Reliability is one of the most important factors most drivers consider when purchasing a car. After all, a blown engine can cost thousands of dollars to replace, and other mechanical failures can add up, too. Instead of footing the bill for the repairs yourself, consider purchasing auto repair insurance to help protect you against the high cost of mechanical failure.
What is Auto Repair Insurance?
An auto repair insurance policy is purchased from an independent insurance company – usually, while the insured vehicle is still relatively new. The coverage becomes effective immediately, although it is often initially subject to any manufacturer warranties that may be in place on the vehicle. However, auto repair insurance typically becomes the first line of coverage on a vehicle once the warranty has expired. At that time, coverage usually pays for servicing in an auto repair shop with claims subject to a deductible.
Although insurers may vary in the types of repairs covered, many policies offer a bumper-to-bumper coverage option available for several years after the purchase of the car. This usually includes coverage for all parts and systems in a vehicle without exclusion. Depending on the terms of your insurance, you may be able to renew your mechanical breakdown insurance for up to 7 years or 100,000 miles on the odometer – whichever comes first. Other insurers may offer mechanical breakdown insurance that lasts for as long as you have the car, although there may be limitations as to where you can take your vehicle to be repaired.
Depending on the insurer and the terms of your policy, you may receive reimbursement for out-of-pocket expenses when filing a claim, or the insurer may instead pay the mechanic shop directly for covered repairs.
Auto Repair Insurance vs. Extended Warranties
If auto repair insurance sounds like an extended warranty offered by your car dealer or lender, it is not. In fact, the coverage is starkly unique, with a few key differences. First, auto repair insurance is real insurance issued by a company that is subject to oversight and government regulation. That means you are getting real insurance coverage – not a product that may or may not come through for you when you need it. Next, auto repair insurance policies are paid for over time. Compare that to an extended warranty, which is usually paid in full at the time of purchase. Finally, some auto repair insurance policies offer the freedom to choose your licensed repair shop (with authorization). That is in contrast to most extended warranties, which may only cover repairs from certain dealers or shops.
Insure Your Car Against Every Possibility
It may not be possible to predict the future, but you can take steps to protect yourself against whatever it may hold. You depend on your car for transportation, whether to work, school, or some other responsibility. Whether you want to protect your daughter while she is away at college or secure peace of mind for your own daily commute and travels, mechanical breakdown insurance can follow your vehicle nearly anywhere you take it in the U.S., including all 50 states and the District of Columbia.
If you are planning to purchase a new car or have recently added a new vehicle to your garage, now is the time to start thinking about mechanical breakdown coverage. For more information or to request your free quote, contact our office today.