Having an extended auto warranty can give you peace of mind simply because mechanical problems a can be covered by the warranty of the car manufacturer. In this manner, you won’t be placed in the situation of having to shell out an exorbitant amount of money for repairs or parts replacements. Before you decide to buy a warranty product from the extended auto warranty companies in your area, there are certain things you should consider before settling for any one coverage provider.
First Things First when Choosing Auto Warranty Coverage
Among the first things you should think about are deductible charges on auto repairs that are part of most extended warranties. There are some extended auto warranty companies that have a zero deductible offer on repairs, but are pricier than other warranty products. You might, however, want to consider this more expensive service if your car model is prone to having repair problems. In such a case, having a zero deductible on repairs will prove to be a more practical and less expensive when comparing it to other warranty options.
Other extended auto warranty companies offer cheaper rates, but may end up costing more in the long run. Some extended warranty companies have contracts that charge a deductible depending on the nature of the repair, while others charge for each visit to the garage. You will want to be extra careful about the latter, as these deductibles can add up if your vehicle needs to be serviced for several issues that may crop at once.
Zero Deductible Fine Print
If you come across offers from extended auto warranty companies with zero deductibles, it would be advisable to go through the warranty’s fine print to find out whether or not you will have to shoulder all repairs yourself and file for reimbursement afterward. This is a perfectly legal option, but it will impact your cash flow. You will still be expected to pay out of pocket for repairs initially. There may even be a risk of having your claim for reimbursement denied, leaving you to foot the full cost of the repairs altogether.
The most ideal coverage from reputable auto warranty companies will include programs that involve full reimbursement of costs for repairs in a timely manner.
When researching extended auto warranty programs and companies, make sure you ask a lot of questions. The auto warranty company representative is there to help clear up any questions you may have. It’s best to ask the questions beforehand. If they offer more than one contract have them provide you with a side by side comparative analysis that you can take home and study a bit.
A Little Background Homework
Use common sense and stay clear of warranties that charge high deductibles with long wait times between out of pocket expenses and warranty company reimbursement. Do some quick homework by checking with the Better Business Bureau and the Attorney Generals Office of your state to see if there extended warranty company has complaints lodged against them. The more homework you do, the better your chances for choosing the right auto extended warranty plan.