You need automotive breakdown insurance. It really is just that simple.
Imagine the unthinkable
Even on luxury cars, timing belts cost under $20. When timing belts break, however, their failure cause the engine to seize-up and self-destruct. In other words, failure of an inexpensive part triggers the need for an overwhelmingly expensive repair.
Risk doing the math: A four-cylinder engine for a five-year-old sub-compact car costs approximately $2,000; installing it costs another $2,000. Costs scale up from there. Newer, bigger, more sophisticated engines cost considerably more. Repairing a major automotive meltdown may cost more than your car is worth, but circumstances conspire against you. You cannot sell the car while a new owner cannot drive it, and you cannot recoup your investment if you sell the car just for salvage. Especially if you are still making payments on an auto loan, you have no other prudent option: you must repair the car regardless of the extortionate cost. Moreover, because your family depends on the car for work, school and everyday errands, you must repair the car as soon as possible. Before the unthinkable becomes a fact of real life, invest in breakdown insurance.
A few very-very good reasons to invest in breakdown insurance
Your regular car insurance protects you in case of accident, vandalism, or natural disaster, and your new car warranty protects you against “defects in products and workmanship.” Neither protects you against <a href=”http://coverhound.com/insurance-learning-center/do-you-need-auto-repair-insurance”>routine wear and tear on your car or serious breakdowns</a>, however. When you invest a few dollars in breakdown insurance, you protect not only a major investment but also your family’s safety and livelihood.
– You cannot afford major auto repairs.
You simply cannot do without your car for an extended period of time. The entire family depends on the car for transportation to work, school, youth activities, and everything else that sustains everyday family life. Even if you have an “emergency fund,” your savings probably will not stretch to cover the cost of major auto repair, and short-term loans threaten to cripple your credit. Breakdown insurance gets you back on the road with minimal disruption of your daily routine and absolutely no strain on your cash flow.
– You want to protect your investment.
Every driver reasonably expects his car to outlive his auto loan. Although no car genuinely qualifies as an “investment,” nevertheless families stretch their budget limits to buy high-end vehicles because they are essential to their quality of life. If you took out a five- or six-year loan, or if you originally leased your car and then purchased it for its residual value, you have substantial financial and emotional investments in your vehicle. Breakdown insurance guarantees you can pay for factory-authorized repairs so that you limit your car’s depreciation or loss of resale value.
– Your new car warranty has expired.
Breakdown insurance not only picks up where your warranty leaves off but also provides for service and repairs your warranty did not cover. Even if the manufacturer warranties your engine and drive train for ten years, you should supplement your factory coverage with breakdown insurance. Reliable breakdown coverage will pay for brake and clutch replacement and other routine services your warranty does not cover.
– The premiums buy tremendous peace of mind.
Imagining staggering repair costs seems nightmarish enough. Imagining a serious breakdown in rush-hour traffic on a rain-soaked freeway multiples the nightmare to the power of three. Because mechanical failures number among the leading causes of accidents, prudent investment in your car’s moving parts protects passengers too.
Shop, talk and learn before you buy.
Use your Internet tools for comparison shopping among carriers, because premiums and exclusions vary dramatically. As with other car insurance, premiums for breakdown insurance may vary according to your credit score as well as the make and model, age, and daily use of your car. After your Internet orientation to the market, discuss your best, most reliable choices with a trustworthy insurance agent.
James Hower is a freelance blogger who writes on behalf of autorepair.net, a site where you can find auto repair services and resources in your area.