Are There Reputable Extended Car Warranties 

Almost everyone has received a spam phone call about their car’s extended car warranty. So much so that it can make you question the legitimacy of all extended car warranties. But how do you determine the real from the false? That is a good question to ask yourself.

Some companies are truly there for their customers when it comes to car maintenance and repairs. Scammers usually just want financial information and make quick and lofty promises. Anything that sounds too good to be true usually is just that.

On the other hand, some companies can offer great discounts on extended warranty plans. All extended warranties are not created equal, and your individual situation has more to do with whether you should investigate an extended car warranty for the vehicles in your home. Here are some tips to consider before you invest in an extended warranty.

Factory Warranty Status

Many vehicles come with a factory warranty when you buy from a dealership or used car lot. The first thing to check is whether any factory or dealership warranties apply to your vehicle. You should never pay for an extended warranty when you have a factory warranty already in place. The factory warranty makes the extended warranty redundant. You don’t need to pay for coverage you’ve already got.

One exception might be to put payments down on a warranty that extends past your factory warranty. Some dealerships may offer this up-front maintenance plan and/or extended warranty when you purchase a used vehicle. Consider carefully before making a commitment. Make sure you’re not paying for coverage you don’t need. Your extended warranty will likely mimic a factory warranty in what it covers and how long it lasts.

Extended warranties range from covering specific electronic equipment in luxury vehicles to covering your car “bumper-to-bumper” or everything in between. The coverage you choose, and the make and model of your vehicle, will largely determine the price of your extended warranty. You may have the option to choose a higher deductible for a lower monthly payment but only do so if you have enough to cover that cost in the event of an emergency.

Financial Benefit

Not all extended warranties are worth the money. Check carefully into what common engine repairs, tires, and routine maintenance would cost without the warranty and compare prices. Don’t be afraid to shop around for quotes from dealerships and local mechanics. Be sure to compare similar extended warranty policies with similar benefits.

Remember, if it sounds too good to be true, it probably is. Financially, you should be able to see whether your car would benefit from extended warranty coverage. An extended warranty should save you a significant amount of money on maintenance and repairs. If you find the costs similar in nature, the warranty is probably not worth it. Prepaying for your maintenance plan or extended warranty can also save you a significant amount of money, so ask about this option as well.

The downside, so to speak, of an extended warranty is that you may never use it. You can see how this isn’t necessarily a bad thing. If you never use your extended warranty, it means nothing has gone wrong with your vehicle. A plausible but unlikely scenario. Chances are you are going to pay for some maintenance for a car older than three years and/or with enough miles to extend the factory warranty.

Like some insurance policies, with an extended warranty, you may end up forking over your hard-earned cash for benefits you never use. That’s why it’s so important to do your homework before choosing a warranty provider.

Customer Reviews

Reviews may be the most important factor, after cost, to choosing your extended warranty. If you’ve decided you are ready for an extended warranty but don’t know which company to pick, you should go to each site’s reviews to help you decide. You can read what real customers experience with their extended warranty coverage and whether they find it worth the money.

You can also tell a lot about customer service from reviews. Look for specific names and locations in the reviews to help steer you in the right direction. Everyone has different customer service needs, so keep yours in mind as you hunt for the best deal. Sometimes, it’s worth paying a little more for that extra special touch. Check out local websites for reviews as well as company-sponsored websites and review hub sites like this one.

Reputation

Reviews and review sites are also a wealth of information about a company’s reputation. You can tell quickly if you would be dealing with a hands-on company or a bargain dealer. Depending on your financial and customer service needs, you should pick a company whose values you can appreciate.

Beware of any site or caller that asks for payment information to process a quote. All quotes should be available online or by phone for free. Also, don’t let anyone talk you into coverage past the life of your car. The last thing you need is to be paying extended warranty coverage for five years when you only plan to keep your car for three. Evaluating each company by reputation is a great way to decide if they are a reputable warranty provider.

Auxiliary Benefits

Some extended warranties come with optional benefits at no extra cost. These can range from roadside assistance to pet injury coverage. Be sure to ask about any additional benefits or discounts that might apply to you.

If you expect to need towing assistance, rental car reimbursement, or travel interruption reimbursement or would simply like to have these perks, an extended warranty may be a cost-effective way to get them while also taking care of the life of your car.

In the end, it’s your decision if an extended warranty is right for you. Only you know your specific financial situation and car maintenance needs. Fortunately, most reputable companies have online quotes that are fast and free. You can also check with your local dealership or body shop to see what they offer in terms of extended coverage.

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