When buying an extended car warranty, as in so many other aspects of life, it’s important to be fully informed before making your purchase. Before making the commitment to a provider, take the time to fully explore the ins and outs of the various coverages.Many coverages look similar; you should request copies of every contract you are considering, and then compare them to determine what best fits your needs. If a warranty seller will not let you see this before you buy then you should be looking elsewhere.
Some Important Questions for you to consider:
Do I really need an extended auto warranty?
There are many reasons to purchase extended coverage. Your vehicle is one of your biggest investments. The warranty will ensure it is always in the best mechanical condition. With the complexity of today’s vehicles, one major repair often costs more than the warranty itself. So from a financial standpoint, it definitely makes sense to have the extra coverage on your car.
When should I buy coverage?
With most extended warranties, you’re never buying double coverage. Your extended warranty is less expensive the earlier you purchase it. As the vehicle ages and accrues mileage, the price for protection rises. Prices may also rise due to increasing labor and parts prices. You will be offered the lowest price and longest term the newer your vehicle is. The company usually takes into account the time left on your manufacturer’s warranty, if any, and takes over after it expires. So you can save money by locking into today’s low prices and protecting yourself from tomorrow’s rising repair rates.
Who will I call to authorize and pay my claims?
Make sure you know the company who will be authorizing and paying your claims. You should look for a company that handles all aspects of claims and allows you to use the repair facility of YOUR choice (dealer, national chain, local mechanic). The claims should be paid immediately to the repair facility via corporate credit card, with no need to lay out money for repairs. They should cover all parts, labor and even sales tax (if applicable) with no limit on the number of claims you may have.
*IMPORTANT* Make sure that the company you are considering will pay the full, posted labor rate to the repair facility and not just the hourly rate designated by the repair guides. Also, review the contract to verify if it is the administrator’s sole discretion as to the types of parts that can be used when repairing your vehicle. These hidden clauses in extended car warranty contracts usually mean out of pocket expenses for you later on.
Are there any warranty provider that you would recommend?
We’ve researched this topic pretty heavily and we do have a company that we have been working with for quite some time. It is called Warranty Direct and they are one of the pioneers in the online warranty business. They offer up to 40% savings over dealer prices, so it’s a great place to start.
Other Questions to Consider
What is the company’s track record regarding customer service?
What is the company’s customer experience?
How long has the company been in the warranty business?
How long have they been selling warranties online?
Extended Car Warranty – Summary
Check sites such as the Better Business Bureau and WebAssured.com to see what other customers are saying about their experience with the extended car warranty company just to make sure you’re dealing with a reputable entity. See what rates they are offering you and compare quotes from different companies to see who is offering you the best deal.