Imagine a world without warranties and insurance. Your life would be a constant barrage of the bill after bill. Thankfully, we do have such tools that allow us to save money and have peace of mind as well. An extended auto warranty is a great option for preserving your car’s functionality. Many people are confused as to what this tool is exactly. Hopefully, some of your questions will be answered.
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An extended auto warranty serves as a contract between you and a car warranty provider. For example, if you buy your car warranty, the company that is contractually obligated to do so must pay a great bulk of your car’s repairs. Keep in mind; this is only an auto warranty, not an insurance policy. An extended warranty can also be purchased for used cars.
Here are 10 basic tips for purchasing an extended auto warranty:
1. Research the Average Cost of Extended Warranties
This one’s a no-brainer. You should call several companies (or peruse their websites) in order to get a feel for the average cost of extended auto warranties. That way, you won’t be shocked when you see the final tally.
2. Research the Business
It is very important that you avoid shady dealings at all costs.
3. Read the Fine Print
No matter what type of auto warranty you get, be sure to read the contract before you sign it. If the salesman mentions a special feature in passing, make sure it’s on the contract. If not, make him/her put it on the contract. You should also save a copy of the warranty contract for your records. Make sure that it covers every part of the car that may need servicing.
4. Find out the Deductible
Most extended warranty providers may not pay for everything. In this instance, you must know your deductible. A deductible is the amount of money that you, the consumer, must pay for at the time of the car repair. Usually, deductibles are between $50-$200. Make sure you stipulate that your deductible is to be on a per-visit basis, not repair-based. It could save you a pretty penny.
5. Make Sure the Auto Warranty Contains “Extras”
An extended auto warranty should contain special perks like roadside assistance, car rental in case your vehicle is unavailable overnight, free over-the-phone car assistance, and much more.
6. Buy the Warranty Early
It is imperative that this warranty is bought early, preferably right when you buy the car. The longer you decide to wait, the higher the warranty price will become.
7. Investigate Repair Shops
A repair shop may reject your extended auto warranty provider simply because the provider may ask the designated shop for an itemized estimate on the total cost for repair. If the shop refuses to hand over the list to the provider, it could mean that the repair shop is trying to take you to the cleaners. Run!
8. Avoid Cheap Warranties
These types of providers don’t provide adequate service, are hard to contact, and just may be an outright scam.
9. Used Autos Also Benefit From Extended Warranties
Even though the company may not cover you under its wear and tear plan, it is important to get an extended warranty for a used car as well. Many providers will cover your used car under mechanical failures, however. Usually, companies cover any car up to 100,000 miles.
10. Don’t Confuse the Extended Warranty with the Manufacturer’s Warranty
The manufacturer’s warranty lasts for a limited time. The extended version lasts for a few years more. Make sure that you figure out when the manufacturer’s warranty ends. That way, you won’t miss a beat when it comes to repairing payments.