Today, cars have become basic requirement of life. Buying a car also comes with liabilities such as operating and repair costs. The car repair costs have been on a rise, even a simple bump can prove costly when repaired. What to do then? Apart from driving abit more safely you can buy a cap repair insurance. It is useful to get car repair insurance in order to cut down the costs associated with routine and accidental car repairs. Car repair insurance is similar to other types of insurances but there are certain aspects of consideration before putting money in this insurance policy.
Car repair insurance is a responsible agreement between car owners and insurance company covering all types of repair expenses from the time of taking insurance.
Car Repair Insurance Benefits
Car repair is directly related to the mend up procedure of car breakdown. There are variations in the car insurance policies depending upon the type of damage done to the car. In some cases, there is coverage for only broken or damaged parts of the car. On the other hand, some insurance companies provide coverage for transmission, engine and other greased/oiled parts. Here is detailed information about the reasons to take car repair insurance and benefits associated with it.
While unfortunate, its facts that many accidents occur on roads everyday and anyone can get involved with them. Irrespective of the serious crash or small scratch, car repair insurance can really reduce the shock and stresses of paying up lot of money to repair your car.. Some policies also cover accidents caused due to natural causes such as, falling tree branches on the vehicle and damage caused by water.
Longevity of the Car’s Life
Every car has a life and not all can afford a new car very often. Thus un case of breakdown, the only option left is repair.. Auto repair insurance can come forth as a best possible solution for managing the high costs associated with the total car repair. Car owners need not to be worried about the time and money required to carry out the vehicle repairs. At the same time, car repair insurance companies focus on providing premium quality car repairs with long term solutions.
Car repair insurance is known for the inclusive coverage offered by the insurance companies. There are certain supplementary car repair insurance benefits including vehicle loaning procedure and gap insurance. Gap insurance is required to cover the extra costs of substituting a new car for instance dealer registration or delivery. Safe drivers can be benefitted with insurance discount negotiations. They just need to be out of high risk zone with a decent driving record.
Types of Car Repair Insurance
However, there are various types of car repair insurances but insurance companies majorly focus upon three types of car repair insurance. These three types of insurance can be defined as follows:-
Collision Insurance : Collision insurance comes into existence when insured car collides with any other vehicle or an object. Moreover, there is coverage against the damages due to vehicle roll over. Collision is one of the most common occurrences in car accidents and insurance companies provide broadest damage range under the policy guidelines of this insurance. Collision coverage is most demanded type of insurance and in some states; this is against the law to drive without having collision repair insurance.
Comprehensive Car Repair Insurance : This type of insurance covers all the damages occurring under rudimentary circumstances. These damages are not caused by another driver or car owner. These damages can be incurred by due to, theft, hail, animal collision, water, fire, wind or vandalism. This insurance is not obligatory in all the states and car owners can purchase it as per their requirement. At the same time, car owners prefer this insurance over collision insurance due to more frequency of such damages.
Rental Reimbursement Car Insurance : This insurance is not for the benefit of car owners but for rental car vendors. Car driver should have this insurance if they need to take out a vehicle on rent. This insurance covers all types of damages occurring to the car during the car driver’s possession over the car. It relieves car rental companies from stresses because rental reimbursement car insurance works as a specification of reassurance for the safety of their rented car.
Factors determining cost of car repair insurance
Car repair insurance typically can take care of all the car maintenance expenses but car owners should know all the aspects of insurance policy. Some insurance companies are concerned about the age of the cars and there can be variations in the plans depending upon it. Also, initially various car insurance companies offer lower deductibles at around $50. This deductible amount increases with the claims made by the car owners. Therefore, car owners should carefully read the policy instructions before committing to the insurance company.
Similar to health insurance, car repair insurance depends a lot on the condition of the care. Some key parameters which determine the cost of car repair insurance are:
- Age of the care: Older the age, more premium will have to shelled out to cover the repairs
- Usage : how many miles can also be used to determine the premiums (though not always). More the miles more the premium
- General condition of the car : If you have kept your car in food condition with proper servicing etc. they you are likely to be rewarded with lower premium costs
- Others : Deductibles, surcharges, taxes are extra.
Even with such variables, car repair insurance proves to be a great investment in most cases as a simple engine overhaul can cost as much as $1,000-$2,000, car repair insurance can save this money for you.
Top Car Repair Insurance Companies
There are many car repair insurance companies with user-oriented insurance policies but car owners should look for companies providing coverage against the extended warranty and mechanical breakdown. There are three major companies providing greater coverage and their plans are explained below.
Warranty Direct : Warranty Direct is known for providing extended warranties on brand new and second hand cars. They are monetarily reasonable with sufficient reserves required to carry out the claim payments. Car owners can definitely rely upon their paying claims and insurance policies.
Carchex : Carchex is also known for extended warranty provision with well-groomed back up. Their services are reliable and car owners can bet on their fast claim processing. Various TV programs have featured them as a financially accountable insurance company.
Allstate Insurance Company : Allstate insurance company offers mechanical breakdown car repair insurance policies which are highly regarded due to their efficient payment procedures and claim handling. They provide round the clock customer care services with healthy cash reserves in their stock.
In most of the cases car repair insurance is a great investment as it repays itself sooner or later and relieves you from tension of these financial costs when they actually occur. Get it from a decent firm with good track record of settling claims.