The Many Benefits of an Extended Auto Warranty
Extended auto warranties have evolved over the last 10 years and they Extended auto warranties have evolved over the last 10 years and they now offer more protection and coverage than ever before. Not only do they pay for any work done on your vehicle but they offer other services like towing, roadside assistance, car rental and more.
With cars being more sophisticated than ever car repairs are also through the roof so having a protection plan just makes sense. But just in case you need more convincing here are more benefits with an extended auto warranty.
Remember that not every company can offer these services, but we only recommend the companies that offer the best in benefits so that you can get the most value with your purchase.
Free Road Side Assistance and Towing.
You never know where you are going to break down and any car warranty company worth it’s good name will offer free towing. This alone can cost over $200 depending on where you need to be towed. But just knowing you have this free service available offers a lot of peace of mind in case something happens while you are traveling.
Free Lock Out Assistance:
This really has nothing to do with breaking down, but it is a handy feature that some warranties will offer you. Any time you lock your keys in your car, it’s a bad thing, and it’s not a planned thing, so having this free service along with your warranty will be a life-saver when you have to use it.
Free Car Rental:
A lot of dealerships say they offer this, but I have read too many horror stories of people having to pony up the cash themselves after renting a car for a few days while their car was in the shop. So make sure you read the fine print. A good company will give you the money for any car rentals you have to make because of wear and tear or mechanical breakdown of your vehicle. These are usually the more expensive plans and sometimes you have to wait for reimbursement but having something to drive around while your car is being repaired is essential. Also, if you need a car rental it probably means your vehicle needs a major repair and your extended warranty just paid for itself.
This can vary from company to company, but some warranties will charge you a deductible every time you go to the shop. These are usually some of the cheaper contracts, but you can also make sure that you never have to pay a dime. Read the contract details or ask for a $0 deductible. If the company does not offer one, it’s time to move on. Some deductibles will be $50 to $100 and this is an option you can take if you want a more affordable warranty policy. What these deductibles mean is that you will only have to pay $50 (for example) and any expenses beyond that will be paid for by the warranty company or insurer. There is always the option for a $0 deductible but the cost is usually a little more, so weigh the pros and cons here.
Go to ANY licensed Repair Shop
This is one huge advantage to buying an extended car warranty directly from buying one from a dealership. Dealerships require you to go to that dealership or a dealership through the same manufacturer in order to keep your warranty valid. Well do you really know where you will be when you break down? If you are stuck in the middle of nowhere you will have to get the work done at a local shop and pay for those costs yourself. A good extended warranty allows you to visit any ASE certified repair shop in the U.S. and Canada and get free repairs done. And there are over 30,000 licensed repair shops in the U.S. alone.
You can pay for your warranty coverage in one lump sum or split it up into easy monthly payments. With a good warranty company you will not have to pay any interest for this convenience and the cost can be as low as 50 cents a day. Not a bad price for peace of mind while on the road.
When you sign up for an automobile warranty you want it to be effective that very minute and not a few weeks from then. Most offer this, but it’s another thing to watch out for with those shady companies. Often you will need to have an inspector come by and look at the car to make sure it is operational and in decent shape, but the great companies like Carchex will get his done quickly so you can get coverage on your automobile right away.
A Used Car Warranty is Able to be Transferred to a New Owner:
You might say, “Hey, why do I need a warranty that will be able to be transferred to someone else? If it’s not my car any more what do I care?” Well you WILL care when it’s time to sell that car and a HUGE selling point is that this used car in your driveway has a warranty on it that the new owner can use as well. Most private sellers do not offer warranties so you will have an edge when selling and can even incorporate that into the price. It makes a big difference when you are selling a car in the newspaper or online and it comes with an extended warranty from a reputable company. And only the good companies will allow you to transfer the warranty to another owner at any time.
100% Money- back Guarantee:
The good warranties will give you all of your money back if you have not made any claims within 30-60 days. Sometimes this time frame is less, but I would never trust a warranty that would not give me my money back. There might be a reason they won’t give the money back, and that’s because they are in the hole and are acting more like a ponzi scheme. Always read the reviews from other users to see if the money back guarantee is really legitimate. If the company does not even advertise a guarantee than you should avoid them altogether and find a company that has an excellent reputation for customer service like Carchex.
Pays the Mechanic Directly and Not “Promises” to Pay:
Believe it or not, with a good used car warranty you will not have to pay the repair shop and then wait for a check in the mail. They will pay the shop directly (make sure you call them first) and you can just sit back and relax. Never trust a company that will promise to pay and then uses every excuse in the book not to. Knowing it’s paid for in advance is the only security in this situation. Usually, all you have to do is call the warranty company to report a claim and then find a licensed repair shop. Let the warranty company talk to the repair shop on the phone and they will pay the shop directly via credit card. Avoid any company that promises to reimburse you. Half the time, the check will never come.
We recommend getting your free car warranty quote here.