What You Should Look For When Getting An Automobile Extended Warranty Plan

extended warranty plan

"How can I afford the extended warranty plan?" some auto buyers wonder. It is a natural consumer instinct to hunt for the best deals and the lowest prices, without getting ripped off. However, the internet has become one of the best places for the keen car buyer to purchase auto extended warranties, since there aren't dealer markups. It can be a daunting task, with so many scams and ramshackle, fly-by-night operations out there, but these tips will help you to make an informed decision.

First of all, be sure you're dealing with a solid company. See that they're listed in the Better Business Bureau or Web Assured, and that they have years of experience. For example, Warranty Direct has been in business for 26 years and NWC have been in business for 20 years. Read consumer comments and testimonials, check to see if the company services any dealerships and ask if they have a reinsurance program, which means they will be good for the money, even if many people are filing claims all at once.

You may have heard that it is next to impossible to find a warranty company to cover some cars. For example, forget about snagging a deal on your low-end Land Rovers (with poor quality, frequent and costly repairs). If you have a turbo engine in your Porsche or a really old car, then you may have a hard time finding an extended warranty plan as well. If you're stuck in this situation, you may want to consider putting ,000 into a long-term CD or money market account to save for repairs. If you have an older high mileage vehicle, then you can still find a reasonable deal through Warranty Direct, which covers vehicles up to 150,000 miles ("PowerShield Plan"). NWC also has a plan covering you up to 90,000 miles ("AutoXtra"), which covers components like the engine, transmission, drive axles, belts, water pumps, fuel pumps, rental car insurance and emergency roadside assistance. Before you visit the dealership to wheel and deal, be sure you arrive with an online quote in hand as a bartering tool.

An extended warranty plan can be a good investment for some people, particularly those who own lower-end models, those who drive more than 14,000 miles annually, or those who have limited manufacturer warranties. Some people feel more comfortable having that peace of mind, but they must be careful not to assume everything is covered under their extended auto warranty. Auto owners must also be aware that routine oil changes, air filter changes, tire rotations and other maintenance is the best thing they can do to protect their investment!