Car Repair Insurance – Do You Need One?
When you buy a new car, or a later model car, you typically have a warranty that is left from the manufacturer and there is no need for an extra policy like car repair insurance. In most cases, that warranty is going to be for anywhere between 3-5 years. However, what happens if you drive an older car, or a car that has no warranty left on it? What are your options?
What Can Car Repair Insurance Cover You For?
Having this extra coverage is going to allow you to drive your car and feel secure knowing that your car is covered in the case of a mechanical breakdown. Almost all types of mechanical parts are going to be covered by this type of a policy.
Specific items that are covered by car repair insurance include, but are not limited to:
-Engine
-Brakes
-A/C
-Steering
-Transmission
A typical engine repair can cost upwards of 3,000 dollars or more and the same goes with your transmission. Even a simple brake job can cost you 500 dollars or more if you have to take it to a shop to get it done.
What Are My Costs?
As with any insurance policy, there are going to be costs associated with having car repair insurance. There is typically a deductible that can range anywhere from 50-300 dollars. This means that you are responsible for any amount that is below or at your deductible amount.
There are also other fees and taxes, and some policies come with claim fees as well. It is important to watch the fine print of your policy to determine if this is going to be a good idea for you.
Is Car Repair Insurance Right For Me?
Car repair insurance is typically reserved for cars that are over 4 years old, or have more than 50,000 miles on it. If you have an extended warranty on the car, you shouldn’t need this extra policy. Keep in mind the age and condition of your car. It could be cheaper and easier to simply junk your car if need be should it continually need to be repaired. A car isn’t very useful when you are paying to keep it in the shop.
It should also be noted that this type of insurance is not a replacement for standard auto coverage that you must have to drive your car. This is a separate policy that gives you extra coverage in case of a breakdown. If you were to ever have an accident, you would need to have liability insurance instead.
Having car repair insurance is only appropriate if you want to protect yourself against your engine going bad and having to pay a huge bill.
Car Insurance For New Drivers – Tips On Getting A Better Deal
Shopping for car insurance can be a challenge and if you are a new driver, it can be quite costly. New drivers are subjected to higher insurance premiums because of their lack of experience on the road. This makes them a bigger risk and increases their rates.
Acquiring car insurance for new drivers takes patience, but if you are diligent and remain focused on the task you can find the right car insurance at a price that will not break your budget.
How do I go about finding the right car insurance for new drivers?
The process of purchasing car insurance for new drivers begins with research. You need to understand the basics behind purchasing insurance and verify if there are any special conditions involved with the purchase. Under normal circumstances, the only requirements are a valid driver’s license and a clean driving record. It is also recommended that you take other factors in mind when buying car insurance for new drivers. For example, the type of car you drive will have a direct impact on the quote you are given. This means a new driver who has a sports car with a V8 engine will undoubtedly pay more than a new driver who has a sedan or coupe.
Something else that all car insurance providers take into consideration when calculating the rate for car insurance for new drivers is age. Shopping for car insurance for new drivers applies to teenagers more than any other age group because they represent the largest number of new motorists on the road. However, anyone with less than five years driving experience is considered new and the insurance companies will act accordingly. This means most drivers under the age of 25 will unfortunately find themselves shelling out more money per month than drivers over the age of 25. Luckily, this can change. If the new driver has not been involved in any accidents after the first five years, most insurance companies will begin reducing their rates.
Don’t let this discourage you, there are other ways to receive lower insurance quotes, regardless of your age.
- Defensive Driving Courses
- Driver Instruction Training
- Auto Safety Classes
All of these programs are designed to make the new and young driver more aware of the dangers on the road. Insurance companies will offer discounts if they feel you are a safe driver.
What about premiums for car insurance for new drivers?
Now, keeping in mind that all new and young drivers are different with separate circumstances, it is virtually impossible to provide a ‘general premium average’. However, you can easily compare price points by visiting insurance companies online and completing a quick price comparison checklist to get an overview. It is always a good idea to contact many different insurance companies before settling on any one quote so you can accomplish two goals at one time.
Remember, do not feel overwhelmed or forced into accepting any quotes until you have completed your research. Comparison shopping is the best way to ensure that you have the correct amount of coverage and the best price.
Car Breakdown Insurance – Should You Get One?
If you are driving an older car, you may want to look into car breakdown insurance. This type of insurance will cover many different parts of your car depending on what level of insurance you get. You can cover as much, or as little, as you would like.
Car breakdown insurance comes in various levels that cover different aspects of your car. For example, the lowest level would be coverage simply for your powertrain. This would cover your engine or transmission in case of a breakdown.
What can I cover with car breakdown insurance?
The highest level of car breakdown insurance coverage would include everything from electrical components, fuel system, steering and anything else that would not be considered routine maintenance.
What is considered routine maintenance? Things like new tires, changing the brakes or getting new windshield wipers would not be covered under the policy. However, these repairs are small compared to your engine going and costing you thousands of dollars.
The maximum policy that can be purchased is usually coverage good for 100,000 miles or six years. Car repair insurance is paid up front, so you should be ready to swallow that cost as a lump sum as opposed to paying it in installments like regular insurance.
Also be aware that this is a supplemental policy that does not take the place of liability insurance that is mandatory for driving.
Can car breakdown insurance be transferred?
One of the great things about your policy is that it can be transferred to a new buyer. For example, if you had a year and 10,000 miles left on your policy, that can be given to the new buyer of the car. A buyer of an older model car might feel better about doing the deal if he knows that the car has some protection in case of a breakdown.
A policyholder who does not transfer the insurance upon sale of a covered vehicle can ask for a refund of any portion of the insurance that was not used. This makes getting a policy a win-win situation because you can walk away from any part of the policy that isn’t used.
Car breakdown insurance is a good way to cover yourself in the event that your warranty is up, or you buy an older car with no warranty. It is always a good thing to cover yourself when buying a car because even the smallest of repairs can be expensive if you have to pay for it out of your own pocket.
Rental Car Insurance – Is It Worth It?
There are a number of excess costs that are associated with standard car rentals in case you have an accident. The typical costs involved with purchasing extras rental car insurance to reduce excess are another thing that consumers will try to weigh the cost and usefulness of.
One of the major excess costs accosted with renting a car and having an accident is the loss of use that many companies charge for every day that a car is out of commission. This is their cost that they charge for potential money they lose for every day that the car is not able to be rented out.
Can rental insurance cover for loss of use?
The real way that companies get one over on those unfortunate enough to have an accident is the fact that they don’t usually release information about how much that is and if the car actually caused a lack of use. The loophole is that the information on fleets is confidential and can make for a real headache and some serious excess fees. This is also the case because many credit cards that cover rental car insurance do not cover the “loss of use” fee that many companies charge after an accident.
The paradoxical thing when it comes to some car insurance coverage is that you pretty much have to go with one or another. If you get coverage through a credit card you have to deny any extra coverage from the rental company. But, each type of insurance covers different things. This is why it is important to make sure you are knowledgeable about the policies you will be operating under.
Can rental car insurance save money?
Rental car insurance can reduce the damage costs and help cover what your standard policy does not. But exactly how much rental car insurance can reduce damage costs in case of an accident depends on your insurance. Many experts say that purchasing extra insurance is just a way for insurance companies to line their pockets, but in some cases it can be worth it just for the added peace of mind. It is important to make sure you know what is and is not coverage by any additional insurance that you purchase.
If you are intimately knowledgeable about your personal insurance coverage you can know without a doubt that you are not paying for something that is already covered. But, if you are like most people you may not have the ins and outs of your insurance memorized. An alternative would be looking up exactly what your coverage can do in the case of a rental. If you are having trouble finding this information you can contact your insurance agent. If they are a good agent and want your business they will be able to provide all of this information for you quite quickly and easily.
