Well-maintained cars are usually reliable vehicles that will provide you the functionality and comfort you require without giving you too much trouble. But there is a reason that most people refer to their cars as having a personality. This is because they can get finicky or act up in interesting ways when they need repairs.
Car repairs can be quite expensive, and it might seem like a good policy to purchase repair insurance. Car repair insurance is similar to getting an extended warranty on your car, but it can be limited in terms of what repairs are covered under the approved coverage policy.
If you have purchased your vehicle from a reliable dealer, they would be able to advise you very well on your vehicle’s requirements. This information, plus the research you would have done before buying that particular vehicle, should give you an idea of the most expected repair issues for that model.
New Cars and Car Repair Insurance
The main disadvantage of a new car is that it depreciates as soon as you begin using it. Thankfully, they are usually unlikely to present many repair issues during the first few years, and you can concentrate on giving it regular and comprehensive maintenance.
New cars take a while to act up, but when they do, it is always best to take them back to the manufacturer’s workshop if possible. This is best because if the issue is something out of the scope of regular maintenance checkups, you can get replacement parts cheaper or even free from the dealer.
Car repair insurance would not kick in as your repairs are covered within the scope of what the workshop can provide. But, you will continue to pay the car repair insurance premium even during this period when you cannot drive your vehicle.
Used Cars and Car Repair Insurance
A used vehicle such as a modified, preowned SUV usually costs a lot less than a brand new one and comes with custom features for which you will not have to go out-of-pocket. Because it has undergone alterations and is a used vehicle, you might think that getting car repair insurance is a foregone conclusion.
But consider that reputable used car dealers are subject to regulatory checks that guarantee that their vehicles are inspected and certified before they are offered to customers. You will also receive documentation on the vehicle’s past usage and have had a mechanic look over the vehicle before purchase.
This means you can compare what you already know about your vehicle to what is covered by car repair insurance to decide if it is a necessary investment to get it for your vehicle.
Coverage Under Car Repair Insurance Can Vary
Car repair insurance is a policy that you will usually purchase from an insurance company. It covers your vehicle’s repair needs in the event of certain, usually preapproved mechanical and electrical issues.
Liability and collision insurance coverage are compulsory, and you will not be allowed to operate your vehicle without it. Car repair insurance is optional and is highly recommended close to the end of your vehicle’s mandated warranty period.
As it acts as an extended warranty, your vehicle’s repair needs will not see a spike in fees.
Check Different Policies for the Right Fit
You will have to pay premiums on car repair insurance and the premiums on the compulsory coverage. Make sure to get quotes from at least three different insurance providers and details about what specific repairs are covered.
There can be differences in premiums and coverage, so you can choose what suits your vehicle best. Some policies also limit where you can go to get the repairs. You need to see if the insurance policy covering towing will provide the service to the workshop you need to go to for the repairs.
Thus, it is best to find compatible policies that intersect in a way that reduces the amount you will have to be involved in the logistical aspects of getting your car repaired.
If you decide to get all your car insurance policies at the same insurance company, you might be able to request lower pricing and maybe even a consolidated payment plan. This will make it much easier for you to manage the costs.
A car repair insurance policy can help you extend the period in which you can build an emergency fund for your car. This is especially useful as most policies have built-in stop clauses where your car’s age is used as a stopping point for the coverage.
Regular maintenance and smart driving practices can reduce the need for repairs barring any unfortunate accidents.
