Breakdown Insurance for the Daily Commuter

If you are a daily work commuter, you will love breakdown insurance. It is true that your vehicle needs to be less than seven years old and have fewer than 100,000 miles on it to qualify, and that you must purchase your breakdown insurance while it is still under warranty. With all that said, even the best of vehicles can develop unexpected glitches. When minutes count, it is good to have someone you can call.

A Miniature Case History

A woman and her teen-aged daughter stop at a McDonald’s for breakfast. The day before, her vehicle had been in the repair shop to have its brakes repaired. After they obtained their breakfast, mother and daughter walk back to the vehicle, only to discover that the parking brake was on and would not release. The mother’s job was normally 45 minutes away from the McDonald’s, and the daughter’s school thirty minutes away. Even though she called the repair shop, they replied they could do nothing from where they were located even though the mechanical failure turned out to be their fault. The daughter missed her first class at the local junior college and the mother was late for work – again. This particular vehicle had been the cause of several late arrivals. The vehicle was too old for breakdown insurance, but roadside assistance might have saved the day.

Value of Buying New

Let it be said here that no vehicle dealership is backing this statement, but there is something to be said for purchasing a new or even nearly new vehicle. Although you will immediately be slammed with depreciation, it is easier to get a loan for a new car or truck than for one that is used. You will have a warranty for at least the first year of operation, and possibly for the second, and you will be able to begin breakdown insurance that will cover major repairs for the first seven years or 100,000 miles of operation of your vehicle. New doesn’t have to mean fancy. You can get a basic sedan for less than $17,000. You are likely to pay a little more in insurance, so be prepared for a rate hike as compared to the used car you trade in. But the biggest benefit is that if it breaks down, you can call someone to come get it and fix it without being out of pocket for a major repair.

Aging Vehicles

Aging vehicles are not always a bad choice, but you should be prepared for frequent small repairs and the possibility of large repairs. If your vehicle is second hand out of the insurable for breakdowns range and beyond your last extended warranty, it is advisable to develop and keep a revolving savings account of at least $1500 and $3000 is better. At the 200,000 mark, vehicles are more likely to develop major mechanical failures such as locked transmissions, worn piston sockets, and drivetrain issues. As you begin to add up the repairs, that new car payment might begin to look better by comparison especially if you are not an auto mechanic and do not have one in the family. If you are a commuter whose job depends on getting to work on time, having an inexpensive runabout that can be covered by breakdown insurance can be a real job saver.

The Reality of Vehicle Ownership and Work

The fact is that unless you are lucky enough to work from home or live within walking distance of your job, you will need some sort of transportation. For many people that means owning and operating a car, which makes breakdown insurance your best friend.