You just bought a new car. It’s shiny and new, or new to you. And it has that new car smell. What happens after the factory warranty expires? The Extended Auto Warranty Protection is your safety net for future car repairs. Let’s take a look at it.
Let’s be clear: An extended auto warranty is not a warranty. This is more of an insurance policy that covers your vehicle’s systems and parts. You can pay in advance or in installments for future repair costs. It sounds simple, doesn’t it? There’s more.
Imagine this: you’re driving down the road when your engine light suddenly flickers on. You feel your heart skip a beat when you consider the impending repair bills. This sinking feeling could be reduced with an extended warranty because all or part of the costs may be covered.
Here’s where it gets interesting, or tricky, depending on your perspective. Not all warranties have the same value. Some warranties only cover major components such as the engine or transmission while others provide bumper-to-bumper coverage. There are also those that have so many exclusions, they look like Swiss cheese.
I’ll tell you a story about my friend Dave. He thought he would be covered for any problems that might arise with his SUV, so he bought an extended warranty. His air conditioner decided to go on a permanent holiday during a heat wave–classic Murphy’s Law. He thought that he had coverage, but the fine print said otherwise.
Don’t misunderstand me, these warranties are life-savers when chosen carefully. You need to choose one that suits your lifestyle and needs without raising too many red-flags.
A tip: always read the fine print. It may sound as boring as watching the paint dry, but it will save you from unpleasant surprises in the future. Before signing anything, make sure you know what is included.
Another nugget of wisdom is to consider who backs the warranty–manufacturer or third-party provider? The manufacturer-backed warranties are often easier to obtain, but may cost more up front. Third-party insurance can be less expensive, but may require more paperwork when submitting claims.
Consider how long you intend to keep your car. You may want to skip this step if you are someone who changes cars as quickly as Taylor Swift switches boyfriends.
You may not realize that you already pay for services like AAA or credit cards, which include roadside assistance and rental car reimbursements.
Let’s talk about money, because wallets are important! Costs vary widely depending on car model, make and desired coverage (remember Dave?) Negotiating can sometimes lower the cost; dealers will often haggle like they would at a flea-market!
Extended auto warranties are a great way to ensure peace of mind, but they’re not always needed for every type of vehicle or driver. This is especially true if your car is known for its reliability.
Remember these tips the next time someone offers you an extended warranty for your car. Doing your research and avoiding Swiss cheese are key to determining whether it is worth the money or not.
Okay, folks. That’s it. Go forth and drive in safety…and may you engines purr for ever!