Car health insurance...?

Question

Why does car health insurance not exist I mean if it did then you would just pay a premium and then when you took it to a repair shop the insurance would cover it.

Answer 1

Welll, because cars depreciate to non-existance, in a relatively short period of time.  

They don't heal, there is regular maintenance that must be done, and things just wear out.  EVERYONE will be filing massive claims, by the time the car is ten years old.  That means, you can't make enough money off the insurance premiums, to cover overhead, make a profit for your investors, AND pay claims.

Most cars get junked by the time they are 10 years old.  

They are under warranty for the first 3-4 years.  So for six years of coverage, you have to collect between 10,000 and 20,000, for each person.

It's cheaper to just buy a new car.

Answer 2

There is. It's called an auto repair warranty, and it can be purchased for a used vehicle.

Log onto WWWutoWarranty.com or WarrantyDirect.com.

Answer 3

Car insurance exists.  There are several flavors.

Liability coverage will pay for damage done to other people's property if you have an accident, but not your own loss.  If you damage their car, or hit a house, for example, their loss is covered, but not yours.  You're out of luck.

Comprehensive coverage will cover damage to your own car.  Typically there is a deductible.  You would pay the first $500 or $1000, for example, and the insurance covers the rest.  The deductible keeps people from claiming minor little dents and scratches all the time.

I'm not sure what you mean by "health" insurance.  Normally health insurance would cover doctor's costs, hospitals, and other medical treatment.  But it is purchased separately from the car insurance.  Typically it is provided by an employer, or you buy it yourself from the insurance company.

Answer 4

It does exist.  It's called a service plan.

Answer 5

Unfortunately, they do not make cars like they used to.  They are made to be cheap, and not last very long.  "Back in the day", cars were made to last longer.  I still drive a 1970's car that is in perfect condition.  It even has better gas mileage than newer cars.  However, as each year passes it gets increasingly more difficult to find parts.

If cars were built like they used to be, what you have suggested may just work.  Maybe some day a car company will go back to the old way of making cars.  I certainly would buy one!  Although, I'd never buy a new car ... I'd wait until they were 10 years old.

Answer 6

I think what you're really thinking of is an extended auto warranty.  That would pay for many car repairs in the method you've described.  Their cost is based on the age and mileage of your vehicle, and usually will offer coverage until you reach 100,000 miles.