Mechanical breakdown insurance is offered by insurance companies and coverage options and premiums are controlled by state insurance departments. It is quite different from auto insurance. In these days of rising prices, people think that liability coverage is sufficient. The question ‘should I get mechanical breakdown insurance’ is very common.
When you buy a car, after few days, there are likely to be repairs or mechanical problems. Once the warranty period is over for your new car, any repair expense has to be borne from your pocket where there is no repair insurance cover. Keeping this in mind, it is better to have mechanical breakdown insurance along with your normal auto insurance cover. This will protect you from expensive car repair bills that can be in thousands of dollars.
Mechanical breakdown insurance provides covers for mechanical parts of your car
Mechanical breakdown insurance cover provides coverage for all mechanical parts of the car. It covers all parts as well as systems and also saves you money by charging only a small premium amount. Today many insurance companies are offering this type of insurance cover. Just like normal auto insurance, it also has a small deductible amount that you will pay when the vehicle needs repairs and the balance amount will be paid by the insurance company.
Some insurance providers insist that your car should be less than 15 months old in order to avail mechanical breakdown insurance. They will not insure any vehicles that are quite old under mechanical breakdown insurance cover as older vehicles are more prone to breakdowns or accidents. Generally insurance companies provide mechanical breakdown insurance cover for terms ranging from 1 year to 6 years for 12,000 to 100,000 miles. Few insurance companies provide mechanical breakdown insurance cover for parts and labor for repairing/replacing major component parts. Specific components like engine, cooling system, turbo charger, brakes, seals and gaskets, casings, automatic gearbox, front wheel drive and rear wheel drive are covered under this insurance policy. It also provides covers for wear and tear of covered parts.
Selecting the right insurance cover
Today many insurance companies are offering mechanical breakdown insurance. But policies differ from company to company. It is better to do a thorough research and find the right policy that suits your budget. Get quotes from different insurance companies and compare them. Check if discounts are offered by insurance companies as many companies provide discounts if you buy multiple policies from them. At the same time you should look for insurance covers that are cheap and affordable. This can provide you the required protection saving money in case of any breakdowns.
It is wise to go for mechanical breakdown insurance as this policy provides better covers than an extended auto warranty. If you have any doubts regarding coverage of specific parts, you can consult your insurance agent and seek clarifications.