car repair

How To Pay for Car Repairs

The average cost for a vehicle repair is between five and six hundred dollars. That is just the average; a number of things could break down on a car, and eventually, something will break. In those inevitable instances, knowing how one will afford the costs is crucial.

What Insurance Covers

If an accident is a reason for the repair, then there is a high possibility that insurance will cover the cost.

There are many reasons for a damaged vehicle that is paid for by auto insurance. For instance, if an animal, like a deer, causes the accident, insurance should cover any repairs due to that accident. Another instance would be any damage that occurred during a natural disaster. Finally, insurance should also cover the cost of repairs if there is any vandalism or theft.

Insurance will not cover the regular repairs and maintenance of a vehicle. There are many reasons for a car needing repairs; in those instances, knowing different ways to pay for those repairs is helpful to every car owner.

Other Ways To Pay

When the inevitable happens, and a repair is necessary for a vehicle, a person can pay for it in various ways.

First, having emergency money for car repairs set aside is a great way to ensure the cost will not be a significant blow to a person’s finances. Create a separate savings account and put a little bit of money in it each month so when an unexpected repair is needed, it is there to cover the cost.

If the cost for the vehicle repair is more than expected, then there is also the option to take out a personal loan to cover the costs. This can usually be done through the individual’s bank, and a personal loan can be used for anything, including car repairs. There may also be the option of family or friends loaning the money, although that is not ideal simply because it could cause harm to that relationship.

Depending on the shop a person’s vehicle was brought to, there may be an option to sign up for an auto repair loan or payment plans. This is different from a personal loan because when done through the mechanic themselves, the money must go towards the specific repair needed. There is also an option to keep an emergency credit card to cover costs such as an unexpected auto repair. In this case, the only restriction is the limit available on that credit card.

There is also the chance a person could learn to fix their vehicle themselves. Many people are learning to do basic car repairs with the numerous resources available these days. If a person learns how to fix their vehicle, they could potentially save hundreds of dollars. The only cost would be the cost of any parts needed for the repair.

As a last resort, there is always the option to sell the car and allow someone else to deal with the repair. Of course, this is not ideal, but sometimes that is all a person can do.