Vehicle Repair Insurance: What It Is, How It Works & Why You Need It

If you own a car, you know how expensive it can be to maintain and repair it. Even minor repairs can add up quickly and major repairs can break the bank. This is where vehicle repair insurance comes in. In this article, we will explore what it is, how it works, and if it is worth it for you.

What is Vehicle Repair Insurance?

Vehicle repair insurance, also known as mechanical breakdown insurance or extended warranty, is an insurance policy that covers the cost of repairs or replacement of specific components of your car. It is designed to protect you from unexpected repair bills that may arise due to a mechanical or electrical breakdown.

How Does Vehicle Repair Insurance Work?

Vehicle repair insurance works by paying for the cost of repairs or replacement of specific components of your car that are covered under the policy. The coverage and cost of the policy depend on the type of vehicle you have and the level of coverage you choose.

Types of Vehicle Repair Insurance

There are two main types:

1. Manufacturer’s Extended Warranty

This type of insurance is offered by the manufacturer and provides coverage for specific components of your car for a certain amount of time or mileage.

2. Third-Party Extended Warranty

This type of insurance is offered by third-party companies and provides coverage for specific components of your car for a certain amount of time or mileage.

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Related Reading: Taking Out An Extended Car Warranty For Older Cars

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Benefits of Vehicle Repair Insurance

There are several benefits including:

1. Peace of Mind

Vehicle repair insurance gives you peace of mind knowing that you are covered if something goes wrong with your car.

2. Cost Savings

Vehicle repair insurance can save you money by covering the cost of repairs or replacement of specific components of your car.

3. Convenience

Vehicle repair insurance provides you with the convenience of having a single point of contact for all your car repair needs.

4. Value

Vehicle repair insurance can increase the resale value of your car by providing proof that it has been well-maintained.

Drawbacks of Vehicle Repair Insurance

While there are several benefits of having vehicle repair insurance, there are also some drawbacks, including

1. Cost

Vehicle repair insurance can be expensive, especially if you have a high-end car.

2. Limited Coverage

Vehicle repair insurance may have limited coverage and may not cover all the components of your car.

3. Excesses and Exclusions

Vehicle repair insurance may have excesses and exclusions that can limit the coverage you receive.

Is Vehicle Repair Insurance Worth it?

Whether or not vehicle repair insurance is worth it depends on several factors, including the age and condition of your car, the cost of the policy, and the level of coverage you need.

If you have a new or high-end car, vehicle repair insurance may be worth it to protect your investment. However, if you have an older car or a car that is in good condition, you may not need vehicle repair insurance.

Conclusion

Vehicle repair insurance is a type of insurance that covers the cost of repairs or replacement of specific components of your car. It can provide peace of mind, cost savings, convenience, and value. However, it can also be expensive, have limited coverage, and may not be worth it depending on the age and condition of your car.

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Related Reading: Why Click4Warranty: The UK’s No.1 Extended Car Warranty Cover

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Frequently Asked Questions (FAQs)

Q. What does vehicle repair insurance cover?

Vehicle repair insurance covers the cost of repairs or replacement of specific components of your car that are covered under the policy.

Q. How much does vehicle repair insurance cost?

The cost of vehicle repair insurance depends on the type of vehicle you have and the level of coverage you choose.

Q. Can I purchase vehicle repair insurance for my used car?

Yes, you can purchase vehicle repair insurance for a used car, but the cost and coverage may vary depending on the age and condition of the car.

Q. How long does vehicle repair insurance coverage last?

The duration of vehicle repair insurance coverage varies depending on the policy and the type of coverage you choose. Manufacturer’s extended warranty may last for a specific amount of time or mileage, while third-party extended warranties may have different terms and conditions.

Q. Can I choose the garage with a solid reputation for vehicle repair insurance work?

It depends on the policy and the type of coverage you have. Some policies may require you to use specific garage, while others may allow you to choose any licensed garage. Make sure to read the terms and conditions of the policy carefully to know your options.

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Related Reading: Car Maintenance Q & A: Frequently Asked Questions

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What are your options for extended UK car warranty cover?

We don’t want to complicate this, so we’ve kept it nice and simple. Here’s three great options for mechanical breakdown or electrical failure car warranty cover, that’ll give you all you need, including cover for wear & tear.

3-Star Car Warranty

Select this option if you want affordable cover for a long list of covered components. Gives you up to £7,000 claim limit towards the cost of parts, labour and VAT for the mechanical breakdown or electrical failure of covered parts.

4-Star Car Warranty

Select this option to cover a wide range of components on your vehicle, and get up to £7,000 claim limit towards the cost of parts, labour and VAT in the event of mechanical breakdown or electrical failure, or imminent failure identified during an MOT or service.

5-Star Car Warranty

Looking for comprehensive warranty protection? Our 5-Star warranty covers an extensive range of parts and offers up to £7,000 claim limit towards the cost of parts, labour and VAT for the mechanical breakdown or electrical failure of covered parts on your vehicle.