We’ve all heard the saying “you get what you pay for” and this is a certainty where auto warranties are concerned. It is important to note that all auto warranties are not the same, and when you buy a vehicle you will automatically receive a certain amount of coverage for a specific amount of time or mileage. Once that time expires, or the vehicle reaches the mileage limit, the owner is going to have to pay for every repair “out of pocket” or can go to car warranty.
This means that looking for additional or extended auto warranty coverage is a great choice for anyone who intends to keep their vehicle for a very long time and also for those who put many miles on their vehicles each year. When looking for an extended auto warranty it is important to note that they can be offered by the dealer who is selling the car or by an insurance company that specializes in extended warranties.
Which is the best choice? Well, most insurance and automobile experts recommend the warranties offered by insurance companies because they tend to be more affordable and more comprehensive. While many dealerships will offer their customers the chance to extend the warranty at the time they buy the vehicle, no one should panic and jump right into this plan because they will have until the end of the initial warranty period to make such a decision.
What should someone look for in a good extended warranty? Well, you want it to be a valuable asset and provide financial protection, so this means it needs to offer as much coverage as possible. In the language of warranties, that means it will need to provide mechanical breakdown coverage AND wear and tear coverage as well. This is because some policies look at different parts and systems in different ways, and the only way to be absolutely certain that coverage will be provided is to arrange for everything to be covered under the extended warranty.
Another thing to look for in an extended warranty is a no-cost deductible or a single deductible per visit to the garage. This is because some warranties allow for every part repaired to be charged a separate deductible. This means that something as simple as work on an exhaust system could see five or six deductible fees tacked on to the bill.
Finally, if you are keeping the vehicle for a long time and plan on selling it rather than trading it in you may want to ensure that the extended warranty is transferable to the next owner. This is something that adds value to the car and protects you from a buyer trying to claim that any flaws cost them large “out of pocket” expenses.