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Extended Auto Warranty Tips
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The right warranty will protect your investment and save you money!


Deductibles & Coverage
Generally companies that offer extended vehicle warranty contracts offer a variety of service plans with deductibles ranging from $0 to $100. Read through all the plans and decide which one is right for you.

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Extended auto warranty tips

When buying a warranty, be sure to read and save the warranty documentation. If the company tells you a feature of the warranty that isn't in the contract, make sure to get it in writing. If you buy a warranty online, save the contract and print out the web pages from that company's site.

Research the company that sells the warranty. This can be as simple as checking their status at the Better Business Bureau. Information for online companies can be found at www.bbbonline.org/consumer and information on traditional companies can be found at www.search.bbb.org/search.html.

Bumper to Bumper
Few extended vehicle warranty plans cover absolutely everything on a vehicle. Carefully read the warranty contract and find out exactly what is and what is not covered. If the contract says it covers everything except for A, B, and C; that's a lot more coverage than a contract which lists 10 or 20 items which are covered.

Car Rental
Does the plan provide a rental car if the repair will keep your vehicle in the shop overnight? Many auto warranties do but some will not.

Dealership Plans vs. Online Plans
Take time to compare plans. Dealerships offer extended vehicle warranty plans that are comparable to online offers. Most of these dealership service contracts really are partnerships with other warranty companies. The dealership just tacks on an extra fee for signing a client up. If you are considering a dealership plan, compare it to direct plans available online for a potential cost savings.

Deductibles and Coverage
Generally companies that offer extended vehicle warranty contracts offer a variety of service plans with deductibles ranging from $0 to $100. Read through all the plans and decide which one is right for you. You can save a lot of money by giving up some of the extras like car rentals and by going with a higher deductible.

Food and Lodging
If your vehicle becomes disabled far from home and the repair is covered under your extended vehicle warranty, you may receive reimbursement for lodging and meals. These plans usually stipulate you must be at least 100 miles from your residence in order for this to apply. This can be an important feature for people who use their vehicle frequently for business.

Make sure you can renew your extended vehicle warranty contract. Many plans may be renewed for continuous one-year terms for as long as you own your vehicle.

If you haven't purchased the vehicle yet, check to see how much warranties run on various makes and models. If you are trying to decide between two cars, there may be a difference in the price of the extended vehicle warranty plans. A less expensive plan usually means the vehicle model has a better repair history.

Roadside Assistance
Similar to an AAA policy, some extended vehicle warranty plans offer a roadside assistance program. Benefits may or may not include: emergency road service, towing, mechanical first aid, flat tire service, battery assistance, gasoline delivery, fluid delivery and emergency lock-out service. Before signing up for this type of a program, make sure there is a 24-hour toll free assistance number.

Many extended warranty plans allow you to transfer your coverage to a new owner when you sell your vehicle. This can increase a vehicle's resale value.

Wear and Tear
Many extended vehicle warranty plans cover parts which break as well as those which wear out. Again, be sure to read the contract to understand the differences and how it may impact your final cost. This is perhaps the most important feature of a coverage plan. The wear and tear feature gives the consumer the peace of mind that they do not have to wait for a complete breakdown in order to get their vehicle repaired. Most parts on an automobile will wear over time and indicate signs of malfunction before completely breaking down. Wear and Tear is contractually defined as the gradual reduction in operating performance due to normal wear and tear. An example of wear and tear is the suspension system. Due to the stress of driving on the suspension, the parts wear out. Waiting for a suspension part to break completely could be quiet risky and dangerous. Wear and tear allows a client to get the vehicle repaired at the first sign of malfunction.



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