Who Should Buy an Extended Car Warranty?

If you routinely keep your new car beyond the warranty expiration date, you are a prime candidate for an extended warranty. If you buy a used car and you want more coverage than the limited auto warranty that comes with the car, you are also a candidate for an extended warranty. Extended warranties extend the service coverage for your new or used car and picks up where the manufacturer or dealer warranty leaves off.

You could pay an auto dealer as much as triple what you would pay a reputable independent extended warranty company for a comparable extended warranty. Further, car dealers may not sell a manufacturer's extended warranty, but instead sell a dealer extended warranty, which requires that the dealer perform all service and automotive repair work on your new or used car. What happens if you move out of town? Buying the same coverage from an independent extended warranty company offers a significant savings and allows you access to convenient auto repair centers if you move — if you deal with a reputable extended warranty company.

What to Look for in an Extended Warranty Company

Your first order of business is to find a reputable independent extended warranty company. Investigate these two key items:

1. Longevity
2. Reputation

Is the Extended Warranty Company a Flash in the Pan?

Avoid brand new extended warranty companies like the plague. Both brick and mortar and online extended warranty companies have come and gone with lightening speed over the past few years. If you need car repair work in the distant future, you want to know that your extended warranty company will still be in business. How will you know that a company is new? If the company is well established, they will scream it to the heavens in their website copy. Another clue is the actual website. Are the design and the copy professional? Visit the Whois website and search for the domain information to see how long ago they registered their domain.

Does the Extended Warranty Company have a Good Customer Service Track Record?

Translation: Does the extended warranty company pay quickly and without a hassle for the customer? Do they have 24/7 customer service available on their website, enabling you to file an extended warranty claim at your convenience? Do they have live customer service available on their website? Are they a member of either the Online Better Business Bureau or Web Assured? Both organizations track customer service complaints filed with their organizations and display complaint resolution results. If they belong to either of these two organizations, they will display a graphic on their website and they may even link to their report. The fact that they belong to these organizations speaks highly of their service.

Where Else Can I Check Out an Extended Warranty Company?

Visit Edmunds.com's Forums and post a question about an extended warranty company or read the discussions to find out how other customers rate their service. From the home page, click Forums on the upper right and on the next page click warranties in the topic group. There's no better place to get the truth than from a customer.

Reputable Online Extended Warranty Companies

If you want to save a lot of time and energy finding a reputable extended warranty company, visit WarrantyDirect.com. They provide the best service in the extended warranty industry and their rates are competitive. At their site you can get a free quote, research a variety of plans and access a host of other information, including transparent facts about the company. They are members of the Better Business Bureau and Web Assured, which indicates that they have excellent customer service track records. You have the convenience of filing auto repair claims online, 24/7 and they offer Live Chat-type help if you need assistance.

WarrantyDirect.com offers a total of six different plans for new and used cars and a package for leased cars.

Extended warranty coverage peace of mind begins by choosing the right company to provide coverage. Using the tips above will put you on the path to peace of mind with a minimum amount of effort. Performing thorough research now will save you from headaches in the future.