If you’ve purchased a vehicle before, you’re probably familiar with extended warranties. Until your warranty expires, any repairs you need on your car should be covered. However, once your warranty is over, you’re on the hook for any repairs your car needs going forward. Repair costs can add up quickly, so if you’re worried about large expenses after your warranty ends, consider car repair insurance.

What Does Car Repair Insurance Cover?

Car repair insurance, also known as mechanical breakdown insurance, pays for repairs if your car has a mechanical or electrical problems. That can include problems with the following: 

  • Air conditioning 
  • Fuel systems 
  • Cooling systems 
  • Steering components 
  • Electric systems 
  • Computer systems 
  • Transmission 
  • Engine 
  • Exhaust 

In general, car repair insurance doesn’t cover:  

  • Routine maintenance and upkeep, such as oil changes, tune-ups, and tire rotations 
  • Damages related to improper maintenance 
  • Cosmetic wear and tear 
  • Damages incurred before you purchased the vehicle 
  • Rust or corrosion 
  • Typical wear-and-tear services 
  • Damage from an accident (that’s covered by your collision, comprehensive, or liability insurance)

Is Car Repair Insurance Worth It?

There are multiple benefits to car repair insurance, especially for drivers who lack knowledge about repairs and want to leave it up to the pros. In addition, repair insurance gives you peace of mind over hefty expenses and removes the fear of haggling over costs 

However, car repair insurance isn’t a one-size-fits-all policy. There are some questions you should ask yourself before deciding if this policy is right for you, including:  

  • Are you already covered? If you just purchased your car, your warranty is probably still in effect and will cover most of your repairs. Since car repair insurance covers a lot of similar ground as an extended warranty, you probably don’t need to purchase both.   
  • Can you select the repair shop? Most insurers will allow you to choose your preferred repair shop, but some carriers will only let you visit one of their approved partners.   
  • How old is your car? You might want to consider car repair insurance as your car gets older, or if you buy a used car with a high mileage (if your insurer allows it). However, if your car is brand new, car repair insurance might be unnecessary. Car repair insurance covers issues such as engine, electric, and fuel problems that don’t usually arise until around seven years, or 100,000 miles, into the car’s life. 
  • Does the policy include extra benefits? Some car repair insurance policies include roadside assistance, rental reimbursement coverage, and trip reimbursement coverage as added benefits. 
  • Is the coverage transferable? If you plan on selling your car in the future, some policies let you transfer your coverage to the new owner.  
  • Is your car eligible for car repair insurance? Some insurers set strict age and mileage guidelines when determining who’s eligible for car repair insurance. You may not be eligible for a policy if you have an old car that’s surpassed the designated mileage limit. If you can secure a policy, you might not be able to renew it as your car ages. 

Alternatives to Car Repair Insurance

If you’re unable to secure car repair insurance, you can still ease your anxiety about any upcoming repairs by putting aside money for the future. Set aside an emergency car fund that you only use for unexpected car repairs. You can also purchase an extended warranty from your car’s manufacturer and slowly pay it off by bundling it into your car payments. Learn how to create a budget and stick to it by visiting our blog.  

If you’re looking for a quality coverage plan for a new or used vehicle, you’ve come to the right place!  For over 60 years, The General has offered affordable rates, prime customer service, flexible payment options, and more to our customers. You can get a free insurance quote in under two minutes and secure insurance in 12.