How to get the lowest car repair insurance rates

This truth puts you as a consumer in a quandary. You need car repair insurance on vehicles that are older and more likely to break down. But these are exactly the cars that demand the highest rates from the insurance companies. If a car is expensive to repair, then it will also require high car repair insurance premiums.

Car repair insurance is also known as extended warranty coverage. More people are familiar with this term, and have a better understanding of what this means. Traditional insurance companies are not in the car repair insurance business, and consumers shouldn’t think of car repair insurance in the same way that they do liability and collision insurance. Therefore, to get the best rates on this type of insurance, you should deal with the older, more reputable companies that have good claim payment records. The premium prices you pay for these companies will be better values.

What to Avoid

You should avoid car repair insurance companies that market heavily with scare tactic promotional materials. Those who send the cards in the mail or make the ominous telephone calls warning that your factory warranty is about to expire often have the highest rates for the least amount of coverage.
You should also avoid the pre-paid service contracts sold by commissioned third-party salespeople. These salespeople often have no concern about whether or not you get good service. Also, these types of policies often have many exclusions in their coverage and may not be accepted by your auto shop. This increases the cost of the policy.
Car repair insurance can be a lifesaver if you have a transmission fail or an engine seize. However, purchasing this coverage from the wrong company can mean paying excessive rates that make it inefficient and not cost effective.