Faced with the spiraling cost of keeping a car on the road, many motorists are looking at car repair insurance and extended warranties to help offset some of the bills.
This becomes even more attractive when offered by the vehicle manufacturer as part of a package, or as is often the case, by reputable second hand car dealers in order to sweeten the deal. But if you are looking at taking out car repair insurance by yourself, is it actually worth the cost?
Let’s take a look at some of the points you should consider before you sign on the dotted line of any car repair insurance policy.
What does the policy cover?
Pay close attention to the insurance policy small print to determine exactly what is covered, and more to the point, what is NOT covered under the terms of the warranty. Just like any other form of auto repair insurance, companies often try to squirm out of paying out by hiding details within the small print in the hope you won’t spot it.
If your particular vehicle has a history of common problems, it may be worth seeing if they are specifically excluded from the policy before you shell out your hard earned cash. check out web forums to see if there are any common mechanical faults associated with your vehicle so that you can check the small print for them.
Factory Recalls
It is worth seeing if your vehicle has any outstanding factory recall notices which need to be addressed. My 10 year old Fiat Punto was recalled to have the brake pipes replaced and this was paid for by the manufacturer! Of course, the main dealer tried to upsell me on pretty much everything in the showroom by I managed to resist.
Owners Clubs
Take a look at any offers listed by your vehicles owners club. They sometimes negotiate special deals with companies, passing on the savings to you.
Car Repair Insurance Quotes
As with any form of insurance, it pays to shop around. don’t simply accept a quote in the heat of the moment, and NEVER allow a pushy rep to bully you into signing anything you haven’t checked out beforehand. As a quick rule of thumb, the more insistant the salesman, the more you should check out his competitors!
Get a number of insurance quotes and make a list of any differences, such as excluding gearbox repairs or a compulsory excess. This way, you can compare insurance quotes on an even footing, rather than being led by the patter of the salesman.
Overall, car repair insurance, like pretty much any other form of extended warranty, can be a good way to protect yourself from any nasty surprises your garage may throw at you. But as always, you need to do your homework first to make sure you are actually buying a bargain.