What to Consider When Shopping for Extended Auto Warranties

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While unexpected breakdowns are inevitable at some point, purchasing an extended auto warranty when your manufacturer warranty on your car expires is a good way to make sure there are never any nasty or expensive surprises. Here is everything you should consider when choosing an extended auto warranty for your vehicle.

Is the Warranty Provider Reputable?

To avoid falling prey to scams, always check the warranty provider’s reputation before purchasing a protection plan. You can get information about the company from sites like CARCHEX warranty reviews or the Better Business Bureau to check the company’s reputation.

If the business you are looking at has been around for a long time, the chances are that the customer service and claim processes are better. Having a long track record indicates that customers are satisfied enough with the company to keep using them.

Do You Need an Extended Warranty?

If you have a lot of disposable income and don’t mind taking risks, then purchasing an extended warranty for your vehicle may not be the right choice for you.

If, however, you want the peace of mind that an extended auto warranty can afford you because you worry about unexpected breakdowns and how much it will cost to pay for them, you should consider purchasing an extended warranty.

Cars that are used heavily when commuting or traveling for your job tend to have mechanical problems more often. Another factor to consider when deciding whether to buy an extended warranty is if you live in a harsh climate – snow, heavy rain, and the excessive heat can all contribute to mechanical breakdowns.

And if you’re trying to save money by buying a secondhand car, there’s all the more reason to invest in an extended warranty.

What is Covered?

When looking at extended warranties for your vehicle, make sure you know all the details upfront. Providers of extended warranties should give you detailed information about their plans and what they cover.

Note that even the most basic of plans can offer a long list of covered components, but make sure you choose the right one for your specific needs.

How Long is the Coverage For?

Most extended auto warranty plans offer coverage from two to seven years. If you bought your car and intend to keep it for a long period before buying a new one, a longer warranty may be the right choice for you.

However, something to bear in mind is that most extended protection plans are 100% transferrable if you decide to sell your car before the coverage ends.

Is the Auto Extended Warranty Transferable?

As discussed above, most extended warranties are transferrable if you sell your car, but not all of them are.

Find out if your warranty is transferrable, and find out what the fee is to transfer it should you need to. Usually, there’s a small transfer fee of around $40 to $50.

If you intend to sell your vehicle, an extended warranty could increase the value of your car, so it’s well worth the investment.

Are There Any Extra Benefits?

With extended auto warranties, there are usually additional perks. Services like free car rental while your vehicle is being repaired and covering accommodation and towing if you get stranded in the middle of nowhere are usually offered.

Most plans also come with 24-hour roadside assistance, so you’ll always know that you can get help when you need it the most.

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