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That was the question I asked myself after watching the third commercial for car repair insurance in less than an hour. Don’t get me wrong, I understood the premise: Pay us money and if your car breaks down, we will pay for the repairs. Sounds easy enough. Of course there must be a lot of money in it for the car repair insurance companies if they have enough money to buy three 30 second ads in an hour on one channel. So I decided to do a little digging and here is what I have found about car repair insurance from a website I linked below:

Partial Coverage – most of these policies do not cover all parts of your car; in fact, most policies contain exclusions for many common types of repairs. While some policies do offer bumper-to-bumper warranty protection, these types of policies are generally very expensive and add significantly to the overall cost of a vehicle.

Deductibles – regardless of the type of auto repair insurance policy you purchase, you generally will be required to meet some type of deductible before the coverage will cover any repairs at all. Some policies actually have a deductible amount on each part that is used in a car’s repair, and will usually require a customer policyholder spend several hundred dollars before the coverage pays for anything.

Other Insurance Hassles – because auto repair insurance policies or extended warranties are a type of insurance coverage, you may experience many of the hassles commonly associated with making an insurance claim. You may be required to pay for the repair out-of-pocket and then be reimbursed by the policy provider. In some cases you may be reimbursed fairly quickly, and in others – it may take weeks or months to receive your money.

While auto repair insurance policies are a good idea for some consumers, you may want to carefully evaluate if this type of coverage is appropriate for you or not. Today’s modern vehicles are made much better than they were in the past, and generally do not break down nearly as much. So, before you spend your money on these types of policies, you might want to consider saving the money and paying for repairs yourself as they are needed.

What Most People Don’t Know about Auto Repair Insurance

As you can see, car repair insurance is probably not for most people, but more and more people are buying into the illusion of car repair insurance. Please do your homework on these policies. Having your car break down is stressful enough, finding out that you have paid for car repair insurance that will not help you with the repair expenses could push anyone over the edge.

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