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Choosing an auto extended warranty can require careful consideration to ensure that you get the coverage you need at a reasonable cost. There are some details to pay attention to. Here are some steps to help you pick the right car extended warranty:
• Understand Your Car's Manufacturer Warranty
Review your car's manufacturer warranty to see what coverage is already provided. Extended warranties typically kick in after the manufacturer's warranty expires.
• Evaluate Your Needs
Assess your driving habits, the age of your car, and your budget. Consider how long you plan to keep the vehicle and the likelihood of expensive repairs.
• Research Warranty Providers
Look for reputable extended warranty providers. Consider both the dealership where you purchased your car and third-party providers. Read reviews and check their Better Business Bureau rating.
• Determine Coverage Options
Determine the type of coverage you need. Extended warranties can vary in terms of what they cover. Common types include powertrain, bumper-to-bumper, and comprehensive warranties. Choose the one that suits your needs.
• Examine Terms & Conditions
Carefully read the terms and conditions of the warranty, including what's covered and what's excluded. Pay attention to deductibles, coverage limits, and any special requirements.
• Check For Transferability
If you plan to sell your car before the warranty expires, check if the warranty is transferable to the new owner. This can add value to your vehicle.
• Compare Quotes & Prices
Get quotes from multiple providers to compare prices and coverage options. Be cautious of overly cheap warranties, as they may not provide adequate coverage.
• Negotiate
Don't be afraid to negotiate the price and terms of the extended warranty. Dealerships, in particular, often have some flexibility in this regard. If you don't ask, you'll never find out.
• Read Customer Reviews
Look for a warranty provider with a good reputation for customer service and a history of honoring claims promptly. Try to find reviews from other customers that have already purchased warranties from the provider(s) you are considering. Their experiences can provide valuable insights.
• Review The Fine Print
Be aware of any maintenance requirements, such as regular servicing at authorized repair shops, to maintain warranty coverage. Sometimes these details are at the end or in the fine print of the warranty.
• Ask Questions
Don't hesitate to ask the warranty provider or the dealership any questions you may have. Clarify any doubts or unclear items before making a decision.
• Verify Included Services
Verify that the warranty includes additional services that may be important to you. Roadside assistance, rental car coverage, or trip interruption coverage are some common services that are included with many warranties.
• Consider Your DIY Skills
If you're handy with car repairs and maintenance, you may not need as extensive coverage. Adjust your warranty choice accordingly.
• Don't Rush If You Don't Have To
Don't rush into a decision. Take your time to carefully evaluate your options and make an informed choice. Obviously it would be ideal to not have a gap in coverage, so start researching early so you can make a decision you feel good about.
Keep in mind that auto warranties can have very different covered parts, time / mileage limits and additional services. However there's another very important thing to consider when deciding on a warranty:
Be honest with yourself
As you're in the process of selecting an extended warranty, be realistic about the price of the warranty and your ability to maintain any requirements to keep the warranty valid.
Once you've selected an auto extended warranty, make sure to keep all relevant documentation and receipts...it's important for you to have your own copy on file.
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