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How to Find a Reputable Car Warranty Company

car mechanicIf you are a car owner, knowing how to find a reputable car warranty company can help you save a lot in the long run. A vehicle warranty is a great idea because it gives you protection from large repair bills that can come up at any time. Specifically, warranties cover your vehicle from mechanical and electrical failures that result from factory defects. These can include engine failure, faulty ignition, and other major issues.  


A reputable car warranty can give motorists peace of mind. Here are some tips for finding the best extended warranty companies.


1. Look for Providers with Excellent Customer Service


Reputable car warranty companies are concerned about customer satisfaction. They strive to provide quality products and attentive service. Reading online reviews can help you determine a company’s level of customer service. When browsing through customer reviews, look at the high and low ratings. If they’re consistently negative, you may want to seek out another company.


The Better Business Bureau also keeps track of complaints against companies. For a company to be added to the BBB, it must go through a disciplinary process. This means that companies must deal with any complaints that customers file against them before they can be listed.


2. Know What Kind of Warranties It Offers

Reputable car warranty companies typically offer a range of warranties, from basic cover to all-inclusive. A basic car warranty covers failures of major parts like the engine, transmission, or drivetrain. At the other end of the scale, bumper-to-bumper plans cover all the major systems of your car. There might be exclusions on the more comprehensive plans, but they’ll usually cover everything that gives your car its value.


Some warranties can include benefits, like roadside assistance, at no extra cost. When comparing different quotes, it’s a good idea to consider the added benefits.


3. Look For Companies That Offer an Easily Accessible Claims Process

Another surefire sign that a car warranty company is legit is its claims process. Warranty providers should make it as easy as possible for customers to file a claim. Some of them may choose to outsource their claims processing, but you can still expect a quick turnaround on your claim. You don’t want the claims process to be too complicated. Charges for filing a claim, late submission fees, and restocking fees should not be a part of the warranty agreement.


4. Understand What Kinds of Repairs Are Covered

Something else you should look for when choosing a company is whether or how much it charges to cover the cost of repairs. Some providers will waive your deductible, while others may charge a restocking fee. The company should not charge you anything over the actual costs of repairs.


5. Get Familiar with Technical Terms

When you pick up the phone to call a company, it helps if you know what certain insurance terms mean. For example, a deductible is an amount you have to pay towards a repair before the warranty company takes over. On the other hand, a down payment is an initial charge you pay when signing up for a plan.


Keep in mind that some companies do not use these specific terms. They might call the deductible a co-payment or simply an out-of-pocket fee. Reputable car warranty companies should be transparent about their fees and terms. You shouldn’t have to decipher the language on your own. Whenever you’re uncertain about a term or fee, ask the customer service rep to explain it to you.


6. Be Aware of The Company’s Financial Stature

Reputable companies are financially stable, which is another indicator of their legitimacy. They’re likely to have assets in the form of reserves, investment portfolios, and other holdings. They also have a healthy cash flow.


7. Look for a Company That’s Trusted by Your Manufacturer

You can also look for a company that provides warranties on car parts sold by car manufacturers. If the warranty is underwritten by the company that made your car, it’s more likely to be up to date and completely comprehensive.


8. Consider How Long You’ll Be Using the Warranty

Your mileage may vary, so it’s important to consider how long you will be using the warranty. Some warranties are transferrable, allowing you to give the plan to a new owner. Or you might be able to extend your original warranty by signing up for an extension plan. A transferable warranty plan is more valuable than a limited-length warranty.


You might also choose to sell your car before the original warranty expires. If you’re worried that your next car might not be covered under the warranty, consider an extension. Just make sure to research how much it costs before signing up.


9. Determine Whether You’ll Pay Monthly or Yearly

Most warranty providers will either charge you monthly or annually, but you should also be aware that there are other options. Some companies believe in making things easy for their customers and will waive certain fees for yearly plans. A few might even offer a discount for customers who pay upfront for the entire year.


Finally, consider how much coverage you need. Warranties are usually sold in tiers, with more comprehensive plans costing more than basic ones. You can save money by selecting a cheaper tier.


10. Compare Plans to Get the Best Deal

When you’re looking at two different companies, it’s important to compare their plans. You can use a cost-per-mile model to figure out how much it costs to maintain your warranty and compare that with the cost of the plan. Look at all the fees and find out how much you have to pay for other services.


11. Get a Detailed Quote

Before agreeing to sign up, ask the company representative for a quote. Carefully read over the terms and conditions of the warranty. Some warranty providers will try to slip in hidden fees that you might not be aware of, so if you notice anything unusual, make sure to ask about it. You mustn’t feel pressured or rushed into signing up quickly.


12. Ask for a Guarantee

All reputable companies should offer some sort of guarantee. Money-back guarantees are common, and a few companies might even replace a defective part without a deductible. If you’re not happy with the warranty, you can always cancel it within 30 days of signing up.


The Bottom Line: Making Sure the Company is Reputable

These are just some ways you can find a reputable car warranty company. Always ensure that the company is registered with the Better Business Bureau and understand its terms of service before signing up. By doing your research, you can rest easy knowing that you chose a warranty provider that meets your needs.

Read more: Are There Reputable Extended Car Warranties

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