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
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
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.