Keeping your car well-maintained and taking care of any major fixes as they come up is much easier when you have a great vehicle service contract (also known as extended car warranties) to have your back.
The key to staying on top of your finances and reducing car expenses is planning ahead for anything that can go wrong. Here’s what to remember when considering coverage for car repairs, especially in times of a slowed down economy.
Owning a car costs a lot of money
If the price of the car, the financing costs, taxes, car insurance, licensing and registration hurt your wallet, keep in mind you still have to add the costs of car maintenance and car repairs!
From spark plug replacements to oil changes, taking care of your car maintenance each year adds up. According to AAA, car maintenance today is around $913.50 a year, with tires alone being $147.
When it comes to car repairs, just one single sudden repair can cost you thousands of dollars. Here are five of the 25 of the most expensive car repairs that yahoo finance gathered in late 2020.
- Engine rebuild (around $4,000)
- Engine block repair (around $3,500)
- Head gasket replacement (around $1,500)
- Transmission replacement (around $5,000)
- Axle Shaft replacement (around $1,500)
Sudden car expenses can hurt your budget
When you’re low on money, you have to be especially careful on how you spend it.
You have to balance your needs, wants and goals. To do so, a personal budget helps you track your money in vs. money out and you can see clearly how you’re spending your money and what to adjust.
Car repair expenses usually show up as sudden surprises in your spending habits, and they will throw off your budget. Having a great car repair protection plan prevents this from happening. Since you’re paying a low-monthly payment each month to cover repairs, you’re making sure you won’t come across a surprise, inconvenient and costly expense.
Check out our buyer’s guide article on how to buy extended car warranty and if you should buy an extended warranty.
Build more emergency savings when car repairs are covered
An emergency savings fund is money that you keep aside in case there’s an unexpected event. Whether it’s a medical expense or something to fix in your house, emergency repairs can occur anytime.
An emergency savings fund can also be great help if you ever lose your job or if you’re trying to pay existing debt.
When your car repairs are covered, that’s one fewer emergency repair to worry about. You won’t have to dip into your savings in case of a car breakdown and can let your money grow over time.
Consider a new kind of extended car warranty to cover your repairs
Vehicle Repair Protection is a new kind of extended car warranty that offers coverage for expensive car repairs on a low monthly price. Included with VRP are free membership perks, like 24-hour roadside assistance, Car Cash benefits to use at thousands of car service providers and discounts at all types of establishments. When something goes wrong with your car, you simply take the car to a repair shop near you and begin the claim process through the Uproar.car app.
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!