Extended Vehicle Warranties

Most new cars come with a temporary warranty that provides certain repairs and services for a limited period of time. Once that time has elapsed, the warranty will expire. For continuing coverage, owners may decide to purchase extended vehicle warranties (also known as auto service contracts). These warranties may vary widely depending on the provider. All warranties require that the owner perform regular maintenance on the vehicle or coverage may be voided. Because extended warranties require fees for coverage (similar to insurance premiums), owners need to decide whether an extended warranty is worth the extra cost.
You can purchase an auto warranty from the manufacturer, the auto dealership, or an independent third-party provider. Although some dealerships provide their own warranties, most choose to offer warranties through separate providers. There are pros and cons in dealing with each. Factory-backed warranties offer nationwide networks for repairs. However, if the network is limited in your area, the availability of service repairs will be as well. These warranties usually cost more upfront. Dealer-backed warranties have lower costs but may offer only one point of service, which also limits repair convenience. Independent providers tend to have the lowest costs (usually between 30 to 50 percent less than plans offered by manufacturers) and more dealers and local repair shops. The biggest caveat with independent providers is that if they go out of business, the owner is left holding a useless warranty.
Some warranties are more comprehensive than others. Warranties may cover only specific parts although rarely do warranties cover the entire car, despite the common phrase "bumper to bumper" coverage. Before deciding on an extended warranty, read the fine print to not only determine what is covered, but what isn't covered. For example, some plans only offer coverage if a vehicle has less than a certain number of miles. Also, some plans do not cover particular makes of cars. This is especially true in cases of cars cited for poor quality and performance. Other plans exclude basic wear and tear. Here are some additional questions to consider when deciding whether to purchase a particular plan:
Is there reimbursement if you make repairs yourself?
Does coverage provide road side assistance?
Is there a co-pay for each repair and how much?
How is coverage calculated when necessary repairs extend to systems not specifically covered?
Does the service offer car rental if your car is out of commission for a period of time?
An extended warranty may save a lot of repair costs in the case of a pre-owned car. Excessive mileage and basic wear and tear make used cars more vulnerable to break downs and front-end trouble. The value-added protection of a warranty is worth the upfront costs when back end costs promise to be particularly high. It is always sensible to consult consumer reports to research the type of repairs a particular brand of car is subject to. If a particular vehicle has a history of requiring extensive overhauls below a certain mileage, you may decide not to purchase the car. If you do, you will definitely need coverage to prevent costly out-of-pocket payments.
Before purchasing any type of auto service contract, research the companies responsible for paying the claims as well as the direct sellers. Companies should have ratings with the Better Business Bureau. Also check local consumer agencies for any complaints on file. Reputable providers should be backed by respected and highly rated insurers rather than risk retention groups. This ensures a level of protection for consumers.
Whether you need an extended warranty is a weighing of pros and cons, including make of car, mileage, hidden costs and exclusions. Once you determine all of these factors, you are in a position to make a smart, informed choice.Endurance Warranty.com has been helping car owners save money and gain peace of mind for almost twenty years. You won't find a more affordable or more comprehensive group of extended auto warranty plans anywhere. Nor will you find more knowledgeable or friendly staff to help you find the warranty for you. Visit online today.