Auto
Warranty - Check Points
Check
Out Points in deciding whether an Auto warranty is right for
you, and in selecting the best plan for your needs, you'll
need to ask yourself the following questions:
1.
To what extent is your vehicle already under warranty, and
is this coverage in sync with how long you anticipate owning
it?
2. What's the reliability record of the model you're purchasing?
3. Who is behind the warranty that you're considering?
4. What's the nature of its deductible?
5. Is the warranty transferable?
6. Can repairs be performed at any repair shop?
7. What exactly is covered?
8. Is a cash layout required for repairs?
To
what extent is your vehicle already under warranty, and is
this coverage in sync with how long you anticipate owning
it?
If
the car you've just bought is new, take a close look at its
factory warranty before making an Auto Warranty decision.
If, for example, the vehicle has a factory warranty of three
years or 36,000 miles, and you plan on keeping it for two
or three years -- with an anticipated annual mileage of about
10,000 -- then an Auto Warranty makes little sense, since
you'll likely be covered under the manufacturer's plan. However,
if you plan on keeping the car long after the factory warranty
expires, an Auto Warranty is worth considering. If the car
you've just purchased is used, you'll need to ascertain if
there is warranty coverage from the dealership (coverage periods
may range from as little as a month to up to a year, or more).
If you're buying a late - model used vehicle, it's possible
that the vehicle's original factory warranty is still in effect
(this will be dependent on how many miles the car has under
its tires, and on how much time has passed since it was originally
titled). Some manufacturers also offer "certified used" programs
that extend original factory warranty terms on preowned vehicles.
If the car isn't under warranty, or if you plan on keeping
it past its warranty's expiration, an Auto Warranty makes
sense.
What's
the reliability record of the model you're purchasing?
Take
a look at the reliability history of the model you're buying.
Though this is by no means a fail-safe way of predicting what
your repair bill will look like, it does give you an idea
of what you may be in for service-wise; bear this information
in mind when making a warranty decision.
Who
is behind the warranty that you're considering?
An
Auto Warranty may be backed by an independent warranty company
(these are known as after market warranties) or by the covered
vehicle's manufacturer. Knowing who will be underwriting your
policy can give you insight into the strengths and weaknesses
of the contract you're considering. Manufacturer-backed warranties
score very highly when it comes to ease of use. However, after
market warranties are often cheaper. (If you opt to purchase
an after market warranty, take a look at how the company's
financial strength has been rated by A.M. Best and / or Standard
& Poor's; this will give you an indication as to its ability
to pay your claim. Your safest bet is to choose a company
that has a minimum "A" rating with Standard & Poor's,
and/or a minimum "A" or "A-" rating with A.M. Best.)
What's the nature of its deductible?
Fully
investigate a policy's deductible before signing on the dotted
line. Consider not only its amount, but also whether it's
per visit or per repair. With a per-visit deductible, each
visit to the shop will run you a fixed amount, regardless
of how many parts are repaired; a per-repair deductible applies
to each serviced part. What sounds like a minor difference
may, under certain circumstances, have a major impact on your
wallet. If, for example, you've got a $100 per-repair deductible
and you take your car in to get the air conditioner, fuel
pump and alternator serviced, you'll be out $300; had you
opted for a per visit deductible, those repairs would only
have cost you $100. Charier still is a $0 deductible policy.
You will have to pay extra for this, but if your circumstances
become such that you have to take your car in frequently,
you'll find that this policy more than pays for itself.
Is
the warranty transferable?
Some
warranties end when the person who bought the warranty sells
the car. A warranty that allows you to transfer it to a new
buyer is preferable; it's an excellent selling point for prospective
buyers.
Can
repairs be performed at any repair shop?
Some
warranties stipulate that repairs must be performed at the
dealership from which the warranty was purchased; this can
prove limiting and inconvenient. It's best to opt for a warranty
that, at the very least, gives you more than one service facility
to choose from. You'll appreciate this should the vehicle
ever need service while you're on a road trip, miles away
from home.
What exactly is covered?
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. Such a policy can prove
less inclusive than is desirable, since 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, so if your vehicle has this feature, you should consider
upgrading to this level. 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. Before
committing to a warranty, take the time to fully explore the
ins and outs of its coverage implications. The distinctions
between the various plans might seem slight, but they can
prove quite important.
Is a cash layout required for repairs?
Some
warranties require that you pay the bill, then send the receipt
in and wait for reimbursement; in many cases, months elapse
before you get your money back. Ideally, you'll want a warranty
that pays the dealership directly with a credit card.
Remember
to compare all your options before making a warranty decision.
Utilize the Internet; many companies sell directly online,
and, at the very least, getting quotes from them can help
give you a ballpark idea of what an Auto Warranty with your
desired features should cost. In warranty buying, as in so
many other aspects of life, it helps to be fully informed.
Get
a free quote
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