Best Auto Insurance Companies For Vehicle Maintenance Services

Car repair insurance, also known as mechanical breakdown insurance (MBI), is a type of insurance that covers the cost of repairing your car if it experiences mechanical failures not caused by an accident or wear and tear. It is an optional coverage that can be added to your current auto insurance policy. While it serves a similar purpose to a vehicle warranty, it provides ongoing coverage as long as you pay for it. This type of insurance is especially useful for older cars or if you buy a used car with significant mileage. It's important to note that car repair insurance doesn't cover routine maintenance or repairs resulting from accidents. When choosing an auto insurance company, it's worth considering the eligibility requirements, coverage options, and whether they offer car repair insurance or MBI.

Mechanical breakdown insurance

MBI is ideal for those with newer vehicles who want to avoid high out-of-pocket repair costs, as well as those planning to keep their vehicles for a long time. It typically covers major vehicle components, such as the engine and transmission, but does not cover routine maintenance services like oil changes, tire rotations, or brake pad replacements.

When purchasing MBI, you can choose a deductible that fits your budget, usually ranging from $100 to $500. The coverage term can vary, with some companies offering up to seven years or 100,000 miles of protection. MBI is often more comprehensive than an extended vehicle warranty, which may only cover specific parts for a limited time.

Some insurance companies that offer MBI include GEICO, Progressive, and AAA. GEICO's MBI is available for new or leased cars less than 15 months old and with less than 15,000 miles. Progressive's MBI covers both cars and RVs, while AAA provides coverage for vehicles up to 12 years old with up to 175,000 miles.

Car repair insurance

Eligibility requirements for car repair insurance vary across insurance companies. For instance, Geico offers MBI for new or leased cars that are less than 15 months old and have fewer than 15,000 miles, whereas AAA provides coverage for vehicles up to 12 years old with up to 175,000 miles on the odometer. Olive, a company specialising in vehicle repair plans, covers vehicles up to 10 years old with up to 140,000 miles on the odometer.

When purchasing car repair insurance, you will usually need to pay a deductible, after which the insurance will cover the remaining cost of the covered repairs. The deductible amount varies, with options ranging from $100 to $500. Car repair insurance can be paid for through monthly payments or annual payments, allowing you to pay as you go.

It is worth noting that car repair insurance is not offered by all insurance companies, and it may only be available for new or nearly new cars. Before purchasing car repair insurance, it is important to consider your car's age, your driving habits, and your existing insurance policy to determine if it is a suitable option for you.

Vehicle protection plans

Mechanical breakdown insurance covers the cost of repairing or replacing mechanical parts that have suffered sudden and unexpected breakdowns. This includes major components such as the engine, transmission, drive train, cooling system, and fuel system. The insurance will also cover the cost of a rental car and added meal and hotel expenses if you experience a covered breakdown while on the road.

It's important to note that mechanical breakdown insurance does not cover routine maintenance or repairs caused by accidents, collisions, or environmental factors. Additionally, this type of insurance usually has a higher deductible than an extended warranty, and you must pay a monthly premium to maintain coverage.

When considering a vehicle protection plan, be sure to shop around and compare the eligibility requirements, coverage limits, deductibles, and monthly premiums offered by different insurance providers. It's also important to understand the claims process and whether you'll need to pay for repairs upfront and get reimbursed or if the insurance company will pay the repair shop directly.

Some companies that offer vehicle protection plans include Geico, AAA, Allstate, Progressive, Olive, Mercury, and CarShield. These companies have different eligibility requirements and coverage options, so be sure to review their plans carefully to find the one that best suits your needs.

Long-term powertrain wrap vehicle service contracts

The Allstate Long-Term Powertrain Wrap Vehicle Service Contract is a vehicle service contract that helps protect car owners from costly repairs. This contract is an extension of the Long-Term Powertrain Limited Warranty, covering items that are not already protected.

The Allstate Long-Term Powertrain Wrap Vehicle Service Contract covers 100% of the parts and labour for repairs, after the deductible is paid. This can help protect car owners from increasing repair costs and the burden of out-of-pocket expenses. Additionally, this contract adds value to the vehicle by providing a fully transferable agreement, which can be beneficial if the car is resold.

This contract is sold through authorised dealers across the country and provides protection for various vehicle components, including the engine, transmission, drive axles, brakes, electrical systems, steering, and cooling systems.

The Allstate Long-Term Powertrain Wrap Vehicle Service Contract is a comprehensive solution for car owners seeking peace of mind and financial protection from unexpected repair costs. It ensures that car owners don't have to worry about the financial burden of repairs, as the contract covers a wide range of vehicle components beyond the standard warranty.

With the Allstate Long-Term Powertrain Wrap Vehicle Service Contract, car owners can rest assured that they are protected from the financial strain of unexpected repairs, making it a valuable investment for maintaining their vehicles in the long term.

Extended warranties

When considering an extended warranty, it's crucial to understand what is covered and what isn't. For example, routine maintenance like oil changes and tire replacements are usually not included. Additionally, there may be restrictions on covered components and pre-existing conditions. Some companies also require a waiting period before the warranty takes effect to ensure they are not covering issues that existed before the purchase of the warranty.

When comparing extended warranties, consider the following:

• Cost: Evaluate the monthly or annual cost of the warranty and whether it fits within your budget.
• Coverage: Understand what types of repairs and components are covered and whether there are any exclusions or restrictions.
• Eligibility: Check if your vehicle meets the eligibility requirements, including age and mileage limits.
• Customer service: Research the company's customer service reputation and claims processing procedures.
• Add-ons: Look for additional benefits offered, such as roadside assistance, rental car reimbursement, or trip interruption coverage.
• Waiting period: Find out if there is a waiting period before the warranty takes effect and whether any pre-inspection is required.
• Payment options: Consider whether the warranty offers flexible payment options, such as monthly instalments or a lump-sum payment.

Frequently asked questions