Wednesday, 28 September 2011
Auto Repair Insurance Good Way To Save Money
If you’re worried about your car breaking down while driving it, most people opt to join an organization such as the AAA or something similar. These types of organizations can help out in a number of situations, such as running out of gas, a dead battery, locking the keys in the car, and other types of minor breakdowns.
However, you can also get insurance that covers you for breakdowns. This isn’t a warranty or guarantee, it’s actual insurance that kicks in when your car decides to pack it in. It’s known as mechanical breakdown insurance and it covers the cost of repairs to your vehicle.
This type of insurance is purchased separately from your regular auto insurance policy as it covers different types of things. It can usually be bought through your auto dealership, insurance company, or a financial institution which deals in auto financing.
The plans don’t cover the wear and tear on the vehicle or the regular maintenance procedures. This means things such as tires, windshield wipers, and brakes aren’t covered. The policies are an ideal way to cover yourself once your vehicle’s warranty has expired or as supplemental insurance.
Some of the policies cover repairs for a certain time period or amount of miles. You can insure more parts of the vehicle with additional coverage. For instance, you may want to pay a higher premium to cover things such as air conditioning, the fuel system, and steering, etc.
Most of the policies also cover things such as rental car coverage and towing expenses. The cost of the insurance is based on the type automobile, the length of the policy or miles covered as well as the level of coverage chosen. Some of them also have deductibles to help keep the premiums down.
In addition, if you have purchased a policy and decide to sell your car the coverage can be transferred to the new owner. This could make it easier to sell the car. If the car is sold and the coverage hasn’t expired you are also eligible for a refund for the unused portion.
The policies vary when it comes to repairs. Some plans allow you to have your auto repaired by any licensed mechanic while others will require you to have the repairs done by a specific mechanic or at a specific auto repair shop. Most of the plans also pay the mechanic directly and cover parts and labor and don’t have any effect on your regular auto insurance costs as they’re not related at all.
According to an article by insurance.com, When looking into this type of insurance it’s a good idea to see how it differs from the manufacturer's warranty and find out exactly what type of repairs are covered and which ones aren’t. You need to find out if you can have the car repaired anywhere or if there is a network of mechanics and you need to visit one of those.
In a way, the policies are sort of comparable to health insurance plans for automobiles.
