Car Repair Insurance

Dispelling The Myths About Car Repair Insurance

car repair insurance

There seems to be a lot of confusion about what car repair insurance is and what it actually does.  In these times of economic uncertainty, when every last dollar in our household budgets count, there is no room for confusion when it comes to our livelihood.  For most of us, that livelihood is dependent on our cars: for work, for family, for school, for play…for everything.  So knowing all there is to know about how to save money and prepare yourself in the event of a breakdown is tantamount.

What Is Car Repair Insurance?

First, to begin with, let’s take a look at exactly what auto repair insurance is: car repair insurance is basically an unending form of a car extended warranty.  This type of car insurance warranty covers natural wear and tear on your automobile, unlike the types of warranties you would have that would provide you with comprehensive coverage in the event of an accident. 

Often known as “car breakdown cover plan”, car repair insurance is attractive to some drivers who feel that the added protection against costly breakdowns is well worth the price of the insurance and deductibles.  Car repair insurance can become particularly useful on cars that have run out of the original manufacturer’s warranty, especially for pre-owned certified later models. 

There are a few different types of subdivisions of car repair insurance and each provider differs in which they offer.  Some offer a standard repair insurance which covers wear and tear as well as naturally occurring breakdowns.  Other companies only offer mechanical breakdown insurance, which only takes care of repairs when breakable parts need to be either replaced or repaired.

Essentially, depending on which insurance provider you go with, you will be able to choose which parts of your car you want to cover with a car repair insurance policy; be it the transmission, engine, electrical system, muffler or even a “bumper to bumper” policy that is all inclusive.  The flexibility of a car breakdown cover plan is very attractive facet of car repair insurance.

Clearing Up The Air About Car Repair Insurance

Unfortunately, there is still a lot of confusion about auto repair insurance, as mentioned above.  This confusion can prove costly as misunderstandings about policies can often result in car owners having to pay out of pocket for expensive car repairs.  So, in order to better equip you with the knowledge you need to attain the proper car repair insurance policy for you, let’s take a look at some of the common myths and misconceptions about your car breakdown cover plan:

Auto Repair Insurance Is The Same Thing As Car Extended Warranty

This is a myth and is not true.  The reason for this is that a car extended warranty lasts for a specific amount of time and will eventually run out.  Car repair insurance is available as long as you want it and the policy will be effective no matter the age of your vehicle.  It is up to you to determine if and when you terminate your auto repair insurance.

You Don’t Need More Car Insurance

While not definitively a myth due to each individual person’s insurance needs, haves and wants being specific to them, it certainly is true that there is a false comfort that we take from having just minimal insurance policies in place.  With cars, this is no different.  A new car will have collision coverage and a comprehensive warranty, and that is fine, but with a used car, you normally receive limited coverage for three months only.  Plus, even with new cars, there can be fine print that can limit or cancel parts of your coverage.  By buying a car repair insurance policy, you can make sure that you are covered on your own terms, for however long you like.  

Car Repair Insurance Pays for Existing Problems

Some people are under the impression that car repair insurance is an easy way to get your car fixed for cheap.  While there certainly are some unethical ways to do this as well as a few providers that will let you repair existing problems, most providers of auto repair insurance are going to have a time period which you must wait out before having repairs done as well has require you to be upfront about the current condition of your car while applying.  For more information on each provider’s policy on this, you will have to shop around. 

Car Repair Insurance Only Covers A Small Part of the Repair

This myth arises from auto repair insurance holders who have a deductible.  It is the same as with any other insurance: if you have a deductible, you pay that and that only.  Of course, if you opt for a car repair insurance policy that pays for the entire repair, you can skip the deductible altogether.  This is particularly helpful with high cost part coverage like transmissions and engines which run in the thousands.

Repairs Are Done, No Matter What I Say

Contrary to popular belief, you do have a say in which repairs and parts you want for your auto with car repair insurance. This is especially true when it comes to certain plans which may charge you a penalty for going with a more expensive repair than necessary.  For instance, if you want that top of the line engine put in, you may only have to pay a small penalty fee and your car breakdown cover plan will cover the rest!

Is Car Repair Insurance Right For Me?

In the end, only you can answer that question.  Some great advice before buying auto repair insurance is to take into account these things:

·    - The age of your car and how likely it is to break down

·    -  How much parts for your car are going to cost with no insurance

·   –  How much car repair insurance is going to cost you and will that balance out or be cheaper than repairing or replacing the part yourself

·    Do you feel like you need a car breakdown cover plan

With all of these things in mind, if you feel that car repair insurance can benefit you, it would be wise to look into it right now as prices are at an all-time low. Ceck out Car Repair Insurance Providers which are providing various plans to suit your requirements.