An extended warranty may seem like a smart purchase if your manufacturer’s original warranty is about to expire or you have just purchased a used car. The extra protection may give you peace of mind, and many companies offer warranties that include roadside assistance and rental car reimbursement. But it’s important to read the fine print and understand exactly what you are purchasing. Those hefty prices can quickly add up, and you might not get the return on your investment that you expect.
When choosing an extended warranty, consider the type of coverage you want and how long you plan to keep your car. Then compare quotes and terms from different providers. Look for a reputable company that has been in business for a while and has good customer reviews. Check whether the company is BBB-accredited and if it offers transparent pricing, as well as a simple process for filing claims.
You can buy an extended warranty directly from a dealer or through an independent third party. It’s important to shop around, since dealerships often inflate the price of the warranty to earn extra income. You should also avoid unsolicited robocalls from warranties companies, as they are likely to be scams.
Some warranties may require you to use only certain repair facilities or replace parts with the same brand as the originals. Others may have a depreciation clause that reduces your payout based on the vehicle’s age or mileage. Also, be aware that you’ll pay a deductible, similar to car insurance, when you need to submit a claim.
Considering all of these factors, an extended warranty might not be worth the money for you. In fact, some people have found that it’s more prudent to save for a rainy-day fund than spend thousands of dollars on a warranty they never end up using.
When shopping for an extended warranty, check the provider’s reputation and the number of satisfied customers. A good way to do this is by looking up the companies on WalletHub, which rates them for affordability, transparency, and ease of use. It’s also a good idea to check how much each warranty company is backed by financial ratings firms, such as AM Best and the Better Business Bureau (BBB).
When choosing an extended warranty for your car, be sure to research the various options available and read the contract carefully to make sure you’re getting what you need. And remember that it’s important to choose your coverage before your original manufacturer’s warranty runs out. Then, you’ll know you’re paying a fair price and getting the most value from your purchase. extended warranty for my car