Car Repair Insurance: Is It Really Worth It?

It’s common knowledge that every driver will have to deal with automotive problems at least once, and probably more. Without comprehensive auto insurance, you could be out of money for expensive repairs every time your car breaks down. The good news is that you may get insurance that will pay for any significant repairs to your new and older cars. In this piece, we’ll examine what car repair insurance companies and costs entail and whether or not it’s worth it.

Car Repair Insurance

Auto repair insurance will pay for the expenses related to repairing or replacing your car in the event of an accident. Auto repair insurance does not cover common rust and corrosion, as well as common wear and tear on brakes. Tires, windows, and vandalism are also not covered. The deductible is the amount of money you have to pay out of pocket before your insurance company starts paying for repairs. Paying a nominal premium on a monthly or annual basis is sometimes required to keep this protection in force.

Types of Car Insurance Cover

There are four sorts of auto policies that you might wish to investigate, each offering varying levels of protection. Those things are:

#1. Act Only Car Insurance Cover

Some other names for this protection are third-party liability cover and third-party insurance for motor vehicles. The legislation mandates that all vehicle owners carry liability coverage. It’s the cheapest car insurance option out there.

#2. Comprehensive Car Insurance Cover

Theft, accidents, fires, and other disasters are just some of the risks that comprehensive insurance protects against. This is the finest insurance that most people can afford. In the event of an automobile accident, the insured and any bystanders are both protected by comprehensive insurance.

#3. Third-Party Only Car Insurance Cover

“Third-party only” insurance covers losses incurred by third-party vehicles and property. However, theft or vandalism of your vehicle will not result in compensation for repairs.

#4. Third-Party, Fire and Theft Car Insurance

Car insurance that only protects against liability to a third party is called “third-party only.” Insurance not only pays for repairs to other people’s vehicles and property but also replaces your own if it’s stolen or destroyed in a fire. If an attempted theft damages your car, you can also file a claim.

Car Repair Insurance Coverage

Coverage for electrical and mechanical failures is included in collision insurance. Also called “auto repair insurance” or “mechanical breakdown insurance,” this policy functions similarly to an extended car warranty. It can help you pay for difficulties connected to wear and tear or other common faults, such as a broken air conditioner or an engine failure. Coverage details for mechanical breakdown insurance vary by provider but often include:

Air conditioning and heater
Cooling systems
Electrical systems (including the car’s computer)
Engine
Exhaust
Fuel systems
Steering components
Transmission
Brakes

Car Repair Insurance Cost

Car repair insurance (or an extended warranty) costs vary from person to person and from vehicle to vehicle, as well as from insurer to insurer, policy to policy, and from company to company. The annual car repair insurance cost typically varies between $30 and $100. A deductible of $100, $250, or $300 will be applied if you make use of it. If you’re looking at a hefty repair bill, it can end up saving you a lot of cash. There could be a price difference between a three-year plan from one provider and a five-year plan from another. A deductible is the portion of a claim that you are responsible for paying before your mechanical breakdown insurance kicks in. If you file a claim with your car insurer for $1,000 in repairs and your deductible is $250, the insurer will reimburse you $750.

Car Repair Insurance Company

Below are the various known car repair insurance companies:

#1. Olive

Unlike many other organizations, Olive doesn’t make prospective clients wait 30 days or more before they may start using the service. On the other hand, Olive makes it plain that accidents, theft, or vandalism are not covered, nor are failures in mechanical parts. Olive provides Powertrain, Powertrain Plus, and Complete Care as its three protection options. Internally lubricated engine components, as well as the fuel system, oil distribution system, timing system, valves, and water pump, are all protected under the Powertrain plan. Additional parts, such as the serpentine belt tensioner, are protected by upgrading to Powertrain Plus. A thermostat, turbocharger/supercharger assembly (if equipped), and sophisticated valve timing systems are included in the Complete Care plan.

#2. ForeverCar

ForeverCar became successful through alliances with well-known financial institutions and car repair insurance company or providers like Liberty Mutual and SafeAuto. There are three levels of coverage and perks for both new and existing clients, all at incredibly inexpensive costs. The deductible and waiting time options available to ForeverCar clients range from zero dollars and zero miles to several hundred miles and several months. ForeverCar users get perks including 24/7 roadside assistance, travel interruption compensation, and rental car coverage in addition to a customizable deductible and waiting period. Unfortunately, your preferred auto repair shop could not be on the company’s list of permitted vendors. In the event of a breakdown or other difficulty, however, the customer is not completely out of luck during the waiting period because the corporation provides roadside assistance and other perks.

#3. CarShield

CarShield is a top extended car repair insurance company due to its flexible payment plans, broad coverage, and repair center selection. The company offers ATV and motorcycle insurance options and more comprehensive protection. CarShield offers plenty of coverage options and great benefits like 24/7 emergency roadside assistance, travel interruption compensation, and rental car reimbursement with all of its plans. Before filing a claim, CarShield customers must wait 500 miles or 20 days. The waiting period ensures that the company won’t address pre-warranty vehicle issues. However, most policyholders have had no trouble making claims, and the business makes it clear what’s covered. CarShield is easy to cancel after 30 days, and you’ll get a complete refund.

#4. Endurance

Endurance is a top direct warranty and extended service contract supplier. This means the car repair insurance business does not outsource policy servicing or claims processing. Endurance is better because this isn’t typical in business. Customer service testimonials praise the company’s timeliness and helpfulness during the estimate and claims phases. Also, endurance offers basic to comprehensive coverage, as well as specialist policies for high-mileage vehicles. Maintenance and repair plans are also offered by the company. Furthermore, each of the three tiers lists incorporated and excluded features. Some plans cover automotive changes and technology without a waiting time.

#5. Carchex

Extended warranty provider Carchex is regularly mentioned. Five layers of coverage for different autos give more granular options. Carchex offers various optional options to make its warranties more appealing and useful. Customers have a 30-day money-back guarantee and can choose any repair shop. Despite being public, Carchex follows the same techniques as warranties companies from decades before. Customers can seek broad information and apply for a price online, but they must phone the company and submit personal information for an exact quote. The news is bad. Good news: Carchex has some of the best customer service agents, and they seem eager to discuss cheaper or less comprehensive coverage options with you.

Numerous reviewed and reliable auto repair insurance companies exist. These organizations have ratings on five primary service and coverage areas. We considered customer service (based on our interactions with the companies) and feedback from existing customers, claim processing and payment speed, plan variety and affordability, company reliability (based on reputations), and service cost.

Car Repair Insurance For Older Cars

Auto repair insurance may reduce the expense of maintaining an older vehicle. Some consumers question the policy’s value due to their vehicle’s age and mileage. Getting insurance to fix an older car is easy. If your automobile breaks down while driving, call the warranty company’s roadside assistance hotline. Fast help is available 24/7. If you run out of gas, roadside assistance will help if you have the correct coverage. Although it’s usually not a minor issue, an extended warranty gives you peace of mind. Roadside help will tow your broken car to a mechanic. You can keep your trusted mechanic if you choose the shop. The choice is yours. Show the mechanic office your extended vehicle protection plan when your car arrives. Your mechanic will handle warranty documentation.

How Does Car Repair Insurance Work?

You must pay a premium to keep your automobile repair insurance policy current, just like with standard auto insurance. In the event your car requires a covered repair, you will be responsible for paying the deductible amount.

If your deductible is $250 and the cost to repair insured damage is $800, your insurer will pay only $550.

It’s worth mentioning that auto repair insurance is often only accessible to individuals with new vehicles or automobiles with exceptionally low mileage (such as 12,000 or 15,000 miles). After purchasing insurance, you may be able to extend your coverage for another year or up to a predetermined mileage maximum.

For instance, if your car is less than 15 months old and has fewer than 15,000 miles on it, you can purchase mechanical breakdown insurance from Geico. You can extend your policy for a further seven years or 100,000 miles.

Is Car Repair Insurance Worth It?

Car repair insurance could shield you from unforeseen expenses, like paying for a shattered air conditioning unit. Depending on the price of the repairs, the prospective benefit may be worthwhile to you. If your car developed a serious technical flaw, could you afford to fix it without financial assistance? If not, consider auto repair insurance once your vehicle’s warranty expires. Remember that if you file a claim, you will be responsible for paying a deductible.

Is There A Better Company Than CarShield?

Depending on the specifics of your insurance needs, CarShield may not be the best option. CarShield doesn’t provide any sort of maintenance coverage, but Endurance does, in addition to having slightly higher industry ratings and superior customer service. When compared to Endurance and CarShield, Olive provides a superior online experience.

Is CarShield A Sham?

The answer is no. CarShield is a reputable extended auto warranty provider, offering six vehicle service contracts. Based on the company’s reputation, coverage, cost, transparency, and customer experience, we rated CarShield 8.9 out of 10.0 in our assessment of the best vehicle warranty companies.

Will CarShield Replace The Transmission?

In a word, yes. Basic powertrain components including the engine and transmission are covered by all CarShield plans excluding the Aluminum plan. The powertrain is just one of the many parts covered by more extensive plans like the Diamond and Platinum contracts.

Does CarShield Require An Inspection?

If you want your vehicle repaired under warranty, you must get it inspected by a shop that has earned the ASE Blue Seal of Excellence. CarShield is in the business of servicing vehicles that are neither under nor out of a manufacturer’s warranty, so they can afford to be a little more lenient regarding complaints about sales promotion.

Car Repair Insurance: Is It Really Worth It?