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When is mechanical breakdown insurance coverage worth your

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Since much of the 99 percent can't afford to purchase a shiny, oft-heralded brand new hybrid vehicle, they're driving their old gas-guzzlers longer. This means that as vehicles on the road grow older, they become more prone to mechanical breakdown. Enter auto insurance coverage businesses, banks and auto dealers with mechanical breakdown insurance coverage. Some believe it is an insurance product whose time has come, yet substantial questions exist as to whether the product is worth the money. Source of article:

why possibly not implement your own prefer you are able to evaluate

Plan on the right thing

Repairing your vehicle is a very costly thing to do and leaves those with less money hard up for cash. After driving a vehicle for a long enough time, the cost of fixing becomes unbearable. Those without extra cash will have to find another way to cover the repairs assuming there is not a lot of savings around.

Mechanical breakdown insurance coverage is an option some choose. Also referred to as auto fix insurance coverage, it is different from normal auto insurance collision coverage in that breakdown insurance coverage only pays for mechanical troubles unrelated to an accident, even after vehicle warranty expiration. Normal wear and tear isn't really covered, but other more catastrophic repairs named in the policy are covered. Thus, reading the fine print before sign-up is advisable. Consider what coverage is offered, the condition of your vehicle and whether the premiums fit your budget.

Coverage to think about

A mechanical breakdown insurance coverage policy typically covers:

Engine parts, from oil pump to water pump

Drive train

Transmission

Exhaust

Brakes

Electrical parts, such as the alternator

Other areas generally covered consist of air conditioning, steering and more. It even covers 24-hour roadside assistance, rental coverage and towing the majority of the time. There are extra parts of the vehicle you can get covered for additional money typically. Do not pay for the same thing twice by comparing the insurance with your warranty plan.

Looking to pay

This will vary by geographic region, vehicle and insurance provider (not your driving record or personal credit), but you need to expect to pay as little as $300 to as much as many thousand dollars per year. Some vehicle sellers will bundle the insurance coverage into auto loan payments. Deductibles of $100 to $200 are reportedly common, although no deductible coverage is accessible at a higher premium rate. One nice feature is that billing disputes involved in repairs are handled by the insurance coverage company.

Choosing

Mechanical breakdown insurance is a good thing for somebody who has an older car with possibility of mechanical breakdown increased. If you only keep the vehicle for a couple of years, it could possibly be worth the cost. Those who save a lot of money and always have extra cash around most likely do not need it though.

Sources

Money Crashers

Wall Street Journal

WiseBread

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