When considering the costs associated with repairing a vehicle, you generally have two choices: handling it yourself or purchasing an auto repair insurance policy. There are advantages and disadvantages to both choices, and this article will discuss a couple of each.
One of the biggest advantages with handling needed repairs itself is the lack of the need to pay for repair costs upfront. While most auto repair insurance policies require you pay for coverage in advance or in monthly installments, by choosing to handle the repairs yourself you will be able to keep the money in your pocket or in the bank.
Another benefit of handling car repairs yourself is the option to use any qualified mechanic or repair shop you choose. Many auto repair insurance policies or extended warranties may require that you use mechanics or shops that are approved by the policy provider. The repair shop recommended by the policy or warranty provider may or may not be the best shop for the job.
A drawback with handling your own car repairs is the potentially expensive cost with some types of major repairs. If your vehicle requires a major repair, you’ll be required to pay a significant amount all at once. Also, you will be responsible for finding a mechanic or shop that you are comfortable with and does repairs at a reasonable price.
One of the most convenient things about extended warranties or mechanical breakdown insurance policies is the fact that you generally don’t have to pay a lot of money upfront. If you purchase an extended warranty at the time you purchase your vehicle, the cost of the warranty is usually rolled into the car loan and only slightly increases your monthly car payment. Alternatively, if you choose a mechanical breakdown coverage policy, the insurer will usually allow you to make monthly installments that will be much less than the cost of many types of common vehicle repairs.
Also, if you find searching for a qualified mechanic or repair shop burdensome or difficult, an auto repair insurance policy can probably help you. Most of the time, policy providers have a list of approved mechanics and shops you can take your vehicle to for repair. So, in order to find an authorized repair shop, you simply need to ask the policy provider.
One of the biggest problems with many auto repair insurance policies is the number of repairs not covered under the terms of the policy or warranty contract. Unless you purchase a very expensive policy or warranty, most policies will not cover many types of common repairs. Even if the repair is covered, you will be required to first meet a deductible in most cases. Also, many policy providers require that cheaper, aftermarket parts be used in repairs in order to lower their costs.
When considering whether to purchase auto repair coverage or simply handle the repairs yourself, you should consider all of the above very carefully. If you’re comfortable with paying for repairs as needed and don’t mind doing the repairs yourself or finding your own mechanic, then don’t purchase auto repair coverage. However, if you’re not comfortable with handling the repairs yourself, then auto repair insurance may be the best option for you.