When it comes to car warranties, get knowledgeable in the buying process to ensure you get the best warranty for yourself.
But keep that in mind that not all extended warranties are created equal, and consumers often fall for the trap or buy a plan that ends up not covering what the buyer thinks it covers, wasting their hard-earned money. Many of us have heard stories that prevent some consumers from purchasing a subscription that could benefit them in the long run.
When it comes to extended vehicle warranties, you need to know the buying process. This is what you need to know. Click here for more info.
Who should have an extended warranty?
Before looking for an extended warranty or buying one from your dealer, determine if an extended warranty meets your specific needs. Extended warranties can be helpful, but up to 55% of people who buy an extended warranty don’t even use it, making it essential to think carefully.
Warranty extensions only take effect when the original manufacturer’s warranty no longer covers your vehicle. If you plan to keep your car for just a few years and buy a new one, your extended warranty may only be valid for a short period. In this case, it won’t have much or no impact.
This is especially true for rental cars and is generally waived when the manufacturer’s extended warranty expires, eliminating the need for an extended warranty.
Extended warranties are designed to cover mechanical failures so you don’t have to dive into your funds to pay for them. You don’t necessarily need an extended warranty if you have enough money to cover a significant repair or are good at budgeting.
What should you keep in mind with a good warranty extension?
Many extended warranties are not good at all, and it is easy to fall for a scam or buy a contract that does not cover what you expect from it. Before you sign a contract, it is crucial to understand how much worth it has. Look for a policy that offers:
Choice of repair shop
Some policies restrict the shops where you can get your car repaired. You will want to purchase an extended warranty that will allow you to take your vehicle to a mechanic you can judge and trust. That said, it’s helpful to have a network of repair shops experienced in handling the specific extended warranty.
Some extended warranties limit the amount they pay for parts and labor, limiting your bill balance. Look for a policy that will cover the costs charged by your mechanic.
A good reputation
By asking for references from friends and family, you can determine which policies provide excellent customer service and which do not pay for repairs.
It can be exasperating to discover that, while your warranty covers repairs, you must first pay the cost and then wait for a return.
Some extended warranties offer other benefits, such as roadside assistance, rental car coverage while your car is in store and locksmith services. If these features are important to you, verify with your extended warranty agent or read the policy carefully to make sure they are included. Considering only the maximum coverage available, this is your best option if you decide to buy, as lower-tier policies are usually not worth it.