Should you get repair car insurance?

Car insurance or auto insurance is a very common term but hardly anyone knows about repair car insurance. A normal car insurance means that your car is covered against any accident, damage, theft and even liabilities against in-fault accidents. But what this insurance doesn't cover is the usual wear and tear, maintenance and other repair costs. These costs may include electrical failures, mechanical failures or any other damage which is not done by an accident. Generally, these costs or issues are covered for new card when you buy them since the car is under warranty from the car company. And usually the warrant lasts for 3 -4 years and there is a limitation on the mileage as well. The warranty usually expires after about 36000 or 48000 miles. But the problem is that you will rarely have to use this warranty since all these issues start cropping up when car gets older.

This is where repair car insurance comes in. A lot of people are not aware that such an insurance policy exists for their cars. Therefore they end up paying for all such costs from their own pockets. When you buy old cars for which the company warranty has already expired, it is very important to buy repair car insurance since this insurance can save you repair cost of the vehicle about which you don’t know much.

What exactly is repair car insurance?
You can think of repair car insurance as an extended warranty for your car. This insurance will cover costs of repair of your car when the company warranty expires. It will also cover costs of car repair which your company warranty doesn’t cover.

How does repair car insurance work?
Like any other insurance policy, repair car insurance is also a contract between the insurance company and the vehicle owner. Under this contract, the vehicle owner pays premium to the insurance company and the insurance company will pay the bills of car repair in case of any breakdown or any other service required. What all services and repairs are covered under policy depends on type of coverage taken by the vehicle owner. Since all countries and even states have different laws regarding car insurance, it is very important that you understand the terms and conditions of the policy before signing the contract.

What all does a repair car insurance policy cover?
As mentioned above, there are different ways in which the repair auto insurance will cover your vehicle. The standard auto repair insurance policy will cover the cost due to breakdown of the car. This means that they are liable only when a breakdown happens. They will not cover any slow breakdown of parts which result due to general wear and tear. This is generally the cheapest repair car insurance option. If you need additional coverage for general wear and tear or other types, you will need to pay extra premium.

Another type of coverage includes bumper to bumper coverage. This means, they will cover everything related to repair expense of your car. Needless to say, this is the costliest option. Power train repair coverage is also available for older cars.

A few things you should consider before buying a repair car insurance policy:

• Higher the mileage on the car, more expensive the insurance will be. Usually you can get repair car insurance till your car reached 100,000 miles.
• Check the deductible on the policy. You may want to keep the deductible a bit higher to lower your premium amount.
• Check if the repair insurance policy is transferable. In case it is, then you could sell your car at a good rate.

If you are concerned about the cost of breakdowns and repairs for your used car, I recommend that you check out various repair car insurance companies whether online or directly. The relatively small cost of used car warranty protection can easily save you thousands of dollars in unexpected expenses and give you some peace of mind just by getting yourself a good repair car insurance.