When it comes to getting an extended warranty for their vehicles, most people would often ask this question “Do I even need one?” Extended warranty policies can sometimes be expensive, although the cost would vary, depending on the coverage, as well as the length of coverage too. If ever you decide to buy one, do not let the dealer sell you the wrong policy. You have to know your stuff in order to avoid any problems when filing a claim in the future. Here are some important tips to guide you on buying an Extended warranty plan:
When purchasing an extended warranty, familiarizing yourself with the following tips will help to ensure that you select the correct warranty. First, the decision to purchase or not to purchase. To begin, you will need to determine if purchasing an extended warranty is valuable for you. With extended warranties, it is often an area where people lose money. The reason for this is because they are not well informed as to the coverage that the plan provides. Another area where new car purchasers are also misinformed is that the extended warranty must be purchased from the same dealership as to where you purchased the vehicle. This is not the case. This often happens because this is what you are lead to believe. Again, being informed as to your options will ensure that you avoid these mistakes. Often times, the dealership leads you to believe that you are in need of purchasing the extended warranty from them in order to make the additional sale. Know your options and do not be suckered in by the dealership.
Determine if they will be paying for initial diagnosis. A customer that has an extended warranty came to a repair shop to complain about some intermittent operation on his vehicle’s speedometer. Since the problem is not always present, the diagnostic procedure performed had cost several hundreds of dollars. And after the dash had been pulled out, it was discovered that the problem was only due to some faulty connector that costs some $42. However, the diagnosis reached to almost $300! Thing is, this plan does not cover the diagnosis, so he ended up paying 300 bucks. In reality, cars are actually easy to fix, they are just too difficult to diagnose. Therefore, you better make sure that your extended warranty covers the cost of diagnosis.
Check the Deductible. When you buy car insurance, there will be a significant savings on premium, and with a higher deductible. Extended warranty plans do not usually offer you that same benefit. Say for example you have a plan that has a $50 deductible that costs $1500, so you would expect that with a $100 deductible, the cost should be around $750, but this is not usually the case. You might be surprised to find out that a $100 deductible plan can cost $1100.
Confirm whether it is a captured warranty. A captured warranty is a extended warranty plan that is sponsored by a the vehicle manufacturer and offered through specific sellers at special pricing. The flip side to the captured warranty is that it only allows you to have the vehicle serviced at the specific dealer. Should you receive poor service, then you are stuck.
The first step is to look for a place where you can get a free quote on an extended car warranty. You can search for some sweet prices on these vehicle extended warranties here.