Extended Warranty, Yes Or No?

The most important thing to remember is that you don’t have to purchase the warranty from the dealer. By going straight to the warranty company, you can save big, sometimes up to 60%.

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If your car is new, you can purchase a warranty which continues the same level of coverage you’re receiving from the manufacturer. Although it won’t begin until your manufacturer’s warranty expires, buying the extended warranty when the vehicle is new means that you will get the absolute lowest price for the most coverage.

If your car is used, whether you bought it from a dealer or a private party, you can still purchase an extended vehicle service agreement which can protect you from unexpected mechanical failures.

First you must decide if you need an extended warranty. Consider whether or not you can afford to repair your vehicle if something expensive breaks today. Since repairing an engine or transmission can easily cost several thousand dollars, one trip to the repair shop can recoup the cost of the vehicle service agreement.

Here are the important items to ask when buying an extended auto warranty:

1. Make sure you are dealing with a reputable company. How long have they been in business? Are they well funded?
2. Does the company administer their own claims? You don’t want your warranty resold to someone else who may or may not be there when you need them.
3. What is the maximum coverage available for your vehicle? Buy the top plan, usually an exclusionary bumper-to-bumper program, which covers so many items that the company tells you what’s not covered rather than what is.
4. Is the warranty company reinsured? This means that if the warranty company is unable to pay their claims, another company will step in and take care of the customers.
5. Can you see the contract before you buy? The top companies are not afraid to show you their terms and conditions before you purchase the vehicle service agreement.
6. Can you take your vehicle to any repair facility? You should be free to choose any reputable repair facility to work on your vehicle, and not be forced go somewhere you don’t know just because they work with that warranty company.
7. How does the warranty company pay the repair facility? Repair facilities prefer to be paid immediately for their work, and not have to wait while “the check is in the mail.” Make sure the repair facilities are paid immediately by credit card.
8. What is the process you have to file to make a claim? Can you just take your car in for an estimate then call an 800 number, or is the process too complicated to follow?
9. Is the warranty transferable? If you don’t intend to keep the car forever, make sure the warranty can be transferred to the new owner.
10. Does the warranty come with convenience benefits? The better ones include free towing, car rentals, locksmith service, etc.

As with everything else, knowing the right questions to ask will ensure that you purchase the right type of vehicle service agreement from a reputable company. If a company can provide the right answers to all of the above questions, you’ve found a winner you can trust. Click here to get a FREE QUOTE on an Auto Warranty & a free evaluation of your vehicles, now and future!