You’ve seen the late at night commercials, gotten a notices in the mail or your email about repair insurance. Most people ignored the message. But if you buy a used car, it is not a bad idea to look into Repair insurance or Mechanical Breakdown insurance. Think of repair insurance as an extended warranty program for your used vehicle. This is one way you can keep repair costs for a new to you vehicle at a minimum.
If you are buying a ‘Certified Pre-owned Vehicle’ from the manufacturer then it is customary to get an extended factory warranty. The manufacture warranties for pre-owned vehicles are generally a good deal. Purchasing a repair policy when you already have a good factory extended warranty is probably redundant. However, take the time to review that policy and see if there are any major repairs that are not covered like the electrical system or brakes. Many repair insurance policies let you choose what parts of the car you want to cover, kind of like a buffet. Therefore, you can get a policy that fills in the gap of your factory warranty. In addition, you can purchase a strictly mechanical breakdown policy. This will cover the costs of roadside assistance, towing charges and rental coverage as well as the systems specified for repair such as the drive axels and associated components, or the transaxle case with associated internal systems.
If you buy a car directly from the owner, or through a catalog, online source, or smaller used car dealership then it is a good idea to consider repair insurance. If you depend on your car for your livelihood and put a lot of miles on it, then you should consider a mechanical breakdown. Again, the ala cart method of choosing what parts and options you want to cover helps you save money over time. When comparing the auto insurance quotes, look at how much is covered for the specified time or mileage. For someone who drives a lot this can be critical in making sure you have the best-priced policy to fit your needs. Understand this is not a maintenance policy; you will still have to pay out of pocket for oil changes, radiator system flush and the like. When you search different companies for cheap car insurance, inquire if they also provide repair insurance, bundling the two could save you more.