How Auto Repair Insurance Works

Car insurance is a necessity to legally use your vehicle on the streets, but what about auto repair insurance? Unlike regular auto insurance, which covers collisions, auto repair insurance helps cover the cost of basic part failure due to regular wear and tear. This can run the gamut from basic belts and hoses to the engine as a whole.


When you buy a car, you’re often given the opportunity to receive a warranty, which typically lasts between five and ten years. This basically means that if you run into any problems, such as a dead battery, worn brake pads, and the like, the warranty will cover the cost entirely. Warranties, however, eventually end, while auto repair insurance will allow you to have the cost covered for as long as you have the insurance. Many people purchase auto repair insurance as a replacement for a warranty, though many things needs to be considered before you do this.

Auto repair insurance will typically cover the entire cost of the repair, a fact that might draw the ire of the mechanics working on your car. A lot of mechanics tend to exaggerate the problems, and often suggest repairs that aren’t you really necessary in an attempt to charge you more. Since auto repair insurance covers all or most of the of the cost of the repairs, mechanics have no reason to charge you more. Regardless, you should always discuss the repairs that are necessary with your mechanic to ensure you know exactly what’s being worked on. Remember, knowledge is your best weapon against expensive auto repairs.

There are different types of auto repair insurance available, though they typically fall under the categories of “bumper to bumper” and “a la carte.” Bumper to bumper typically covers the major components of a car, while a la carte options allow you to purchase insurance policies that only cover specific parts or systems in your vehicle. The type you choose should be determined by your budget and the relative health of your car.

Like most types of insurance, you can’t purchase auto repair insurance when a problem rears its ugly head; think of it as the auto insurance world’s version of a “pre-existing condition.” In addition, you still have the standard problems associated with insurance, such as long waiting times, difficult-to-deal-with insurance agencies, and deductibles. As such, when you consider purchasing auto repair insurance, you should do plenty of research, including assessing the health of your car, the frequency at which you use it, and your own personal financial situation. Be sure to always read the fine print and ask plenty of questions to cover all possible scenarios.

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Posted on June 25, 2012 at 9:00 AM