Auto Repair Insurance for Older Cars: Cheaper Options and Coverage

If you're driving an older car, you might be wondering if you need auto repair insurance. The good news is that it's not as expensive as you might think.

One option to consider is using a service contract, which can cost between $500 and $2,000, depending on the age and condition of your vehicle.

Many older cars are still reliable and can last for many years with proper maintenance. In fact, a study found that the average age of a vehicle on the road is over 11 years.

For those who can't afford a service contract, there are still cheaper options available. Some repair shops offer a "warranty" or "guarantee" on their work, which can provide peace of mind for a lower cost.

Car insurance for older cars can be a tricky thing to navigate, but understanding the costs and effectiveness of different coverage options can help you make an informed decision.

The cost of car insurance for older cars depends on several factors, including the make and model of your vehicle, its repair price, anti-theft and safety features, and your coverage selection.

In some cases, an older car may be cheaper to insure than a newer one if you choose to no longer carry full coverage or endorsements like new car replacement coverage. However, if you can afford to fix or replace your older car without insurance, you may not need collision and comprehensive coverage.

MBI (mechanical breakdown insurance) premiums are generally more affordable, especially when spread out as monthly payments, and can protect key vehicle components from costly repairs.

Insurance costs for older cars can be a mixed bag. While they may have lower value, older cars often have expensive parts that can drive up repair costs.

Newer cars may be more expensive to insure due to their higher value, but older cars can be costly as well. The older a car gets, the harder it may be to source parts for repair, which can increase insurance costs.

Your car's make and model can impact insurance premiums, and each insurance company uses its own rating structure. A vehicle that holds its value over time may be more expensive to insure than one that depreciates quickly.

Repair price, anti-theft features, and safety features are all factors used to determine your final insurance premium. Your coverage selection may also change as your car gets older, potentially impacting your premium.

In some cases, an older car may be cheaper to insure than a newer one if you choose to no longer carry full coverage or endorsements like new car replacement coverage.

Having a mechanical breakdown insurance (MBI) policy can be a cost-effective way to protect your older car from major repairs. The average repair cost for older cars tends to rise with age, often exceeding thousands of dollars. In contrast, MBI premiums are generally more affordable and can be spread out as monthly payments.

MBI premiums are often more affordable than people assume, and the savings from being covered for one major repair can reinforce the value of MBI coverage. For example, if you pay $50 per month for MBI and it covers a $5,000 repair, you'll save $400 per year.

The cost-effectiveness of MBI is evident when you consider the potential repair costs for major vehicle components, such as the engine or transmission. These repairs can be substantial, but with MBI, you can have peace of mind knowing that you're protected against these costly repairs.

Here's a comparison of the costs:

As you can see, the potential repair costs for major vehicle components are significant, but MBI premiums are relatively affordable. By paying a set monthly premium, you can have financial protection against these costly repairs.

Many car owners worry that their older vehicle won't qualify for mechanical breakdown insurance, but the truth is that MBI providers like Endurance offer plans specifically designed for cars up to 120 months and 150,000 miles old.

To qualify for MBI, you'll need to meet the provider's age and mileage standards, which can vary depending on the company. Endurance, for example, divides its MBI programs into two categories, with newer cars eligible if they're up to 48 months old and haven't exceeded 50,000 miles.

Even if your car is older, you can still get coverage for the most important parts, like the engine, transmission, and driveline, which can be expensive to repair. In fact, Endurance's most affordable MBI plan covers the powertrain, giving you peace of mind on the road.

Eligibility Criteria for Mechanical Breakdown Insurance (MBI) can vary by provider, but most have a clear set of standards to determine whether a car is eligible for coverage.

Newer cars can be eligible for MBI if they're up to 48 months old and haven't exceeded 50,000 miles, as seen with Endurance's program.

Older vehicles can also qualify, with some providers offering coverage for cars up to 120 months and 150,000 miles, as Endurance does.

Many mainstream auto brands offer only three years or 36,000 miles of protection, so MBI can provide an added layer of security for car owners.

If your car meets the eligibility criteria, you can secure MBI coverage, giving you peace of mind and protection against costly repairs.

To get one, you'll need to meet the eligibility criteria outlined in the article.

You'll need to be a resident of the United States and have a valid Social Security number.

The program is available to individuals with a disability, blindness, or end-stage renal disease.

You can apply online, by phone, or in person at your local Social Security office.

The application process typically takes several weeks to a few months to complete.

You'll need to provide documentation, such as proof of identity and income, as part of the application process.

You can also apply for a representative to help you with the application process if needed.

Grundy insures most types of vehicles 25 years old and older, including modified vehicles with higher performance engines and custom vehicle valuations. They are also the largest insurer of hot rods in the USA.

Endurance's MBI programs in California offer three core plans: Standard, Premium, and Elite Plus. These options allow car owners to select the type of protection that best matches their needs and budget. Each plan has its own set of benefits and coverage levels.

Here's a breakdown of the three Endurance MBI plans:

MBI won't cover key parts, but it does cover the powertrain, which can be a relief for car owners. Even the most affordable MBI plan covers the engine, transmission, and driveline.

However, MBI won't cover routine maintenance services like tune-ups and oil changes. It also doesn't pay for components that deteriorate through regular use, such as tires, brake pads, and wiper blades.

If you're looking for broader coverage, an exclusionary program can provide protection for most vehicle components except for specific exemptions. This can give you peace of mind knowing that you're protected in case of a mechanical breakdown.

Grundy insures most types of vehicles 25 years old and older. They also cover modern muscle cars and exotics of all years. Grundy understands custom vehicle valuations very well, and in fact, they are the largest insurer of hot rods in the USA!

If you have a classic car or a modified vehicle, Grundy has you covered. They insure vehicles with higher performance engines, suspensions, and modified bodies. This means you can enjoy your unique ride without worrying about the financial burden of repairs.

Here are some examples of vehicles that Grundy covers:

Grundy's expertise in custom vehicle valuations ensures that your unique ride is properly insured. Whether you're a hot rod enthusiast or a collector of rare cars, Grundy has the knowledge and experience to provide you with the right coverage.

Grundy insures most types of vehicles 25 years old and older, including modern muscle cars and exotics of all years. They also cover modified vehicles with higher performance engines, suspensions, and modified bodies.

Endurance's MBI programs in California cover vehicles up to 10 years old and 150,000 miles. This includes older cars, which are more prone to mechanical failures.

The types of vehicles covered by MBI plans vary, but most include protection for the powertrain (engine, transmission, and drive axles) and other core components. Some MBI providers, like Endurance, offer exclusionary programs that cover most vehicle systems and components.

Here's a breakdown of the types of vehicles covered by MBI plans:

Keep in mind that MBI policies have exclusions, such as routine maintenance services like tune-ups and oil changes. It's essential to review your policy to understand what's covered and what's not.

MBI offers financial protection by protecting against unexpected repair bills, making car ownership more predictable and budget-friendly. Knowing the cost of coverage upfront, including any deductibles, is a big advantage.

With customizable coverage options, you can select the type of protection that best matches your needs and budget. Endurance offers three core MBI programs in California: Standard, Premium, and Elite Plus.

Optional coverage upgrades are available, such as critical emissions coverage, which is vital due to California's strict anti-pollution focus. You can also cover commercial-use vehicles, including autos used for rideshare and delivery services.

Having the option to choose from any licensed repair facility is a great benefit. This flexibility ensures you can enjoy the convenience of a neighborhood repair shop or the technical expertise of a dealership.

Roadside assistance is also included in all Endurance MBI programs, providing comprehensive support like 24/7 roadside assistance, towing reimbursement, rental car reimbursement, and trip interruption protection.

Some people may think MBI is too expensive for their older car, but premiums are often more affordable than people assume. The savings from being covered for one major repair can reinforce the value of MBI coverage.

Here are some of the benefits of MBI for older vehicles: