If you are unfamiliar with extended auto warranties, how they work is they protect your vehicle after your manufacturer’s warranty expires. Known also as vehicle service contracts, they can pay for major costs associated with a breakdown of a major component in your car. You can buy these policies from auto dealerships or through the warranty provider. If you choose this option, here are some shopping tips to help you select the right provider.
First, it’s important to comparison shop between different providers. One of the best ways to do this is to use AutoWarrantyResources.com, as they are an independent company that rates warranty providers. Along with researching the reputation of these providers, it’s ideal that you find out what type of coverage plans they offer and how much they cost. Armed with this information, it can help you choose the right provider.
Another thing to keep in mind is you can buy extended auto warranties for both new and used vehicles. While your new vehicle is under the manufacturer’s warranty, by buying a vehicle service contract it will extend that coverage to protect you when your original warranty expires. Meanwhile, for used vehicles, there may be criteria your car has to meet to receive coverage. It’s important to check with your policy provider to see if they have any restrictions on the vehicle’s age or miles driven to make sure you are eligible. Furthermore, if you buy a used vehicle from a dealership, they may not offer a warranty on it. With this in mind, it’s important to buy a vehicle service contract to give you protection in a case a breakdown occurs.
What’s great about extended auto warranties is they can cover a wide range of parts depending on the plan you select. Before you buy a policy, it’s important to go over all the parts they cover. Most plans will cover major components such as your vehicle’s engine, transmission, drive axle assembly and seals and gaskets. The more comprehensive plans may also give you added benefits such as roadside assistance. With roadside assistance, you can have a technician assist you with normal breakdowns that may occur on the road such as a flat tire or a dead battery. In some instances, it can even cover your towing and other travel expenses you incur as a result of the breakdown.
Lastly, it’s important to check your policy for two key items. First, you should see how your warranty provider handles repairs. Do they require you to go to specific shops or can you choose? Next, you should examine how they process payments on claims. Some policies may require a small deductible that you must pay before they pay the rest of the bill while others may not require a deductible. It’s important that you stay away from plans where you have to pay out of pocket, as it can take weeks to receive payment back from your provider.
Overall, extended auto warranties are great ways to protect yourself from large expenses that occur due to vehicle breakdowns. By doing some research ahead of time and carefully going over your policy, it can help you select the best provider and understand the coverage you will receive.
