Your car is your baby, so it deserves a little extra protection from those mechanical problems that pop up right after your new car warranty runs out. Your car may break down and call for additional towing services. To protect your vehicle from mechanical repair plans – which sometimes are called mechanical breakdown insurance, you can extend or supplement your existing car warranty.
Mechanical breakdown insurance protects your vehicle against large repair bills by covering certain mechanical problems. The mechanical failure doesn’t mean fee repairs. You will probably pay a certain amount for every trip to the mechanic, be it a set fee or just a percentage of the repair bill. Note that a breakdown insurance is no substitute for proper car care. Probably, this type of insurance won’t cover repairs caused by abuse or improper maintenance.
Based on one insurer to the next, policies vary widely and may contain different names such as vehicle protection plan. Depending on the insurer, breakdown insurance can sometimes be transferred if the car is sold.
How breakdown insurance compares with extended warranty
Breakdown insurance may sound a lot more like an extended warranty that is offered by a car dealer. However, it is not quite the same thing. An extended warranty is usually purchased when a client buys a new vehicle. Relating to mechanical breakdown insurance, it doesn’t kick in until after the manufacturer’s warranty expires.
There are some few differences such as; you pay for extended warranty up front or as part of your loan, and thus you are stuck with the expense. With an extended warranty, you are supposed to bring your car to the dealership for repair, with this coverage typically letting you choose your preferred repair shop.
Are there alternatives?
For every insurance coverage, there are alternatives. Instead of purchasing insurance coverage you may consider taking these steps;
Research – Start by finding reliability records before purchasing your car. Sites such as Consumer Report and TrueDelta can help you with such answers. Regarding maintenance, ensure that you keep up with the manufacture’s recommended maintenance schedule as this is by far the most viable insurance against early catastrophe.
Look for a trusted mechanic and ask friends to recommend a local mechanic or better still, check online reviews so that you can get someone you can trust, in case repairs and maintenance are required.
You can also opt to save the money you could have spent on insurance or even extended service contract and include it to your emergency fund. Doing so gives you protection from unexpected expenses of the automotive and non-automotive variety.
If you choose to purchase car repair insurance, ensure you know what you are buying. In some cases, instead of offering insurance coverage for car repairs, some insurers resell extended service products offered by other companies and this means the coverage will not come from the insurer.