Auto maintenance insurance, also known as mechanical breakdown insurance, is a type of coverage that provides protection against unexpected repair costs for a vehicle.
In this article, we will discuss how auto maintenance insurance works and how much it typically costs.
What is Auto Maintenance Insurance?
Auto maintenance insurance is a type of coverage that provides protection against unexpected repair costs for a vehicle. It is similar to an extended warranty, but typically covers a wider range of repairs and is offered by insurance companies rather than vehicle manufacturers. Auto maintenance insurance can cover the cost of repairs for issues such as engine or transmission failure, electrical problems, and other mechanical breakdowns.
How Does Auto Maintenance Insurance Work?
Auto maintenance insurance is typically offered as an additional coverage option when purchasing auto insurance. The cost of the coverage will depend on factors such as the make and model of the vehicle, its age and mileage, and the level of coverage selected.
If a covered mechanical breakdown occurs, the vehicle owner will file a claim with the insurance company. The insurance company will then determine if the repair is covered under the policy and will pay for the cost of the repair, minus any deductible or other fees.
Types of Auto Maintenance Insurance
There are several types of auto maintenance insurance coverage, including:
Exclusionary Coverage: This type of coverage is the most comprehensive and typically covers all mechanical breakdowns except for those specifically excluded in the policy.
Named Component Coverage: This type of coverage covers only specific components of the vehicle, such as the engine or transmission.
Enhanced Powertrain Coverage: This type of coverage covers the powertrain components of the vehicle, such as the engine, transmission, and drivetrain.
How Much Does Auto Maintenance Insurance Cost?
The cost of auto maintenance insurance will vary depending on several factors, including:
Make and Model of the Vehicle: The cost of coverage will be higher for luxury or high-performance vehicles that have more expensive parts.
Age and Mileage of the Vehicle: The cost of coverage will be higher for older vehicles with higher mileage.
Level of Coverage: The more comprehensive the coverage, the higher the cost of the policy.
On average, auto maintenance insurance can cost between $300 and $700 per year. However, the cost can be higher or lower depending on the factors listed above.
Benefits of Auto Maintenance Insurance
The benefits of auto maintenance insurance include:
Cost Savings: Auto maintenance insurance can save vehicle owners money on unexpected repair costs.
Peace of Mind: Auto maintenance insurance provides peace of mind that the vehicle is covered in case of unexpected mechanical breakdowns.
Protection: Auto maintenance insurance provides protection against expensive repair bills that can be financially devastating for some vehicle owners.
Convenience: Auto maintenance insurance makes it easier for vehicle owners to manage unexpected repair costs, as the insurance company handles the payment for covered repairs.
Conclusion
Auto maintenance insurance is a type of coverage that provides protection against unexpected repair costs for a vehicle. The cost of the coverage will depend on factors such as the make and model of the vehicle, its age and mileage, and the level of coverage selected. Auto maintenance insurance can save vehicle owners money on unexpected repair costs, provide peace of mind, and offer protection against financially devastating repair bills. If you are considering purchasing auto maintenance insurance, be sure to review the terms and conditions carefully and select a reputable provider.