Most drivers, if not all, know the struggle of having to deal with cars that suddenly break down without a warning. It can be a headache since car repairs can be expensive especially if the damaged part is one of the car’s major parts and you are financially unprepared. A problem such as this can be prevented if you have been saving for your car’s future repairs or if you have purchased auto repair insurance. Auto repair insurance is an added protection for your car that protects it from unexpected mechanical breakdowns and it extends beyond your factory warranty. There are many auto repair insurance companies that offer this coverage such as Carchex, Endurance, AAA, Mercury Insurance, and GEICO.
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Auto Repair Insurance Companies: What is Auto Repair Insurance?
Most drivers probably know that in order for them to have their cars registered and be legally driven on public roads, they must have their car insured. They have to check their state’s minimum liability coverage and get that required coverage for their cars. The reason for this is to get the drivers to become liable or responsible for any damage they will cause in the event of an accident. This auto insurance policy can also have a comprehensive and collision coverage that will cover the damage of your car when accidents happen.
This auto insurance will help you with your car repair expenses when the damages are only related to a car accident or other problems covered by the policy. Repairs for damages that are caused by normal use or any unexpected mechanical breakdowns not related to any car accidents are not covered by this type of insurance and you will have to pay for them yourself.
Fortunately, there is a coverage that offers this type of coverage and it is auto repair insurance. Today, there are a lot of auto repair insurance companies that offer this coverage and it can really provide help to car owners by covering the expenses for their car’s mechanical and electrical problem repairs. This type of insurance is sold as a separate policy and is not included in your regular car insurance.
The auto repair insurance is usually offered by insurance agencies as an added service or protection to your existing auto insurance policy. There are also auto repair insurance companies that offer this coverage.
The auto repair insurance covers the repair costs for your car’s mechanical components, internal systems, and its electrical system. It can help you finance repairs and part replacements but it does not cover everything. The specific coverages can vary from insurer to insurer but the parts that are usually covered include the cooling system, air conditioning, engine, transmission, exhaust, electrical system that includes the car’s computer, steering components, and fuel systems.
Since the auto repair insurance only covers repair costs of the car’s mechanical components and electrical system that are damaged due to normal use, it won’t cover damages caused in a car accident. It also does not include routine maintenance such as engine tune-ups, wheel balancing, suspension alignment, tire rotation, and oil changes. Parts that usually experience normal wear and tear like brake pads and tire and non-mechanical pieces like moldings or trims will not be covered, too.
If the damages in your car are caused by poor maintenance, the auto repair insurance will not cover its repair costs as well as corrosion or rust and all the parts that are covered by a recall, covered by a voluntary manufacturer repair program, and damages that already exist before purchasing the auto repair insurance.
Auto Repair Insurance Companies: What is the best auto repair insurance?
As the vehicles get so advanced, their parts or components also become too complicated. If these complicated parts get damaged, it can be very expensive to repair. Many car owners don’t usually save for the future repairs of their cars thinking it will not happen anytime soon. Fortunately there are auto repair insurance companies that offer coverages that help car owners pay for the major repairs of their cars.
These auto repair insurance companies have promised that the car owners don’t have to worry about mechanical breakdown repair costs ever again. But how will you know which of the auto repair insurance companies is the best? What is the best auto repair insurance? Let us help you with that. Here are some of the best and popular auto insurance companies that offer auto repair insurance coverage.
- Carchex
The Carchex is a broker for vehicle service contracts. It specializes in matching the consumers with the service plan they need. Since Carchex is a broker, it is only as good as the companies it associates itself with. However, with Carchex, it has proven that it has chosen well since it earns an A+ rating with the BBB or the Better Business Bureau that has always been the go-to resources for assessing a business's performance and trustworthiness.
The Carchex has five contract tiers and coverage options of up to ten years and is focused on making lasting value and giving more choices for the consumers. A number of top-rated and well-known service providers are featured on each of its contract tiers. If you have an older vehicle, Carchex is a good option since its coverage length options that include a 250,000 mile maximum mileage coverage limit.
- Endurance
Endurance is known to be a well-respected direct provider rather than a broker. Endurance has earned a B+ rating with the BBB. It is not an insurer but the company has been providing four levels of coverage made to fit the needs and budget of the consumers. It offers an option that allows you to spread your contract payment over up to three years, making its payment options more flexible compared to its rivals. Its monthly cost will be more affordable than other auto repair insurance companies.
The Endurance offers coverage for engine and transmission work for its every plan. There are also step-level and premium plans that have an expanded list of coverages to more areas or components of the vehicle. For new plan purchases, the consumers will get one year of free Endurance Elite Membership that includes several benefits such as member rewards, roadside assistance, and tire replacement.
However, unlike the Carchex, the Endurance coverage is only available up to 160,000 miles. It is a bit lower than some of its rivals but higher than other popular insurance providers.
- AAA
Most of the people must have known AAA as an auto insurance provider, a roadside service provider, or maybe some might’ve recalled that it is a travel company. You can’t really blame them since the AAA company has been running for 117 years and the AAA does really provide all these services.
The AAA is known to provide four levels mechanical breakdown coverage which is also known as the auto repair insurance. This coverage can cover major car repairs for up to seven years or 230,000 miles. It also has a premium Exclusionary package that copies a lot of coverage that your car probably had when it was still covered by its factory warranty.
AAA also offers three additional plans that can provide a more budget-friendly coverage and it covers a long list of mechanical repairs that include engine and transmission repairs in all cases. The AAA contract payments may be spread out over two years with no interest, making it more affordable and flexible.
- Mercury Insurance
The Mercury Insurance’s auto repair insurance is also being sold as the Mercury Mechanical Protection. It has four plans you can choose from that can cover the cost of repairs for up to seven years or 100,000 miles. This coverage also includes benefits such as the rental vehicle assistance that can help you cover the rental car cost, road hazard tire protection, roadside assistance, and a trip interruption coverage that can help you with the lodging expenses when your car breaks down somewhere and leaves you stranded far from home. Mercury’s platinum coverage has a deductible reimbursement of up to $500 that can be placed into your Mercury auto insurance policy whenever you have a claim.
- GEICO
GEICO is known as one of the best auto repair insurance companies that offer coverage for mechanical breakdowns. It offers auto repair insurance or mechanical breakdown insurance for new or leased vehicles that are not more than 15 months old or have less than 15,000 miles. Once you have bought the said coverage, you will be able to renew it for up to seven years or 100,000 miles.
GEICO’s auto repair insurance covers all vehicle parts and systems with a few exclusions. It will only cover the damages that occurs from normal use. It will not cover damages that are done intentionally or damages that is caused by improper maintenance. GEICO, just like any other auto repair insurance companies, does charge a deductible which is $250.
Before you pick one from the auto repair insurance companies and purchase an auto repair insurance, you need to consider a lot of factors. You need to ask these auto repair insurance companies some questions before you sign any contracts. You need to ask them what the exclusions of coverage are or how much their deductible is and how it can be applied in a claim.
You also need to ask them their process on how to make a claim or if the coverage is transferable if ever you’ll sell your car, and whether there is anything that you have to pay upfront. You need to know what costs are covered and if all labor costs are covered. Knowing if they only allow authorized repair shops or if you can choose a repair of your choice will be useful, too.
Auto Repair Insurance Companies: How does auto repair insurance work?
Now you know about the best auto repair insurance companies and you probably already have an idea which one to pick, but how does it really work? How can you make a claim?
If your car is in need of a repair because of some mechanical or electrical issues, you can file a claim with your auto repair insurance company. Usually a claims representative will assess it and will determine if the problem is eligible for auto repair coverage. The representative may check if the damage has occurred because of a defect or due to normal use and not because you failed to maintain your car or perhaps caused the damage yourself.
There are instances where the car has a damaged part because the owner did not follow the recommended oil change intervals, or maybe used the wrong type of fuel. Some car owners accidentally cut some wires or damage some parts while trying to install aftermarket accessories. These types of damages will not be covered by the insurer.
If your car’s damages are indeed covered by your auto repair insurance, you can take your car to a repair shop. You need to check with your auto repair insurance company first if you can go to a repair shop of your choice before you take your vehicle there to make sure that it will be covered. There are some insurers that restrict which repair shops you can go to.
Auto Repair Insurance Companies: Is auto repair insurance a good deal?
It is true that the auto repair insurance companies offer coverages that can help and protect you from any unexpected expense when your car suddenly breaks down. The potential value might be worth it, or not, depending on what part breaks and needs repair.
The worth of this policy can also depend on what vehicle you own, its age and mileage. New vehicles are still covered with the factory warranty and the repairs are usually factory defects that can be repaired for free. But if you have an older vehicle, the probability of it having an unexpected mechanical breakdowns is much higher. If you can have auto repair insurance for this type of car, then having it is probably a good deal. However, if you end up spending more on the auto repair insurance’s monthly payments without taking advantage of the coverage, it might not be worth it.