• Is Auto Repair Insurance Necessary for Everyone?

    If you’re considering auto repair insurance coverage, such as an extended warranty or a mechanical breakdown insurance policy, there are several things you need to consider. If you carefully research your options, you may find you don’t need this type of coverage at all.

    Does Everyone Need Extra Repair Coverage?

    Whenever you purchase a vehicle at a dealership, whether new or used, you will almost certainly be asked to purchase an extended warranty. However, before you sign the warranty contract, you should determine if you need the coverage or not.

    If you’re purchasing a new vehicle, the vehicle will always come with the manufacturer’s standard bumper-to-bumper warranty. In many cases, this warranty is in effect for at least three years or 36,000 miles. If you’re the type of person that doesn’t keep a vehicle for more than two or three years, then the added expense of an extended warranty is simply money wasted and you should not buy an extended warranty or mechanical breakdown insurance.

    Even if you plan to keep your new vehicle for a long period of time, you might want to consider waiting a couple of years before considering an auto repair insurance option. As purchasing the warranty at the same time you purchase your vehicle will only result in additional finance charges being paid on the car loan before the coverage even goes into effect.

    There may be other times when it is not a good idea to purchase auto repair insurance coverage as well. You should know that many modern cars are made much better than they were in years past, and generally do not break down nearly as often. So instead of paying a lot of money for coverage you may or may not need, consider saving the money and paying for repairs as they are required.