Whether you have bought a car by means of traditional vehicle financing or whether you are using a rent-to-own option, you will want to consider the different auto insurance options available to you. While normal car insurance generally covers damage to the vehicle caused by an accident, mechanical breakdown insurance covers other repairs that weren’t caused by a collision or accident.
Mechanical breakdown cover is necessary because major failures in your car’s engine or other mechanical parts can be expensive. If any large car system malfunctions, you could be strapped for cash trying to cover the costs of getting your car back on the road as quickly as possible.
Items that are not included in mechanical breakdown cover include:
- Routine car maintenance issues, and
- Any damages that have been caused as a result of the poor maintenance of the vehicle.
Different insurance companies will have different requirements to be eligible for mechanical breakdown cover. Some of the common requirements include:
- The car must be less than 1,5 years old, and
- The car must have less than 30 000 km on the clock.
One thing to keep in mind when considering mechanical breakdown cover for a new car is that many of the things that the insurance covers will also be covered by your car’s warranty. While a mechanical breakdown cover usually offers broader coverage, it may not be worthwhile if your manufacturer’s warranty already covers major issues that can cause damage to your car.