Automobile Warranty

Purchasing the right extended auto warranty cure for repair headaches

When purchasing a new or used car, more than likely you will be offered an extended automobile warranty that will pay for repairs to the car after the manufacturer's auto warranty runs out. Purchasing the extended automobile warranty at that time can save you from scrambling to find an extended automobile service plan when the auto service contract runs out.

Unfortunately, not all extended auto warranty providers offer the same types of policies. The best automobile service plan will offer:

1. True bumper-to-bumper vehicle warranty services, which includes everything that can wear out or break down.
2. A claims reserve account, which is where the extended auto warranty provider deposits funds to ensure your auto warranty claims will be paid.
3. No deductible for individual repairs or parts covered by the extended auto warranty.

Compare automotive extended warranties

You can find a discount extended car warranty or companies offering complete vehicle warranty services online (except in California).

Buy an automobile warranty from your dealer

Although this can be more expensive than purchasing an extended warranty directly from a warranty provider, you have the assurance that your vehicle model is covered.

Know your basic coverage vehicle warranty services

Almost every automobile sold today comes with some warranty coverage, but coverage differs from manufacturer to manufacturer.

Cover used cars with extended vehicle warranties, too

There are several extended auto warranty providers that can cover you if you've purchased a used vehicle.

• If purchasing a used car, find out if there is any warranty coverage left on the vehicle.
• Find out who is backing the warranty coverage you're purchasing. It may be the automobile manufacturer, a third-party or an insurance company.
• Make sure the warranty coverage you purchase will pay the repair shop directly and will allow you to use any repair shop, including your dealer, without qualification or pre-approval of the repairs.
• Make sure there are no hidden costs, such as deductibles for every part replaced or other charges.
• Know exactly what is, and is not, covered.

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