If you’ve been hearing about mechanical breakdown insurance policies, you may be wondering if it’s a worthwhile investment for you and your vehicle. After all, when it comes to supplemental insurance coverage for your car, not all policies are created equal. As with any optional insurance, it’s important to be sure you are dealing with a reputable mechanical breakdown insurance company. Choosing a company with a great reputation can help you avoid being blindsided by hidden charges, additional fees, lack of coverage, and more when you need it. Before investing in a policy, check out these tips for determining whether you can trust a mechanical breakdown coverage provider.
What’s the Breakdown About Mechanical Breakdown Coverage?
Before looking for the right mechanical breakdown coverage for your vehicle, it’s a good idea to completely understand how this unique type of coverage can help you. First of all, mechanical breakdown insurance sometimes gets confused with standard auto insurance; however, these are two different services. The type of auto insurance that is mandatory for drivers to carry pays for damage to your vehicle that is incurred through an accident or auto theft, but it does not pay for the unexpected mechanical problems caused by normal wear and tear. For example, a transmission repair that occurs simply because your car’s transmission breaks down will not be covered by traditional auto insurance, but it will be covered if you also carry mechanical breakdown coverage. Exactly what is covered and the cost of your deductible depends on your plan, but having mechanical breakdown insurance can offer peace of mind, provided you have chosen a reputable company.
Additionally, mechanical breakdown coverage is optional, while traditional auto insurance is required in order for you to legally drive your car. Failure to have auto insurance can result in fines, a suspended license, and even jail time in some circumstances. Purchasing mechanical breakdown coverage is not a substitute for having auto insurance; it is meant to supplement your existing auto insurance by covering vehicle repair that is not covered by your auto coverage plan.
When thinking about getting an extended warranty on a used car, you might have different options – depending on the state that you live in. Extended warranties are actually either Mechanical Breakdown Insurance in California) or a Vehicle Service contract (in the rest of the USA).
Here’s how you can tell whether to trust an insurance provider for reputable, comprehensive mechanical breakdown coverage:
“A” Rating with Better Business Bureau
Before signing up for mechanical breakdown coverage for your vehicle, make sure the insurance company has an “A” rating with the Better Business Bureau. This regulatory board for businesses exists to help consumers find out whether they can trust a company to provide quality products and services. BBB accreditation must be applied for and awarded, and the bureau’s standards are high. Look for an insurance company that is not only accredited by the Better Business Bureau but also highly rated by them for its outstanding level of trust and integrity.
Overwhelmingly Positive Online Reviews
We’re living in the age of Yelp!, Google, and Facebook Reviews. These days, it’s hard for businesses to hide their less-than-reputable practices anymore, and that’s a good thing for consumers everywhere! Simply conducting a quick Internet search can help you find reviews, positive or otherwise, for just about any business on Earth, including insurance companies that provide mechanical breakdown coverage. It’s important to do your due diligence and read reviews from people who have had experience with the type of mechanical breakdown coverage you’re thinking of purchasing, so you know exactly what you’re in for when faced with auto repairs. By looking at reviews from previous and current customers, you can determine whether the provider offers high-quality service and great value, or whether you’re better off looking for another insurance company.
Word of Mouth
In addition to online reviews from the general public, it’s a good idea to get the opinions of trusted friends, relatives, and neighbors about any positive (or negative) experiences they’ve had with mechanical breakdown coverage providers. The people you trust most will be sure to help point you in the right direction, as well as steer you away from less-than-reputable companies before it’s too late. Just about everyone you ask who has had previous experience with mechanical breakdown coverage will have a story, positive or negative, about the company, what you can expect if you purchase insurance there, and whether the policies they offer are even worthwhile. Ask around and see which of your friends and loved ones can help you decide which mechanical breakdown insurance provider to choose.
The Takeaway
To reiterate, while mechanical breakdown insurance is not the same as traditional, mandatory auto insurance and is not required for vehicle owners, having a mechanical breakdown coverage plan can help pay for unexpected repairs and other unforeseen costs that otherwise could be financially devastating. Considering that the average transmission repair bill costs approximately $2,000, while a typical engine rebuild can run anywhere from $2,500 to $4,000, it’s safe to say most people don’t just have that kind of money laying around in case of emergency. Costly auto repairs can wreak significant havoc on your life and your wallet when they arise. It pays to have some kind of coverage, such as mechanical breakdown insurance, to help minimize the costs of repairs rather than to try to figure out how to come up with the entire cost alone.
By investing in mechanical breakdown coverage for your vehicle, you can help avoid major auto-repair headaches and enjoy the peace of mind that comes from knowing you’re covered in the event of a breakdown. Planning ahead and choosing a reputable insurance provider helps you prepare for a far less stressful future for you and your car!
