Car repair insurance is very similar to new vehicle warranties, except it is strictly for used cars. Depending on the repair coverage plan, the insurance company will pay for the repairs/replacement of parts on used vehicles. Cheap auto insurance quotes for repair plans should be obtained prior to finalizing a used car purchase, as plans vary from company to company. This type of coverage can save a lot of headaches and money in the event of a breakdown. There are two general car repair insurance plans offered by most companies: Breakdown coverage and Wear and Tear coverage. Not all insurance companies will offer both as a package plan, so it is advisable to shop around to get the cheapest car repair insurance comparisons for the best deal.
Used cars are notorious for needing repairs at some point quicker than new ones. Consequently, taking a little time before slapping down money on a used car to start a cheap insurance quotes comparison worksheet will be well worth it in the end. A decision will need to be made whether to get one or both types of car repair insurance. The Breakdown plans apply to vehicle parts that are prone to breakage and only these parts will the insurance company cover. Whereas the Wear and Tear plans focus on parts that can wear out over time. Many companies also offer add-ons and specialty plans such as Engine and/or Transition coverage, but these can get costly and confusing. For example, an Engine Plan may not cover the repair/replacement of the radiator because it is not actually part of the engine block. Therefore, depending on the age and projected usage of the used vehicle, it is best to evaluate the plans being offered vs. the cost from the quotes comparison worksheet.
Extended warranties and car repair insurance may essentially be somewhat the same in principal, but there are some huge differences between the two. Extended warranties are exactly what they say they are, in that they extend the coverage period of the manufacturer’s warranty that was included with the cost of a new car. During the time a vehicle is covered by the warranty and extended warranty, the manufacturer will cover the cost of repairs and replacements. Under a car repair insurance policy, the insurance company pays for this, not the manufacturer. Also, this insurance is for pre-owned vehicles which are known to usually have mechanical issues. So, getting cheap auto insurance quotes to get the best deal can save thousands of dollars in the long run by not having to pay for expensive auto repairs.
For anyone buying a pre-owned vehicle, especially one without a transferable manufacturer’s or extended warranty, this additional insurance is just as important as regular auto insurance. Be sure to create a cheap insurance quotes comparison worksheet so an informed decision on a car repair insurance policy can be made as to the specific needs of the used vehicle to be purchased. Also, a good place to start is to inquire with the dealer for an insurance company they recommend and possibly work with if they have an in-house shop.