Worried About Budget-Busting Repair Costs?
Nobody likes to pay for unexpected auto repairs. You know that, sooner or later, your car is going to break down. And it always seems to happen during the month you can least afford to make a large repair payment!
But you can protect yourself — and your wallet — with an auto repair warranty.
When you buy auto warranty coverage you are basically buying insurance against costly auto repair bills. The peace of mind of an extended warranty can be wonderful. You never have to worry, and you can save hundreds and even thousands of dollars!
Before committing to an auto repair warranty plan, take the time to explore the ins and outs of the various coverage options. And you can save hundreds of dollars by comparison shopping and requesting auto repair warranty quotes online. Plans can look similar yet have very different prices, so be sure to read the fine print.
Here's a list of important questions you should consider:
Do you really need an auto repair warranty plan for your car?
Your vehicle is one of your biggest investments, and an auto repair warranty will ensure it's repaired if anything goes wrong. Did you know that the average major repair is over $2,000? With the complexity of today's vehicles, one major repair can cost more than the cost of the extended warranty.
You are making a bet when you buy any auto repair warranty. You are betting that the total amount of the warranty payments will be less than the amount you would pay when your car breaks down. Before purchasing an auto warranty, think critically about your particular car. Is it a make and model that will run for 150,000 miles just by changing the oil regularly? Then you might not want to pay for an auto repair warranty. But if your car has a tendency to break down, or if you can't afford to make a large lump-sum repair payment, an auto repair warranty can be a great purchase.
There is no need to buy an auto repair warranty if you are purchasing a new car and don't plan to own it longer than the manufacturer's original warranty.
When should I buy coverage?
An auto repair warranty is less expensive the earlier you purchase it. As your vehicle ages and accrues mileage, the price for protection rises. The newer your vehicle is, the lower the prices and the longer the terms. The warranty provider usually takes into account the time left on your manufacturer's warranty, if any, and takes over after it expires.
What should I look for in the warranty's coverage?
Be sure the most expensive parts of the car are covered, namely the engine and power train.
How will my claims be handled?
Look for a company that handles all aspects of your claim — and allows you to use the auto repair facility of your choice. Don't get locked in to going to their preferred provider, who may not be the best option for you.
The warranty company should pay the repair facility immediately via corporate credit card. They should cover all parts, labor and even sales tax (if applicable) with no limit on the number of claims you may have, or the parts that may be used for replacement.
Make sure that the company you are considering will pay the full, posted labor rate to the auto repair facility and not just the hourly rate designated by the repair guides.
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