Car insurance is legally required in most states and protects us when we have a collision, theft or when natural disaster strikes.
However, car insurance won’t be there for us when the car’s engine or transmission malfunctions. Without a vehicle service contract (also known as an extended car warranty), we are stuck with huge repair bills that are difficult to pay.
Some car insurance companies in the U.S. car offer a car repair insurance add-on that can cover repairs. Here’s what you need to know about this type of add-on.
What does car repair insurance cover?
Car repair insurance, commonly known as Mechanical Breakdown insurance, is similar to extended car warranties for automobiles; however, car repair insurance must be sold by an insurance agent or licensed provider in order to be called an “insurance” product.
The components covered by car repair insurance can vary depending on the insurance provider. Ideally, car repair insurance should cover important vehicle components, such as:
- Air conditioner
- Fuel system
The provider should have a list of covered components that you can refer to. Doing the research before buying is necessary so that you can know ahead of time what you are covered for, but some companies make it hard to know exactly what you’re buying.
Be sure to review any policy exclusions. Some things that are usually not covered by car repair insurance include routine maintenance, components covered by the vehicle manufacturer, car recalls, and pre-existing issues.
Note: Mechanical Breakdown Insurance is the term used to refer to this type of contract in the state of California.
How does car repair insurance save drivers money?
Car repair insurance provides protection from unavoidable car repairs. The way it works is you pay a monthly premium in exchange for coverage when something goes wrong.
When your vehicle needs a repair, car repair insurance will pay the amount of the bill for any covered repairs, minus the deductible. The deductible is the portion that you contribute out of pocket for repairs.
How much the deductible is will depend on your plan. Depending on the deductible, smaller repairs may not be covered. However, if a larger repair is needed, the deductible is much more manageable than what the actual cost of the repair would be.
How can I buy car repair insurance?
To purchase a car repair insurance plan, it’s a good idea to start by checking with your regular car insurance provider to see if they offer it. You can also check with your state department of insurance to see what is available to you.
Qualifications for car repair insurance may vary based on factors such as your vehicle’s make, age and mileage.
What if I can’t get car repair insurance?
Car repair insurance may not be available to you either due to your car’s high mileage or the state where you live. However, there are alternatives for you to consider that can help make owning your vehicle as worry-free as possible, such as a vehicle service contract.
What’s the difference between an extended car warranty and a vehicle service contract?
A vehicle service contract and an extended car warranty are terms that are used interchangeably. Extended car warranty is the most commonly used term when referring to a car repair protection plan that covers your car repairs.
These plans differ from car repair insurance in that they are not sold by an insurance company, but they work in much the same way — by covering the repair bill for vehicle issues, leaving you with just a small deductible to pay and a lot of peace of mind.
Read our recent blog to learn more about what is a vehicle service contract.
Here’s a quick review of the various terms:
A manufacturer’s warranty (also known as a “factory warranty”) is a promise from the car manufacturer to help pay for parts or repairs during a specified period of time.
A vehicle service contract (VSC) is a written agreement between the consumer and an entity that promises to pay for covered vehicle repairs within a stated period of time/mileage
An extended car warranty is the common way to refer to a vehicle service contract.
A car repair insurance add-on is similar to a VSC but the difference is that it’s sold through an insurance company.
|Car repair insurance||Vehicle service contract|
|Sold by a licensed insurance company or agent, often alongside regular car insurance||yes||no|
|Generally available for older vehicles and for longer terms||no||yes|
|Covers vehicle components that break down and can save you money on large repair bills||yes||yes|
|Covers vehicle collisions and theft||no||no|
What extras should you look for when choosing car repair coverage?
Major repairs to the vehicle’s transmission, engine, or suspension can take several days. The repair shop may also have to wait for parts to perform the repairs. This can leave you without transportation to attend work and cause a huge interruption in your daily routine.
It’s a good idea to look for a plan that covers or reimburses the expense of renting a vehicle or other transportation to get around while yours is being repaired. A great plan will even include trip protection to cover lodging and meals when a vehicle issue occurs while you’re away from home.
Vehicle Repair Protection provides the best deal on costly repairs
Vehicle Repair Protection can help cover you when your vehicle breaks down unexpectedly. It’s a way to insure yourself against expensive repair bills that can stress you out and stretch your financial resources. You can choose to invest in it on your own time and your own terms, and you won’t have to deal with car dealerships or a car insurance company that may force you to go to mechanics of their choice. You choose the repair shop, Uproar.car pays the bill directly.
Uproar.car has created vehicle breakdown coverage that is simple, trustworthy and affordable. Transforming the extended car warranty marketplace through technology and transparency, Uproar.car offers a full suite of worry-free, no haggle car care plans through low-cost, 100% online, monthly subscriptions that drivers can sign up for in less than five minutes. Get an instant quote today!