Car Repair Insurance – Do I Need It?

Used Car Warranty. Do I Need It?

car repair insurance - warrantyMost people have auto insurance — from an auto insurance company — to protect them from the cost of accident damage, theft, and liability resulting from at-fault accidents. However the kind of insurance that most people have doesn’t cover mechanical failures, wear-and-tear, electrical failures, or any damages not caused by an accident.

These kinds of problems are typically covered by new-car factory warranties — for a limited time or for a limited number of miles. Most new-car warranties expire in 36 or 48 months, and 36,000 or 48,000 miles. Powertrain warranties which cover certain engine and transmission failures are usually longer.

Why do car manufacturer’s not offer warranties longer than 3 or 4 years? Because that’s when problems are most likely to begin.

People who buy used cars with no remaining factory warranty, or a soon-to-expire factory warranty, should consider a kind of car repair insurance to protect them from the high costs of unexpected repairs. Don’t make the mistake of thinking that your conventional car insurance pays for non-accident related repairs.

What is car repair insurance?

Technically, car repair insurance is called extended warranty coverage. It serves to pay the cost of repairing problems that occur after the factory warranty expires – or in many cases it pays for repairs that the factory warranty doesn’t cover.

Although you can buy car repair insurance, or extended warranties, many different places, be aware that many of these products are simply pre-paid service contracts and have serious limitations that limit their value. Typically the company selling the contract is not the company who actually pays claims. They are simply making a commission on the sale and don’t much care if you get good service or not.

Where can I get reputable car repair insurance for my used car?

One company that provides extended warranties for used cars is different. They have been in business for 28 years, have been listed in Forbes Magazine Top 200 Companies, have sold nearly 2 million warranties, and have paid out over $600 million in claims. They offer five different coverage plans, handle and pay their own claims, and have an outstanding reputation for customer service.

Who are they?

The company is Warranty Direct®.

Here is a list of just some of the many types of repairs and costs covered by this car repair insurance:

  • Engine
  • Transmission
  • Electronic equipment
  • Power equipment
  • Air conditioning
  • Steering
  • Brakes
  • Cooling system
  • Suspension
  • 4×4 systems
  • Emissions system
  • Turbo/Supercharger
  • Towing fees
  • Travel expenses
  • Interior/Exterior Features
  • Damages due to overheating
  • Fuel System
  • Much more …..

If you are concerned about the cost of breakdowns and repairs for your used car, we recommend that you check with Warranty Direct® for car repair insurance. The relatively small cost of used car warranty protection can easily save you thousands of dollars in unexpected expenses — and give you some peace of mind.