How to Purchase Auto Repair Insurance
There are times that auto repair insurance, such as an extended warranty or a mechanical breakdown insurance policy, can help you save money on costly car repairs. When you buy a new or used car, most dealerships will offer the option of purchasing an extended warranty at the time of the sale; however, warranties sold by dealers are usually very expensive and you can do much better on your own. So, here is a quick step-by-step guide on how to purchase an auto repair insurance policy.
Step 1 - Contact Warranty Providers Directly
The Internet makes it easy to contact extended warranty providers directly. You can visit the websites of companies like Carchex and Warranty Direct to view different extended warranty plans, options and even purchase a warranty policy right off their websites. Carchex and Warranty Direct are considered to be two of the most reliable extended warranty providers in the industry, and you will save a lot of money by purchasing the warranty direct rather than through a dealer.
Step 2 - Contact Your Auto Insurance Company
If you prefer the flexibility that a mechanical breakdown insurance policy offers, most auto insurance companies now offer these types of plans. If you presently have an auto insurance policy, you can contact the insurer and ask if they offer mechanical breakdown insurance policies as well. These days, many larger insurance companies do. If your insurer does offer this type of coverage, you can probably get reduced rates for the policy because of your existing auto coverage. However, even if you need to use a different insurer, mechanical breakdown insurance is rather inexpensive depending on the type of coverage plan you purchase.
Step 3 - Go to Your Local Bank or Credit Union
If you used a local bank or credit union to finance the purchase of your vehicle, you might want to consider asking the lender if they provide additional warranty coverage for the vehicle as well. Many banks and credit unions do offer some sort of added warranty protection for customers that use their car loan products. Banks and credit unions offer these types of warranty products for one simple reason—people may not pay for a vehicle that doesn't run. Therefore, they offer these types of products to help insure the investment of both the customer and the bank or credit union.
Step 4 - Call AAA
If you're a member of AAA, you should know that AAA offers some of the best extended warranty plans available. While AAA extended warranties are not yet available in all areas, most state-level AAA associations and clubs already offer some sort of extended warranty coverage to AAA members. The cost of the extended warranties provided by AAA is in addition to your yearly AAA dues, and can be paid in convenient monthly installments. To see if AAA offers extended warranties in your area, visit the main AAA website and find the regional website for your area. Also, all AAA extended warranty plans include AAA's highly acclaimed roadside assistance coverage, which will help out with tire changes, jump starts, door unlocks and even provide a couple of gallons of gasoline if you run out.