Do I Need Car Repair Insurance?

Lots of drivers might have questions about what car repair insurance is, and whether they need it for their vehicles. Generally, the drivers who may need car repair insurance are those who are operating older vehicles, who don't know any reputable mechanics and who may have problems financing major repairs. Car repair insurance is not for everyone, but some drivers may find it a good hedge against risk.

Your standard auto insurance policy that you use to legally get a vehicle on the road will not cover repairs. Even if your policy includes collision and comprehensive coverage, it will not cover repairs on a vehicle. On the other hand, a warranty will cover repairs. The problem is that warranties eventually run out. That's where car repair insurance comes into the picture.

Car repair insurance is a type of policy that some might call "extended warranty coverage." These kinds of policies provide insurance against either breakdowns from malfunctioning parts, or general wear and tear on the vehicle. Some car repair insurance can be targeted to specific parts, such as major engine or transmission damage, or other specific vehicle systems.

If the driver already has a trusted mechanic who would do any necessary work on a vehicle, he or she will probably not opt for car repair insurance. One reason that drivers may shy away from this kind of insurance is that the insurer may be only interested in collecting premiums, and not really interested in paying claims. Anyone with any kind of insurance can tell you that getting claims paid is a major hassle. That's why, if a driver can figure out that the long-term costs of the insurance versus the necessary repairs may equal out, they will often take their chances and pay out-of-pocket for repairs. This is especially true for drivers who are a little savvier about vehicle repair, and can use their knowledge as leverage to negotiate with mechanics.

Those who would benefit most from this kind of insurance are drivers who may not have the savings to pay for major repairs. Without a trusted shop and with limited income, a driver can find that one major breakdown on a vehicle can threaten the entire household budget. That's where car repair insurance can be worked into the budget to provide for these situations. Although lots of car repair insurance can be kind of a rip-off, one of the more credible shops, Warranty Direct, reaches out to customers online. Check out this option if you feel like you could use insurance against a vehicle breakdown.