Extended Warranties on Your Car

To protect yourself from losing a small fortune in the event of an accident, you have most likely purchased a car insurance policy. Your insurance policy provides coverage, after you pay your deductible, for the repairs that are necessary to get your car back on the road and running again. With the high costs of purchasing a new car, this is like protecting a large investment you are making.

Sometimes, however, an auto insurance policy will not provide adequate coverage. If your car begins to require more and more repairs, your car insurance may not pay for the costs. Extended warranties, offered by most car dealerships and even some insurance companies, can present a good solution.

Your car, if you buy it new, will generally come with a standard warranty for up to three years. Depending on the terms of your warranty, this can cover you anywhere from just basic repairs and parts to repairs, parts, roadside assistance, labor, and so on. By purchasing an extended warranty, you may be able to cover your repairs past when your initial warranty ends.

When purchasing an extended warranty, you should always find out all of the details to make sure that it is worth your money. Find out exactly what is covered by your warranty, as all warranties are different. Does yours offer roadside assistance? Does yours offer reimbursement should you need to rent a car while yours is repaired? Check the deductible terms. Some extended warranties have separate deductibles for parts in different systems within your car. You may end up paying a deductible on your engine parts, and a separate deductible on, say, your cooling system. It is also important to know whether your warranty covers wear-and-tear damage, as some plans will only pay for repairs necessitated by mechanical breakdown.

There are warranties that only have one deductible regardless of how many parts you need to repair or replace. There are also warranties that will only charge you for one part the first time you need it fixed. Furthermore, many policies do not even require a deductible. All of these policies, however, can still end up not being worth their price, as they will generally cost more when you purchase them.

There are clear advantages and drawbacks to purchase an extended warranty. If you have just bought a new car, you may not need additional coverage for three years, at which time you may want to sell your car anyway. Even if your car somehow does not come with a warranty, you are protected by a state law that requires all cars to be guaranteed for at least 12,000 miles.

While we do not offer extended warranties, please click here if you want to make sure you are getting the best deal on auto insurance :