Why Should I Consider Purchasing an Extended Warranty for My New Car?
If you're buying a new or used car, you may be wondering whether an
extended car warranty is
for you. An
extended warranty picks up where factory warranty leaves off by, well,
extending the warranty past its initial date.
Extended car warranties are not car insurance, but you can
think of them as major medical insurance for your new or used car and sanity
insurance for you. If you plan to keep your car longer than the
car warranty
bundled with the new or
used car package, you need to consider
purchasing an extended car warranty for your car.
A little money on the front end with an
extended car warranty can save a lot of money on the
back end when you begin to experience major problems.
Do You Qualify to Buy an Extended Warranty Online?
You can purchase an
extended warranty online for new cars and used cars less than 10
years old with less than 100,000 miles. Older cars or used cars with more mileage
do not qualify for an
extended car warranty. If you find a company that offers
extended car
warranties for either of these two situations, run, don't walk away, as fast as you can.
Should You Buy a Car Dealer's Extended Warranty?
You can purchase a
car dealer'es extended warranty when you purchase your
new or used car. Don't do it. Not all warranties are created equally and you'll usually get "less"
extended warranty through a dealer. The
car dealer is the
middleman in the transaction between you and the
extended warranty company.
Car dealer's extended warranties are one of their most lucrative profit centers.
While a dealer may settle for 5% profit on the new car, the dealer will often net
a 100-200% profit on the
extended car warranty. Cha-ching!
Extended Warranty Companies: Deal with Them Directly
It's best for you to purchase and deal directly with the
extended warranty
companies for another reason. When you are the customer, only you can cancel the coverage. If you choose not to buy from an
extended warranty company and buy
the
car dealer's extended warranty and the dealer is responsible for the
payments, there is nothing to stop the car dealer from canceling your coverage
without your knowledge and consent. Reputable car dealers would not cancel your
coverage, but you're only as safe as your car dealer is reputable. The savings and
safety dealing directly with the
extended warranty company provides will bring peace of mind.
Research Extended Warranties Online
The most important thing you're looking for in an
extended warranty company is an
established business with a sterling payment record. To research a reputable
extended warranty company online, visit
WarrantyDirect.com. They have an outstanding reputation both in the industry and among their satisfied
customers.
Extended Warranty Types
Extended warranties are available with varying degrees of coverage. You'll need to
compare the exact policies available for your car, but in general,
extended
warranties fall into the following categories:
- Bumper-to-Bumper Extended Warranties offer the most extensive coverage
available. These extended warranties include wear and tear and cover everything that's not on the excluded list.
- Named Component Extended Warranties cover named systems, including wear and
tear.
- Major Coverage Extended Warranties are usually available for used cars and it
does not cover wear and tear.
Some
extended warranty packages include all of the services that you would pay for
road coverage, so if you currently belong to an auto club, you may be able to cancel. In addition to
selecting only the coverage you need or want, you can further economize on your
extended
warranty by selecting a deductible to suit your budget. Higher deductibles mean lower
rates.
Extended Warranty Claims
The
extended warranty companies have determined that most of the claims filed
within 30 days of purchasing the policy are fraudulent. Barring some major catastrophe for which you
have thorough documentation, don't file a claim within 30 days of purchasing the policy. Always get
authorization before having any repair work done on your car. If you don't, your claim could be
denied.
Extended Warranties: Extend Your Peace of Mind
Follow the tips above for
purchasing an extended warranty for your car and you'll
gain peace of mind knowing that you won't have to pay for major car repairs.
