An extended car warranty will protect you if your car breaks down. To illustrate its purpose, say you were driving when the water pump in your automobile fails. If the manufacturer’s warranty expired you would be liable to pay for the repair, which can be costly especially if it’s for a major component. Where extended auto warranties factor in is they take the place of a manufacturer’s warranty after it expires and can provide you with the financial protection you need when a covered part breaks down. This will reduce the likelihood of you incurring a huge repair bill that could derail your finances easily.
Where to Buy
If you are looking to buy a vehicle service contract you can either purchase them at the time you buy your vehicle at the dealership or online with an extended auto warranty provider. It’s important to note that often you might receive a higher price at a dealership compared to online providers so it’s important to comparison shop to find the best price for you.
Find a Reliable Coverage Provider
Another important aspect you want to examine is the reputation of the provider offering the policy. Since demand for these plans have skyrocketed many providers are offering these policies, but they might not have the best reputations. Look for the reviews online to find the most reliable company.
Has Your Auto Warranty Expired?
Buying Warranty for a New Vehicle
One unique component of extended auto warranties you might not know is that you can purchase them for new and used vehicles. Typically, if you buy a new vehicle, these policies will serve as enhancements to your manufacturer’s original warranty, as they will extend them. This is an incredible benefit to consider, as it will give you a longer term of coverage for covered parts under the plan. In addition, many of these policies come with benefits you might not receive under traditional manufacturer warranties such as travel reimbursement for meals and lodging if your vehicle breaks down during a trip. Therefore, if you are looking to buy a new vehicle, don’t rule out purchasing an extended auto warranty.
Buying Warranty for a Used Vehicle
Meanwhile, if you are buying a pre-owned vehicle, unless its manufacturer certifies it, then it won’t likely come with a warranty. If this is the case, then an extended auto warranty would be perfect for you to consider because it can give you coverage you need in the event your vehicle breaks down, thus helping you to avoid huge repair bills.
Know What's Covered
When you are ready to buy a vehicle service contract, it’s important that you first look at any vehicle qualifications the provider has. Usually, they will cover your vehicle if it’s under a certain amount of miles and is relatively newer (meaning it falls under their specified model years covered). If your vehicle qualifies, next you’ll want to compare different coverage options the provider has available. This is extremely important to examine because this informs you which parts the provider covers under each plan. In even the basic plans they will usually cover the major components such as the transmission, seals and gaskets and drive axel assembly. Furthermore, the more comprehensive plans will cover a larger list of parts and usually come with additional features such as roadside assistance and travel reimbursement benefits. Therefore, before selecting the best policy for you it’s imperative that you determine your needs for the plan, understand which parts each plan covers and then select the one that best fits you. This ensures you receive the maximum benefits of the warranty.
Before committing to a warranty, one of the most important things you’ll want to examine is how the provider handles claims. As an example, say you have to bring your vehicle to the shop for a covered repair. With some warranty companies, they will want you to pay for the repair and then you send them the bill for reimbursement. There are several problems with this type of service from your end. One, if you don’t have the money upfront, what’s the point of the warranty since you don’t have the money to have the repair done? Two, if you do pay and send the provider the repair bill it might take them weeks to repay you resulting in a big expense that might be detrimental to your finances. Conversely, many reputable warranty providers will pay for the approved claim with no out of pocket expense on your end. Therefore, it’s important to investigate how the provider handles warranty claims before committing to a plan, as you don’t want to end up having to pay up front.
Has Your Auto Warranty Expired?
To Sum it Up
Ultimately, extended auto warranties are great policies to consider because they can give you the financial protection you need in the event your vehicle breaks down. By doing your homework ahead of time and researching providers based on price, types of policies, how they handle warranties and their reputations, you can find the best policy for you.
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