Like everything else, car repair costs are on the rise. If you drive a brand-new car you probably feel pretty confident that you aren’t going to experience catastrophic failure any time soon. Plus, you probably have a warranty that would cover some of the bigger issues related to manufacturing defects.
But if you are out of the warranty period or if you simply drive an older car you might be in the danger zone and feeling a bit vulnerable about the possibility of having to spend thousands on an unexpected car repair. In this instance, we are not talking about 20-year-old cars; you won’t find insurance for that. Car repair insurance usually requires the car to be less than 7 years old and have under 100,000 miles.
Let’s take a look at what car repair insurance is and how it can help you in difficult times.
Car Repair Insurance vs. Extended Warranties
There are some differences between car repair insurance and an extended warranty.
For instance, car repair insurance is not transferrable if you sell the car. An extended warranty can go with the car and is a great selling feature. Also, if you do have to have a repair made and use your car repair insurance, you’ll have to file a claim with the insurance company before you have the repairs done. With an extended warranty, you don’t usually need pre-authorization. With car repair insurance, you can have the work done by any licensed repair shop, whereas you may be limited to certain repair shops with an extended warranty.
How Car Repair Insurance Works
First, you’ll have to find an insurer that offers car repair coverage because not all do. Once you find a provider, you’ll notice that car repair insurance is similar to regular auto insurance. Many policies come with a deductible, so you’ll be faced with the decision of whether or not to file a claim or just pay out-of-pocket for minor repairs.
For major repairs, the first thing to do is to call the insurance company and file a claim. You usually need preauthorization before you have work done. Once you are authorized, you can go to your favorite local mechanic to have the work done. Your insurance should cover the repairs, once you have satisfied your deductible.
What’s Covered and What’s Not Covered
The good news is that major engine components are covered by car repair insurance. Your engine, transmission, brakes, as well as your exhaust, power, fuel and air conditioning systems are covered. There are some exceptions of course such as normal maintenance, filters, tires, brake pads, spark plugs and fluids, which are generally not covered.
Is it Worth It?
Cars tend to last longer and wear better than they used to. Seven years and 100,000 miles is still a reliable car and if you’ve kept up with maintenance, you probably won’t need car repair insurance. But, it’s hard to put a price on peace of mind but that is the reason some people purchase car repair insurance.
If you want to find providers for car repair insurance, or even regular auto insurance, use the InsuranceWins form to compare quotes. Its fast. It’s easy. And you could save money!