Advantages and Disadvantages of Auto Repair Insurance
Auto repair insurance is often secured in addition to auto insurance and basic auto liability insurance. Many drivers obtain auto repair insurance to protect them in case of any damage, so they can be sure the costs of the repairs to their vehicle will be covered. However, before you sign up for auto repair insurance, consider the advantages and disadvantages of this type of coverage, and whether it really is right for your needs.
Advantages of Auto Repair Insurance
1. Accidents Happen
Accidents happen on the road all the time and whether you are involved in a small bang up or a serious crash, having auto repair insurance can be one less thing to worry about after the stress and shock inevitable after an accident. Not only can auto repair insurance give you peace of mind when you are out on the road, depending on the level of cover you choose, you can also be covered for repairs due to environmental accidents such as water damage or tree branches falling on your car.
2. Your Vehicle Will Live Longer
If you are someone who seldom buys a new car, if something happens to your vehicle then you are going to want it fixed properly. When you have auto repair insurance you can be sure you will be able to afford the best possible repairs for your vehicle if the worst were to happen. This means you don’t have to waste time and money doing DIY repairs to your vehicle, and can instead be sure the repairs carried out on your car will be of a high quality, and that your car doesn’t have to suffer, wear out or break down because it is in need of proper repair.
3. Cover is Inclusive
If you shop around for auto repair insurance you will be able to find very inclusive cover. Affordable auto insurance doesn’t mean you have to miss out on any extras, and your policy can easily include a loan vehicle, and gap insurance to cover the additional costs of replacing a new vehicle such as dealer delivery or registration. You may also be able to negotiate insurance discounts on your auto repair policy if you are a safe driver, have a good driving record and are not in a high risk category, i.e. not under 25 years old.
Disadvantages of Auto Repair Insurance
1. Auto Repair Insurance Premiums
The ongoing monthly premiums of auto repair insurance can be quite costly, and a quick and easy way to work out whether they are worthwhile for you is to add up the premiums you would pay over the course of a year; if they add up to more than the cost to replace your vehicle, you are likely to see little benefit in auto repair insurance. If you have basic liability insurance—which is required by law in most states—then you should be able to cover any costs associated with an accident which is your fault, for which you have to pay damages.
2. Insurance Takes Time to Pay Out
If you are in an accident and need to have your vehicle fixed and back on the road as quickly as possible, you may be held up by auto insurance companies who have lengthy paperwork processing systems. If an auto insurance company takes its time to process and pay out your claim, you may start to realise you could have organised the repairs quicker yourself.
3. Cover is Not Always Inclusive
A major disadvantage to auto repair insurance can be when you fail to read the details of your policy, or simply assume all repairs to your vehicle will be covered. Few insurance policies are all inclusive and that is why it is important to carefully read the fine print before paying the premiums of your auto repair insurance. In the case of an accident you may find your insurance company refuses to pay for your claim because the repairs specified are not covered in your policy, or don’t meet the specific circumstances in the policy paperwork.
Auto insurance and auto repair insurance can be very important in protecting you in the case of an accident, and being able to take care of the costs associated with the repairs and compensation in case of an accident which is your fault. However, as with any new product for your vehicle, make sure you carefully research the auto repair insurance policies available to you, and make your decision based on what best suits your needs at that time.