The best way to shop for car repair insurance is to learn about your vehicle's make and model.
Determine what common mechanical failures are for that specific brand of car. Learn what typical costs look like by using the Kelley Blue Book database, or similar.
Your car repair insurance won’t break the bank if your vehicle is in good condition. Choosing full cover might be worthwhile, as it might not have much of an impact on your bottom line.
Questions to ask:
Note: Car repair insurance does not cover commercial vehicles. Even when the vehicle has a low mileage on the odometer, and is a relatively new car.
Read more here: Common Misconceptions About Repair Warranties
Car repair insurance comes from an insurance company. A vehicle service contract does not. Consumers buy vehicle service contracts from car dealerships or third-party service providers.
Car repair insurance sounds a lot like a vehicle service contract (extended warranty). There are some key differences between the two: as we have explored in another article. In short:
Extended warranties are a good option if a vehicle does not qualify for car repair insurance. Compare costs, and learn which parts they cover.
Many vehicle service contract providers offer plans for high-mileage and older cars.
Many auto dealerships sell vehicle service contracts for both new and used cars. Find companies that sell standalone plans. Look for the one that suits your vehicle and your budget best.
The best way to find a good extended car warranty is to compare quotes from many service providers in one place. Did you know? You can get quotes within seconds without disclosing your personal information.
Understanding what your vehicle service contract covers is important. Get the cover best suited to your individual needs and your pocket by comparing like with like.
Roadside assistance insurance differs from other insurance coverage plans. Roadside assistance insurance is not car insurance or a factory warranty.
Car insurance covers repairs, damages caused by accidents or other incidents.
Your factory warranty will replace or repair components on a new vehicle. The warranty excludes wear-and-tear parts.
Coverage plans don’t always include roadside emergency cover. Roadside assistance insurance could prove invaluable. This applies especially when faced with emergencies, like flat batteries and flat tires.
Get your roadside insurance plan from your car insurance company. Or buy it as an add-on.
Some car coverage plans include free roadside assistance. Your car insurance might offer this as an extra perk. Car repair insurance and roadside assistance cover often go hand-in-glove. The one complements the other.
Some car manufacturers include free roadside insurance. These are for limited periods on specific year model cars.
Examples are Honda, Ford and Chevrolet. Honda offers consumers roadside assistance for 3 years/ 36,000 miles. Whichever comes first.
Chevrolet and Ford offer 5 years/ 60,000 miles roadside assistance. Lincoln generously offers roadside assistance indefinitely.
Get alternative coverage for roadside assistance from AAA, National General Motor Club, and Better World Club. Most memberships offer additional perks like travel, and discounts for dining and entertainment. Many club memberships offer family discounts.
If your car breaks down regularly, you’ll be happy to have roadside assistance. If you drive long distances, have an older car, or are a new driver, roadside assistance can give you peace of mind.
Roadside assistance does not offer emergency medical care. For this, you need to contact 911. Roadside assistance cover is not car insurance cover. It won’t cover major repairs or help with accidents..
Find out everything about the benefits of roadside insurance. Do this before signing on the dotted line.
Q. What is car repair insurance. How does it work?
A. Mechanical breakdown insurance ( vehicle repair insurance) covers repairs to electrical parts and mechanical components excluded by other policies.
Q. Parts of a car your car repair insurance covers
A. Main mechanical components are covered by your car repair insurance. Car repair insurance does not cover pre-existing issues, wear-and-tear and routine maintenance.
Q. What about deductibles. Does mechanical breakdown insurance charge deductibles?
A. Deductibles are paid for each repair. Your service provider settles the balance once deductibles are paid. Either through re-imbursement or directly to the repair shop.
Although car repair insurance is a smart, cost-effective way to manage risk, it is not for everyone. Car repair insurance can prevent hefty repair bills. Small monthly premiums help pay for large repairs. When factoring household insurance budgets, a nominal monthly amount could make a world of difference.
Car repair insurance isn't necessary for everyone, but is a smart investment for certain drivers.
