Tuesday, December 10, 2013

Car Extended Warranties - Get the Right One

There are a number of important factors that people should consider before purchasing an auto extended warranty. Unless they do their due diligence, they will often end up paying lots of money for an extended warranty policy that is totally useless. With ever increasing labor rates along with automobile repair costs, it is vital that people purchase the correct extended warranty coverage for their vehicle.

Always Know the Amount

One of the most important things that people should do when they purchase auto extended insurance is to get an idea about their vehicle’s condition. This allows them to determine the right coverage for their needs. They should also assess the deductible that is required for every repair as well as what types of repairs are covered.

If they are on a fixed budget, an extended warranty policy with a deductible that features a bumper-to-bumper extended auto warranty may often be a wise decision. This is true even if the up-front price is a little higher.

Assessment is Always Very Important

Aside from knowing the amount, people should also take a close look at what is offered in their extended auto warranty policy. The majority of automobile extended policies do not cover overheating and ABS breaks. People certainly need coverage for these.

In short, they should not simply fall for the price alone. Instead, they should do a thorough review of the sample contract before they put their signature on any extended auto warranty policy. Besides, it ultimately helps them avoid paying for additional repair costs in the future.

Avoid Extended Warranty Misunderstandings

The first thing that a finance manager will often say to their customer is that if they do not purchase an extended policy at the time of sale, they cannot purchase a warranty. However, this is not true. What this professional really means is that they will not get a commission if you buy it at another time.

Another common misunderstanding is the bumper-to-bumper extended warranty. Many companies pride themselves in providing this kind of policy for their clients. However, there is no such thing as a bumper-to-bumper policy.

The truth that no factory or other warranty will cover a number of wear and tear items such as hoses, tires, brakes and alignments past the vehicle’s first year or 12,000 miles. Aside from that, the coverage length’s starts at the car’s in-service date when people purchase an extended warranty for a new car or one that is under factory warranty.

Always Know Thy Self

Apart from knowing the type of coverage and the amount that they need for their vehicle, people should also determine their driving habits. The first plan that a salesperson often offers is an 84 month or 100,000 mile extended warranty policy. However, this policy is not great for people who are planning to trade their car in or those who drive often for long distances.

Because of this, it is important for people to know what their driving attitudes are. This enables them to ask their finance manager to only present them with plans that are in line with their parameters. Aside from that, it helps them get a quote in writing.

About the Author: Thanks to Ben from Auto Warranty One for submitting this post! Check out his site to learn more about extended warranty options.

1 comment:

  1. One of the major problems everyone faces while making a huge investment in buying new cars is the warranty. Buying a extended warranty for a car can be painful experience.It’s a good idea to take the time to review the items that are covered so you won’t be surprised when it comes times to use it.