How to Choose Automobile Extended Warranty

When choosing an automobile extended warranty, there are several factors to be considered. Unless you do your due diligence, you will end up paying a bunch of money to a useless extended warranty policy. With ever increasing labor rates and automobile repair costs, it is important to buy the right extended warranty coverage for your vehicle.
The following steps describe the process of shopping and choosing the best automobile extended warranty.

Instructions

1

Get the right coverage. This is the most important part of all. Some automobile extended warranties cover only the mechanical break down, but not the wear and tear. Since lots of repairs are caused due to normal wear and tear , you should go for an extended warranty that covers both.

2

Look at what is offered in the warranty policy, not just the price. Lot of automobile extended warranty policies do not cover ABS breaks, overheating etc. You certainly need coverage for these. So, just don't fall for the price alone. Carefully review a sample contract BEFORE signing a contract with any extended warranty provider.

3

Check the strength and ratings of the company that underwrites your automobile extended warranty. Check BBB or A.M Best ratings for that company. A low rated company may cause trouble in processing the claim or it may not even be there when you have to file a claim.

4

Buy an automobile extended warranty that is transferable. It increases the re-sale value of the car.

5




Compare and shop. Normally online warranties are much better than dealer warranties. With online automobile extended warranties you avoid dealer who is playing middle-man, costing you more. Ask for free quote and compare the price and coverage from several companies.

6

Go for zero deductible warranty. Otherwise you will end up paying deductible for each visit or each part repaid. This policy may cost you little extra, but it is worth it.

7

Get the freedom of repairing the car in any shop and insurance company should work with the shop directly. If the company expects you to pay first then send the bill for reimbursement, stay away form that company.

8

Cover towing service, rental car etc in the automobile extended warranty. When your car breaks you need these services badly. However, if you have these covered elsewhere, such as AAA membership etc, don't double pay for the same coverage.