Auto Repair Insurance Facilitates Vehicle Maintenance

You must have come across the term 'auto repair insurance', when you were searching for an insurance to cover your vehicle. You might have thought that it was no different than conventional auto insurance. Well, you were mistaken not to have looked at it twice.

What is auto repair insurance?

Auto repair insurance is not essentially similar to the conventional auto insurance policies. As the name suggests, it pays for the regular wear and tear of your car and for the mechanical repairs. Standard auto insurance policies only provide financial assistance when your vehicle meets with an accident, whereas auto repair insurance helps you out, in case your car breaks down. It thus pays for the regular maintenance costs like the scratches, dents or mechanical failures etc. Auto repair insurance will not compensate you if your vehicle gets damaged during collision, natural disasters or acts of vandalism. Auto repair insurance thus acts as an extended warranty for your vehicle, after the term of manufacturer warranty gets over. It is actually a service contract between the vehicle owner and the insurer, whereby the insurer agrees to pay all the costs for the vehicle repairs. The time period for coverage is specified when the policy is bought.

Auto repair insurance coverage

Auto repair insurance is categorized based on the limit of coverage that goes along with it. While some policies only provide breakdown coverage, the standard ones pay the maintenance costs for the insured vehicle as well. You can buy a policy with all inclusive repair coverage, or can choose to insure the costly parts separately. Your rates for the auto repair insurance policy will be influenced by the type of coverage you opt for your vehicle.

Factors that influence auto repair insurance

Automobile repairs may weigh heavy on your pocket, if major vehicle parts break down. Having auto repair insurance will at least lessen your burden, since you can claim a lump sum amount for the necessary repairs, from your insurer. The premium that you have to pay for auto repair insurance is usually reasonable. The following factors are taken into account by the insurance providers, when they determine the rates for auto repair insurance policies.

1. The costs for repair - The market prices for the vehicles and the automobile parts are not fixed. They keep on escalating with time. Your rates will be determined by the estimated value of the repairs.
2. The age of the vehicle - The maintenance costs of a vehicle increase as it grows old, and so does the auto repair insurance rates.
3. The mileage of the car - The more you drive your car, the more will be the auto repair insurance rates on it.
4. The deductible for the policy - The deductible is the amount that the vehicle owner has to pay while making the insurance claim. It is a known fact, that a high deductible for an insurance policy lowers the rates charged on it. If the repair costs are less than the deductible that you have to pay, you must think twice before getting the auto repair insurance.
5. Other charges - Several other charges like the processing fees, surcharges, taxes etc are included in your auto repair insurance policy. These increase your overall costs for the policy.

However, you'll need to find out specifically which repairs will be covered by the auto repair insurance policy, before you sign the documents. If you have a policy with partial repair facilities, and any other automobile part which is not covered by your policy, needs to be repaired, you’ll have to bear all the costs on your own.