Your Considerations When Buying An Auto Extended Warranty Plan

January 3rd, 2009 by Web Author | Filed under Automotive and Mechanical.

Most adults use comparison websites to look up different options and prices on consumer goods or services. You can check AutoWarrantyResearch.com or AutoWarrantyShopper.com to get an idea of who’s offering an extended warranty plan. (You can also check a site like RipOffReport.com to see who NOT to call!) Once you have a few companies to look up, it is recommended that you follow several shopper savvy tips to ensure the best deal for you and your investment.

First of all, be sure you’re dealing with a solid company. See that they’re listed in the Better Business Bureau or Web Assured, and that they have years of experience. For example, Warranty Direct has been in business for 26 years and NWC have been in business for 20 years. Read consumer comments and testimonials, check to see if the company services any dealerships and ask if they have a reinsurance program, which means they will be good for the money, even if many people are filing claims all at once.

Once you’ve purchased your extended warranty plan, understand that there are several tips you must follow to avoid your claim from being denied, which can be really agonizing if you’ve paid thousands for coverage! One rule of thumb is to get approval from your warranty company before repairs are done. Sometimes, your company may want to inspect the car for themselves before work is done to protect themselves against fraudulent claims. Some warranties require oil changes every six months and if you don’t follow the rules, they won’t pay for your repairs! Similarly, always pull over if your car overheats. Some warranty companies won’t pay for damage caused after overheating. If you don’t get your fluids topped up or your worn gaskets replaced in a timely manner, then your claim may also be rejected. In some cases, the mechanics have to rip your car apart to get to the damaged part, which may not be necessarily covered. If you have added alterations, like unauthorized tow hitches, then you may also not be eligible for your warranty any longer.

There are some common lies that dealers tell consumers to get them roped into an extended warranty plan prematurely. Remember, they are salesmen and they’re out to get the highest commissions and the highest interest, thus gaining them more profits. One excuse is that “the loan won’t be approved unless you buy the insurance.” Be aware that most auto extended warranties can be returned within 30 days with a 100% moneyback guarantee, so if you’re coerced, you can always rid yourself of the plan if you find a better deal elsewhere. Another lie dealers tell is that “you must buy now or you can never get extended warranty coverage.” This is simply not true. The problem with buying from a dealer is that they like to draw up slick pseudo-contracts without showing you exactly what’s covered before you buy. If you look online, then you can go directly to the source and see what you’ll be getting.

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