If you want to buy extended car warranty you shouldn’t decide by taking into consideration only the price that you will have to pay. You need to know that what you get is what you pay for as the most affordable ones are the riskiest. Those companies that undersell the competition too much are definitely hiding something and there are big chances that they will reject your claims if something should happen to your car and if history thought us something, it will.
It is highly recommended that you should purchase the warranty right from the source, without any intermediaries. Most of the extended warranty contracts available will cost you less and will be more comprehensive in comparison to what the dealer offers. Get one that includes coverage for wear and tear also, not only breakdown.
We advise you to use a well-funded and insured vehicle warranty administrator that will deposit part of your purchase into the “Claims Reserve Account” which is insured in order to guarantee sufficient funds to cover a claim.
You should know that the insurance companies should refund you the total amount of money within 30 to 60 days if you are not happy with the car warranty. Pick one that is transferable so that when you decide to sell your car, you will still offer warranty for it, which means that it will have a better resale value.
In order to avoid getting the warranty claim denied, you will have to be prepared, which means that the approval should be obtained before the repairs are done. If the company that sells you the extended vehicle warranty wants to inspect the automobile for pre-existing conditions before they hand you the warranty, you should let them do that so that if anything goes wrong after that, they will not be able to claim pre-existing conditions and reject your claim as they have inspected and approved the car before the malfunctions occurred.
Avoid claim denial by changing the oil of your car every six months as this is the requirement from most of the companies that sell warranties. If the engine stops working due to the reason that you have not changed the oil, you’re the one who will pay for the repairs. In addition, the damaged caused by continuing to use your car after a failure is not covered so if your vehicle overheats, you’ll have to pull over immediately.
If you buy extended car warranty for a pre-owned vehicle and the company finds out that the problem was already there, they will not cover you. Also, avoid installing aftermarket components as they will void your warranty.
In the end, it is up to you to decide whether you need the extended warranty for your car. However, you should know that the cost to fix a car is increasing and without a warranty to cover for the repairs, you’ll spend a fortune. Think of a car warranty like a form of insurance. If you don’t have it, you’ll have to be extremely careful. Some people buy these warranties as they know that once the manufacturer’s warranty expires, some things stop to work and even though we are talking about minor defects, like an antenna motor, you still have to pay up to $1,000. Such a minor yet very expensive failure can cost as much as you would normally pay for the entire extended car warranty.