Extended Warranty Essentials For Automobile To Consider

extended warranty coverage

Are you considering an extended warranty for your next automobile? Whether you're choosing to buy new or used, the price for peace of mind is immeasurable. For many of us "road warriors," the thought of a car battery suddenly dying or a tire flying off and stranding us can be daunting. What if we need new brakes when we're low on cash or what if our transmission fails, costing over $500 in repairs? You may be surprised to learn that there are many options for auto extended warranties and that some are practical, while others aren't quite worth the money. If you're wondering what to look for in an extended auto warranty, then you're not alone.

Dealerships know that consumers trust them, by nature. An establishment that deals with billions of dollars in sales each year couldn't possibly rip you off over a technicality like the extended warranty, could they? Well, perhaps they don't mean to rob you blind, but think of the dealership as a retail operation. If you've ever worked in retail, whether it's clothing, furniture, consumer gadgets or automobiles, then you know that retailers mark up the cost of their items anywhere from 100% to 1,000% of the cost value! Now imagine how much extra you could be paying for your extended automobile warranty. Don't be afraid to go directly to the source and purchase your warranty online from a trusted company like Warranty Direct.

Another factor to consider is auto warranty for "wear and tear." This type of warranty can be hard to find, since many only cover mechanical failure. However, you can definitely find extended warranty coverage that includes "wear and tear," thereby covering parts like the idler arm, piston rings, U joints, CV joints, wheel bearings, motor mounts, suspension bushings, tie rod ends, seals, gaskets and other engine parts that gradually wear down and may or may not cause a mechanical breakdown.

If you have an anti-lock braking system, then you'll want to make sure your coverage extends to ABS and instances of overheating. The comprehensive website, carbuyingtips.com recommends Warranty Direct and Nation Warranty Corporation, which both include "wear and tear" in their plans.

Lastly, you'll want to ask a few nitty gritty questions. Does your warranty company deposit part of your money into an insured "Claims Reserve Account" (to ensure there are sufficient funds to pay a covered claim)? Do they offer $0 deductible, or will you have to cough up a portion of the claim? Is your extended warranty transferable, should you opt to sell the car? Is there a 100% money-back guarantee for the first 30-60 days? If the insurer defaults on your warranty due to excessive claims, is there a reinsurance backup? These are all factors to consider.