With the popularity of the continuing coverage agreements for automobiles, there is also a lot of competition between companies that offer them to provide the best prices so that they get more of the customers. Although under normal circumstances you can expect to benefit from competition between companies, there are some details that may cause your continuing coverage agreement to be more expensive.

How reliable is your vehicle?
There are certain types of vehicles that are known for needing frequent and/or expensive repairs. To find out about your vehicle, go online and search the reliability of your car's make and model. If it falls into the unreliable category, you can expect to pay more for coverage. The company that is offering the agreement knows that they have a greater risk of having to pay for claims on an unreliable vehicle and they are going to be sure you pay enough to cover the difference.

How much mileage have you put on your vehicle?
Even a vehicle that is fairly new is more of a risk if you have put a lot of mileage on it. The more you drive the vehicle, the more likely it is to need repairs. Therefore, the higher the mileage on your vehicle, the more your coverage will cost.

Do you have Wear and Tear or just coverage for Mechanical Breakdowns?
Mechanical breakdowns are technically the ones that are the most expensive to pay. If your transmission goes out and you must have it replaced, you can expect to pay thousands of dollars. You might think this is the only coverage you need but isn't so. You may have to pay a little bit more to get wear and tear coverage on your car but it will pay off in the end. Anything that is made of rubber will wear eventually and without the coverage, you will have to pay it for yourself. Also, many companies have the habit of labeling anything possible as wear and tear and then refusing to pay the claim.

Can you choose a deductible amount?
Many agreements have a deductible written into them, either as a per visit fee or as a per repair fee. Usually, the amount of the deductible will determine how much you must pay for the coverage. The higher the deductible, the cheaper your coverage should be. If you are mostly concerned about the repairs that are extremely expensive, then a higher deductible won't be as much of a burden.

Does the company pay directly to the repair facility or do you have to wait to be reimbursed?
If you are required to pay the fees upfront, then you may be in a bind when you have to get major repairs, the reason for getting a continued coverage agreement to start with. Then you have to worry about getting reimbursed and whether the claim will be approved and paid or if it might be denied.

Check out all the details of the coverage before you decide which coverage is right for you and if your vehicle needs continued coverage.