You see the ads everywhere you look and even get phone calls offering you coverage for repair costs once the dealer’s coverage has expired. You may think that having a new car means that you will never have to worry about paying for expensive repairs or at least not for a long time. Before trying to decide which company you should consider getting this extra coverage from, you should first know what protection you already have for your car.
If you bought a new vehicle, then you automatically had coverage for repair costs from the car manufacturer. This covers most components of the vehicle for a specified time or number of miles. If you aren’t sure what your original coverage was, then check your paperwork or check with the dealer to see if you are still covered or if the coverage has expired. Once this coverage ends, it is up to you to pay for all of your repair costs in full. This is why many people choose to buy coverage that will continue to pay for repairs when they are needed.
This coverage is somewhat like a service contract between you and the company providing the protection. There is a contract which makes the company responsible for paying for your car’s repairs for a specified period of time. In many respects, this is similar to buying insurance for your car in case it is injured so that you don’t have unexpected expenses that you can’t afford.
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