We understand that purchasing an extended warranty is an important decision and not always an easy one. You have many choices and it's important to make an informed decision. We take pride in the fact that we can offer you one of the highest quality extended warranty programs on the market at very competitive pricing. We've provided the information on this page to assist you with making an informed decision.
Here are some questions you should have answered before purchasing your warranty:
A Mechanical Breakdown Protection plan will help insure that your vehicle is kept in the best repair condition and IT CAN SAVE YOU THOUSANDS in the likely event of mechanical failure during the term of your coverage. Vehicles are becoming increasingly complex. Consequently, a single major repair typically can cost more than the cost of mechanical breakdown coverage. A Mechanical Breakdown Protection plan buys you Peace of Mind for Pennies Per Day (typically between 25 cents and 95 cents per day, depending upon your vehicle).
Many warranties are transferable and will increase the resale value to potential buyers. Who wouldn't want to own a vehicle that comes protected from repair bills.
Extended warranties may be backed by the vehicle's manufacturer or by a third-party warranty company. It is important to know who will be administering your policy, as this can affect the overall quality of your warranty.
When you take your vehicle in for repairs, it is the administrator who authorizes payment of claims to your service repair facility. When it comes to ease of use, warranties that are backed by the vehicle's manufacturer score highly. However, high costs and fewer benefits are also associated with these warranties. Third-party warranties often times are less expensive and offer a broader range coverage and increased benefits.
If you decide to purchase a third-party warranty, make sure its administrator has the financial resources to fulfill their obligations under your contract. Most important of all is the company's ability to pay claims quickly and easily.
You should know whether or not the contract you are considering is underwritten by an insurance company. If so, find out the A.M. Best rating of the primary insurer. A.M. Best (www.ambest.com) is the industry's most respected company offering ratings on insurance companies. Should the contract's administrator go out of business, this will give you an indication of its insurer's ability to pay claims.
Deductibles are another way in which extended warranties can differ. In addition to the amount of the deductible (of which you may have several choices), also consider whether you pay per visit or per assembly.
When the deductible is paid per visit, you will pay a fixed amount when you take your vehicle in for repairs, regardless of how many parts are repaired. When the deductible is per assembly, the deductible is applied to each part repaired. What sounds like a matter of semantics can make a big difference in what comes out of your wallet.
Some extended warranty providers terminate the warranty if you transfer vehicle ownership. With others, you are allowed to transfer the warranty when your vehicle is sold, sometimes at the cost of a small transfer fee. This feature increases the resale value of your vehicle and makes it easier to find a buyer.
Some extended warranty providers require that service be performed by the dealership or by a limited number of authorized repair facilities. This can be limiting and inconvenient. Choose a warranty that allows you to have your vehicle serviced at more than one repair facility. This is something you'll appreciate if you ever need service while on the road, or if you move to another location.
Know what's covered -- and what's not covered -- by the warranty you're considering. Does the contract cover breakdown as well as wear and tear? Under a "breakdown" warranty, coverage is extended only to parts that break. Not all parts fail due to breakage; some need to be replaced because they've worn down over a period of time. A "wear-and-tear" warranty extends coverage to worn-down parts in need of replacement.
Additionally, some "entry level" contracts don't cover ABS brakes and many of the luxury options common in today's vehicles, so if your vehicle has this feature, you should consider upgrading to a higher level of coverage. And overheating -- regardless of its cause -- isn't covered in many warranties. Thus, if overheating occurred due to problems with an expensive part such as your radiator, you'd be stuck with a hefty repair bill.
With some warranty companies, when you take in your vehicle for repairs, you must front the money for the repairs and then wait for reimbursement by the warranty company. Often times months will pass before you receive your reimbursement. Ideally, your warranty company will pay the repair facility directly with a credit card as soon as repairs are completed.
Some extended warranties begin on the original "in-service date" (the date the vehicle was purchased from the dealership by the original owner). This can be misleading and confusing as to how much time is left on the warranty. The date the warranty expires will clearly be defined if its term begins on the date the warranty is purchased.
Also, some warranties have a waiting period that can span as long as 30-60 days. This is common with warranties for used cars, and is intended to discourage purchasing a warranty to fix pre-existing conditions.
The longer you wait to purchase an extended warranty, the more expensive it becomes. Because the manufacturer's warranty is factored into the premium of the extended warranty, the more warranty you have remaining, the lower your cost. Very similar to how life insurance works, as the vehicle ages and mileage accrues, the premium for coverage rises. Also, repair prices will increase due to increased parts and labor costs and other factors. Naturally, purchasing now will "lock-in" today's low price providing you with extended warranty coverage and protection from future rising repair costs.