Found an auto repair policy for mechanical repairs only. cost 300 a year. good deal?

Question:
policy pays 50% of parts and labor. says no major engine or transmission replacements. all other okay. gives benefits back after 2 years if you dont utilize claims. sounds legitimate. and i do range from 250- 500 on minor repairs per year. oh.. does not pay for maintenance and new tires

Answers:

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Seems like you will loose money. If you pay $500 for repairs, and your contract pays half, you'll get $250 back but the contract costs $300.

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You need to spend $600 for repairs just to break even.

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I wouldn't buy it.

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Not a good investment. If you were in Vegas, this would be a bad wager. You are truly gambling that you will get a equal or better return on your dollar, and the stipulations on the policy handcuff you so much that collecting your monies is difficult at best. If it were so good, then why doesn't everybody have a policy?

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i've dealt with several insurance companies and most of them suck, i say you are better off without it

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