What You Need to Know When Buying an Extended Warranty
Last week, we discussed why you may want to consider purchasing an extended warranty. If you have decided that an extended warranty is the right choice for you, there are several important factors to evaluate before making your purchase.
Where to Buy
While buying an extended warranty online is an option, it may not necessarily the best choice. We recommend purchasing the warranty from the same place where you plan on having your car serviced, if possible. This way, the repair facility has a vested interest in your satisfaction and can act as your advocate if there are any uncertainties or disputes regarding the contract or coverage.
Company Underwriting the Contract
One of the primary considerations when buying an extended warranty is the company that is underwriting the contract. It’s essential to choose a reputable and well-known company that is endorsed by repair facilities. Remember, you get what you pay for. If you come across a significantly cheaper warranty, there is usually a reason behind it. These cheaper options often have poor customer service, delayed claim approvals, and extensive “fine print” that limits coverage. Companies like AAA, Zurich, CNA, Endurance, CarShield, and Allstate are just a few examples of companies with a good reputation. Be cautious when selecting an extended warranty company, and keep in mind that purchasing from the same repair facility where you plan on having your car serviced can help ensure a reliable choice.
Contract Details
When reviewing extended warranty contracts, look for contracts that are “exclusionary” rather than “inclusionary.” Exclusionary warranties list what is not covered, meaning that anything not specifically excluded in the contract is covered. It is crucial also to ensure that there are no significant areas of the car excluded from coverage. This will help you avoid any surprises or disappointments when filing a claim.
Additionally, pay attention to the terms and conditions of the warranty, including the duration of coverage, mileage limitations, and any deductibles or fees that may apply. Understanding these details will help you make an informed decision and avoid any unexpected costs or limitations.
Finally, it is always a good idea to read reviews and seek recommendations from trusted sources before purchasing an extended warranty. Hearing about others’ experiences can provide valuable insights and help you make a confident decision.
Remember, an extended warranty is essentially an insurance policy for your car. By carefully considering where to buy, the company underwriting the contract, and the contract details, you can ensure that you are making a wise investment in protecting your vehicle and your peace of mind.