If you’re looking to extend the warranty coverage on your vehicle, an auto repair insurance policy may provide the coverage you need. An auto repair insurance policy is simply another name for an extended warranty or mechanical breakdown insurance policy. Both types of coverage offer the benefit of additional warranty protection.
Regardless if you choose an extended warranty or a mechanical breakdown insurance policy, they both cover the costs of parts and repairs for certain types of repairs that are included in the policy contract. Generally speaking, both types of coverage are only effective after the original car manufacturer’s bumper-to-bumper warranty has expired and only covers specified repairs and parts included in the contract.
Auto repair insurance coverage will generally cover all the costs of covered parts and repairs once a predetermined deductible has been met. So, when you purchase an auto repair insurance policy, whether it is an extended warranty or a mechanical breakdown policy, you are in effect extending the warranty of your vehicle. However, you should be aware that no type of auto repair insurance coverage will be as complete or thorough as the original manufacturer’s bumper-to-bumper warranty.
While auto repair insurance does cover the costs of parts and repairs as specified in the policy contract, there are other things that you should consider. For instance, most policies will require that you pay for the repairs out-of-pocket and then submit a claim to the policy provider in order to be reimbursed. Also, some policies restrict the policyholder in terms of where the car can be repaired and the types of parts that can be used.