Useful Considerations When Selecting An Extended Warranty Service

extended warranty service

What does it mean when a dealership advertises "certified pre-owned vehicles?" Sometimes, the dealer will claim they are "certified" but will simply sell the customer extended warranty service at an additional cost. While this guarantees you some protection and solid service, it's not the same as being truly certified, which is a manufacturers' automobile warranty. To be truly certified, manufacturers have strident stipulations. The vehicle must pass a rigorous inspection and meet mileage/condition limits. By contrast, an after-market warranty can be purchased for any car, with any condition.

First, consumers should check to find out who is backing the extended warranty service. Is it an independent company or the vehicle manufacturer? Generally, manufacturer-based used car warranties are ideal, known for the easy-to-use guarantee. With an after-market extended car warranty, the owner will need to read the stipulations to ensure that everything is covered.

For example, some companies require that owners call before the work is done. Some companies require regular oil changes and fluid top-ups for work to be covered. Depending on the arrangement, sometimes the company pays the auto mechanic directly, whereas other times the warranty company pays the car owner back later. Reading and understanding the agreement is crucial in preventing unpaid claims.

Secondly, find out exactly what is covered and what is not covered. The things for consumers to look out for here are "breakdown coverage" versus "wear and tear" extended warranty service. While a breakdown automotive warranty may cost a little less, it could be costly over time. Many parts fail due to wearing down and not outright "breaking." Not all contracts cover instances like anti-lock break system failure or engine overheating. At the end of the day, these seemingly inconsequential distinctions can mean the difference between a reasonable plan and a waste of money.

extended warranty service companies may come and go, which makes some people wary. Manufacturer warranties are often trusted because the car companies have been around for decades, with proven accountability. Consumers who are shopping around for a warranty company should read up on the company's history and years of operation. Are they registered with the BBB? If so, were copious complaints filed? Many consumers can get a better deal on their warranty online versus purchasing through the dealership, but it requires a little bit of research.