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If you're in an accident, your car insurance policy may cover the damage. When it comes to routine maintenance, though, you are on your own. This is where mechanical breakdown insurance, often known as car repair insurance, comes in.

What is car repair insurance?

Car repair insurance will assist in repairing your car if any of its major components fail, perhaps saving you a significant amount of money in the long run. However, it does not cover everything, isn't accessible on every car, and may conflict with existing coverage.

Here's how to figure out if you need car repair insurance.

What you should know about car repair insurance before your take it:

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Coverage limits of car repair insurance

If you are looking for car repair insurance companies, look no further than The General and Mercury Insurance. These two companies sell car repair insurance alongside standard auto insurance. Although coverage varies by insurance, most policies will cover repairs to the following sections of your car:

Car repair insurance, like other types of auto insurance, usually has a deductible that you must pay out of cash before your insurance kicks in. The deductible ranges from $100 to $300. As a result, paying for minor repairs is of little or no use, and it will only cover a percentage of larger ones. The average cost of a car repair, according to AAA, is $500 to $600, though some can be much more.

What is not covered by car repair insurance?

Again, this varies by insurer and policy, but car repair insurance generally does not cover:

Repairs covered by an extended warranty, if you have one, could potentially be excluded from your coverage. If your car requires repairs due to a recall, the manufacturer will cover the costs, not your auto repair policy.

Eligibility of your car for car repair insurance

In general, car repair insurance is only sold by insurance providers for cars that fulfill specified age and mileage requirements. You might be able to get a policy just if you're buying a car that's relatively new and hasn't been driven very far.

If your car reaches a specific age or mileage, the insurer may refuse to renew your policy.

So if you are looking for car repair insurance for older cars, keep the above point in mind.

For example, The General only sells insurance for cars that are less than 15 months old and have less than 15,000 miles on them. The policy can be renewed for up to seven years or 100,000 miles after that, whichever comes first. Manufacturer warranties, like auto repair insurance, rarely cover routine maintenance or normal wear and tear.

Is car repair insurance worth it?

Car repair insurance costs vary depending on the car's model and age, the insurer, the policy's specific benefits, and other considerations. The average annual salary is between $30 and $100. You'll have to pay a deductible, which may be $100, $250, or $300 if you ever need to use it. Is it, therefore, worthwhile to purchase this insurance?

A shield from unexpected expenses

Car repair insurance could shield you from unforeseen costs, such as replacing a broken air conditioner. Depending on the cost of what breaks, the prospective value might be worth it for you.

The cost of repairing a car's air conditioner, for example, might range from $100 to $1,000. Other things, on the other hand, maybe more costly. A transmission replacement might cost anything between $1,500 and $5,000.

On the one hand, if you have a large repair cost, it could save you a lot of money.

However, what is the chances of such happening? Today, cars are more dependable than they were in the past, and if properly maintained, they may go thousands of miles without requiring major repairs. In many cases, manufacturer warranties cover more items and last longer.

No manufacturer warranty, go for car repair insurance

If your car requires an expensive repair between the time your manufacturer warranty expires (say, after three or five years) and your car repair insurance can no longer be renewed, purchasing a car repair coverage may be advantageous (say, at seven years).

When you buy your car, start saving money into an emergency fund that you may use to pay for any necessary repairs after the manufacturer's warranty expires. If your emergency fund isn't needed for car repairs, it could be put to good use elsewhere.

If you bought an extended warranty from your auto dealer, it may overlap with car repair insurance and cover many of the same repairs after the manufacturer's original warranty expires.

Could you afford to pay for a significant technical problem with your car out of pocket? If your car is no longer under warranty, car repair insurance can be worth it for you. If you file a claim, keep in mind that you will be responsible for a deductible.

Points to ponder wrt car repair insurance

Before acquiring car repair insurance coverage, keep the following points in mind:

Is it possible for you to select your repair shop? Car insurance companies usually require you to take your car to a licensed repair shop. However, some may limit the establishments you can visit. Before you purchase coverage, inquire about where you may get your car fixed.

Is there anything extra included in a car repair insurance policy? Roadside assistance, trip cancellation coverage, and rental car insurance may be included in some policies.

Is it possible to transfer coverage to a new owner? Some car repair insurance policies allow you to transfer coverage to the new owner if you sell or give your car to someone else.

Do you have insurance already? New car insurance or extended insurance may already provide coverage. If this is the case, purchasing car repair insurance would be an unnecessary coverage overlap.

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What to remember about car repair insurance?

Car repair insurance appears to be reasonably priced on the surface.

However, it may just duplicate coverage provided by your manufacturer's warranty for the first few years you own your automobile. You may expire before you ever have to deal with a big repair issue, especially if you keep your car properly. It's a good idea to consider these things when determining whether to acquire a policy:

You probably don't need car repair insurance if you already have a new car or an extended warranty. While the specifics of what's covered will vary depending on your warranty or car repair insurance coverage, most items are covered.

A new car warranty is almost always included when you buy a new car.

In most cases, guarantee transfers to new owners, so even if you buy a used automobile, it may still be covered by the manufacturer's warranty. If you're not sure if a warranty covers your car, check the owner's manual for details. You can also call the dealership where you bought the car. If you purchased the car through a private sale, you should contact the manufacturer. You'll need your vehicle identification number (VIN), which can be found etched on the driver's side dashboard, driver's side door jamb, or on sale documents.

It will be more difficult to determine if your car has an extended warranty through a third-party organization if it is not under a manufacturer's guarantee. No warranty documentation was provided with the sale.

Damage from car accidents is not covered by car repair insurance or car warranties. Accidents, vandalism, fire, flood, hail, falling objects, and animal collisions will all be covered if you add collision and comprehensive insurance to your auto insurance policy. Car theft is also covered under comprehensive coverage.

You can file a claim against someone else's liability insurance, sue them, or utilize your collision insurance if someone else is at fault in a car accident.

Damage from car accidents is not covered by car repair insurance or car warranties. The collision and comprehensive section of your auto insurance coverage cover issues such as car accidents and damage caused by theft, vandalism, fire, flood, hail, falling objects, and animal collisions.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with

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