When it comes to auto repair insurance coverage, there are many things about this type of coverage many people are unaware of. In fact, before you purchase one of these policies, you should know of its limitations, and whether you need the coverage at all.
If you’re considering auto repair insurance, whether it be a mechanical breakdown insurance policy or an extended warranty, there are several things you will need to consider:
Partial Coverage – most of these policies do not cover all parts of your car; in fact, most policies contain exclusions for many common types of repairs. While some policies do offer bumper-to-bumper warranty protection, these types of policies are generally very expensive and add significantly to the overall cost of a vehicle.
Deductibles – regardless of the type of auto repair insurance policy you purchase, you generally will be required to meet some type of deductible before the coverage will cover any repairs at all. Some policies actually have a deductible amount on each part that is used in a car’s repair, and will usually require a customer policyholder spend several hundred dollars before the coverage pays for anything.
Other Insurance Hassles – because auto repair insurance policies or extended warranties are a type of insurance coverage, you may experience many of the hassles commonly associated with making an insurance claim. You may be required to pay for the repair out-of-pocket and then be reimbursed by the policy provider. In some cases you may be reimbursed fairly quickly, and in others – it may take weeks or months to receive your money.
While auto repair insurance policies are a good idea for some consumers, you may want to carefully evaluate if this type of coverage is appropriate for you or not. Today’s modern vehicles are made much better than they were in the past, and generally do not break down nearly as much. So, before you spend your money on these types of policies, you might want to consider saving the money and paying for repairs yourself as they are needed.