Car Repair Insurance

This type of policy covers repairs, breakdowns and parts failures that typically aren’t covered by standard car insurance. It’s also possible to take out car repair insurance that targets specific parts of a vehicle.

Drivers can take out policies to cover individual car parts or systems. For example, to cover your car engine, your electrical systems or car braking systems.

This customisation enables you to protect the areas that are causing you worries, meaning you have a precise solution to a potential problem. Generally, when it comes to motor insurance, this will be more cost effective than taking out blanket insurance cover.

Some providers will offer bumper to bumper car insurance, covering all the key areas. For example, they might bundle together car repair insurance for the following:

• brakes,
• drivetrain,
• electrical components,
• engine,
• exhaust,
• transmission.

Typically, car repair insurance does not cover the likes of:

• broken lights,
• car body repairs,
• car windows.
• interiors.

There are some limits and exclusions that you may find written into the car repair policies that you are quoted.

Common exclusions to look out for include:

1. Claims limit: An upper limit on the amount an insurance provider will pay if you make a successful claim.
2. Maximum hourly rate: An upper limit on what your insurance provider will pay a garage for labour costs.
3. Vehicle age limit: An upper limit on the age of your vehicle, with some policies only covering vehicles under 5 years old.
4. Mileage limit: An upper limit on the mileage your car has covered, usually between 60,000-100,000 miles.

Most insurance firms will expect you to stay on top of their terms and conditions. If the exclusions apply to your vehicle but you haven’t noticed, or if you pass the limits while on a rolling insurance contract, your warranty won’t be valid and your insurance provider will not pay out.

It’s important that you always pay attention to the limits and exclusions you find in the fine print of your insurance contract, because it’s possible these can contain hidden fees or penalties. As long as you are aware of any restrictions written into your insurance policy, you can ensure you won’t face unexpected charges.