Have you ever been stuck with an expensive, major car repair and wondered how you would pay for it? Have you used your savings or maxed out your credit cards to pay for the repair?
Even if you haven’t, you probably know that repairing any of your car’s major components is expensive. That’s where a vehicle protection plan from Red Shield Administration comes in. It can help eliminate the headaches caused by major car repairs.
A vehicle protection plan from Red Shield makes sense for many reasons, and many vehicle owners will sleep better knowing they have the added protection to help cover the costs of major repairs.
Both new and older car owners can benefit from the added peace of mind. But, before purchasing an extended vehicle protection plan with Red Shield Administration, or any service provider, there are a few points to consider.
A new or almost new car often comes with a manufacturer’s warranty that covers the major parts of the power train. Some repairs are not covered, and usually, maintenance is not covered.
Some dealerships offer maintenance for free or at a low cost to buyers, which helps prevent some types of major repairs in the future. However, regular maintenance is no insurance against a major breakdown.
An extended package such as one offered by Red Shield Administration offers much more than protection for power train repairs. Therefore, it may make sense even if you have purchased a new or relatively new vehicle.
Here are some other things to think about when considering a vehicle protection plan.
1. Peace Of Mind
A vehicle protection plan may be a good idea if you lose sleep at night worrying about a significant repair and the high costs. Most of the time, those worries are not unfounded.
You may know friends or family members who have had to take their vehicles in for major repairs they could hardly afford. These experiences are real and demonstrate how significant repairs can negatively affect the lives of car owners seemingly overnight.
Many protection plans have a small deductible of $100 for each repair. This is far better than paying thousands for a central transmission or engine repair or, worse, not being able to pay for such a repair and having to park the vehicle in the garage. All the hassle of a major repair can be avoided by purchasing a protection plan like the ones offered by Red Shield Administration.
If you can’t sleep worrying about a significant breakdown and wonder how you would pay for one, a vehicle protection plan makes sense.
2. Affordability of Significant Repairs
If you’ve got money in the bank and are financially comfortable, you may not need to worry about potential breakdowns and expensive repairs. That’s great if you’re in that position, but it’s essential to save money still where possible.
If you’re not financially well off but generally do okay, the question is if you have the self-discipline to put away money every month, you have a small nest egg for significant repairs. You could put aside $5000 and still not have quite enough for a significant repair, depending on where you live and what the repair shops in your area charge for significant repairs.
If it takes too long to save up for a major repair, a vehicle service plan may be a better option because you don’t have to come up with all the money immediately. Service plans usually offer several payment options so you can pay over time rather than in one lump sum.
3. Inconvenience of a Major Repair
Major vehicle repairs can take weeks. You may be inconvenienced for an extended period of time, having to arrange rides or pay for a rental. Renting a car can add up quickly, and you may not be able to pay for a rental after finding out how much the repair will cost.
You may have difficulty getting to work or necessary appointments and meetings without reliable transportation. You could jeopardize losing your job or not taking care of your health.
A plan from Red Shield Administration can pay for the rental cost, so you can get where you need to go without worries. In many cases, the rental is covered from the first day of the repair, so you will not be inconvenienced and can take care of the essential things in your life.
When deciding whether a vehicle protection plan is good, you must ask a few critical questions. The first is how the plan pays for the repairs. Does it reimburse you or work directly with repair shops? You will also want to know how long it takes for a major repair to be approved.
Another consideration in purchasing a vehicle protection plan like one from Red Shield Administration is understanding what each plan will pay for.
Red Shield offers several different plans at different levels. Some plans only pay for power train-related repairs. Others are more inclusive. What you choose may depend on what you can afford to pay out of pocket when a repair is needed.
You will want to find out where you can take the vehicle for repairs. If you’re traveling out of town, will you be able to get it to a nearby shop, and will it be covered? This is essential if you frequently travel for work and use your vehicle. If you drive a company vehicle, it may not matter so much.
If you plan on passing down the vehicle to a child or another family member, you may want to find out if the plan is transferrable, as some are not. These are all important considerations to guide you in determining if you should purchase a vehicle protection plan with Red Shield Administration and, if so, which plan makes the most sense.