Is Buying Car Repair Insurance Worth Your Money?

A car repair insurance policy can be added as an endorsement to your existing auto insurance to cover your vehicle repair and maintenance. However, having an auto insurance policy with collision and comprehensive coverages will protect you against repairs and maintenance, so why do you need to buy this coverage?

Collision and comprehensive coverages will reimburse for repairs resulting from accidents and hitting an object (such as a tree, lamp post, etc.), animal, and another vehicle. However, what if you need maintenance and repairs unrelated to covered incidents? This is where car repair insurance will come to your rescue. This policy will pay for several types of maintenance and repairs resulting from mechanical malfunctions, breakdowns, etc.  

However, repair coverage is mostly available for particular vehicle models, new cars, or cars with less than 12,000 miles. You can easily get repair coverage for new cars, as they do not require frequent maintenance or repairs.

Car repair insurance will cover costly repairs and maintenance, including:

• Mechanical failures unless they are excluded from your policy

• Repairs or maintenance to heating and cooling systems, engine, transmission, and other vital parts

Car repair insurance will not cover:

• Regular maintenance, including changing oils, replacing filters, checking tire pressure, etc.

• Cosmetic damage to your vehicle resulting from accidents

Repair insurance is designed to cover repairs and maintenance that are not covered by a standard auto insurance policy. So, if your vehicle has any repairs and maintenance resulting from accidents or collisions, you can cover them with your comprehensive or collision coverage.

You can choose a higher or lower deductible depending on how much you can afford out of pocket for claims. However, higher deductibles can result in lower premiums. Ensure to file a claim only for expensive repairs to make it worth your out-of-pocket expenses.

The cost of car repair insurance can be anywhere from $100 to $250 per year. Nevertheless, the cost also varies depending on the make and model of your car, how good you keep your car, the probability of filing claims, deductible, etc.

Yes, car repair insurance is worth your money if you have a brand-new car or your car does not have a warranty. Older cars will not qualify for car repair insurance, so you can buy them as soon as you purchase a car.