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Should you get repair car insurance?

By Edited Oct 27, 2016 0 0

Car insurance is a very common term and is known to everyone but most people are not aware of the term 'repair car insurance'. In a normal car insurance policy, the car is covered against theft or any type of damage to the car. But this car insurance doesn't cover the usual wear and tear, maintenance and other repair costs. This is where repair car insurance policy comes in.


When you buy a new car, it comes with a warranty period of a certain duration. During this period, your car is covered for most of the faults like electrical failure, mechanical failures etc. Usually this warranty is for 3 to 4 years and has a mileage limitation as well. This limitations is anywhere between 36,000 to 48,000 miles. Also, this warranty doesn't cover any accident related costs. But the fact is that you will hardly ever use this warranty since most of the problems start cropping up only 3 to 4 years after buying a car. This is when these failures start showing up and car needs more maintenance.


This is where a car repair insurance policy becomes useful. Very few people actually buy this kind of policy since they are not even aware that it exists. Finally they end up paying the repair costs from their own pockets. You can think of a car repair insurance policy as an extended warranty of your car. It will also cover costs of car repair which your company warranty doesn't cover.


Buying a repair car insurance policy is similar to buying any other insurance policy. This policy is a contract between the person buying the policy and the insurance company where the person pays premium according to the coverage required and the company bears the cost of car breakdown as per agreed terms and conditions.


There are various types of coverage available in this policy. The standard repair policy covers only the cost of breakdown of the car. It doesn't cover the wear and tear coverage and it is generally the cheapest option. There is another option which is called bumper to bumper coverage. This policy will cover all expenses including car breakdown, maintenance, electrical failures etc. This is the costliest option available.


While shopping for a repair car insurance policy, you should make sure that you do some research. You should check out various options either online or with direct insurance brokers to get the best deals. If the mileage on the car is more, the policy will be more expensive. Usually you can get repair car insurance till your car reaches 100,000 miles. Also lower deductible means higher premium. Check if the repair car insurance policy is transferable. It can increase the value of your car in case you want to sell it. Do some research online before finalizing the insurance policy. A small amount invested in this policy can save lots of money in unexpected damages and will give you a peace of mind as well.

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