How to Find the Best Car Warranty
In order to find the best deal on a car warranty, there are a few different guidelines you should follow. It’s also a good idea to know the different types of auto warranties that are out there before you make any final decisions.
Always check the reviews of car warranty companies before making your purchase. These can be official reviews online from sites that conduct consumer comparisons, or from unofficial peer review sites. You may also consider asking your friends and families if they have an auto warranty company they’d recommend… or one they’d recommend you avoid.
Do Your Research
Both an article that features a review of warranty companies and the comments left on the articles by individual users can give a very good picture of a company. A total lack of consumer feedback may also be a red flag. You should also check with the BBB, which will provide information on whether the company is truly authorized to do business within your home state, as well as verify that the company can legitimately sell warranties in the first place.
Most new cars will come with a factory warranty direct from the manufacturer that will cover malfunction due to faulty engineering. This can be a great basic start, particularly for the owner who doesn’t want to spend a lot of extra on another warranty option.
An extended warranty is similar to the factory warranty, but lasts longer. This type of car warranty may be factory-issued or may be sold by a third party. Usually factory warranties are more expensive, but they are often recommended over the alternative for several reasons:
- There is little to no wait for repair authorization
- There is no need to pay upfront then file reimbursement claims
- Genuine manufacturer parts are used to repair your vehicle, and the work is done by factory-trained technicians
- Warranties may be transferable to another owner if the vehicle is sold
Role of the Dealer
Your car dealer can sell you either type of warranty, but remember that their motivations are based on profit and not necessarily which warranty will give you the most benefit as a car owner. Warranties are most typically purchased right there in the dealership, but may also be purchased later on directly from the warranty company.
Financing Your Car Warranty
Oftentimes, if you purchase the extended warranty at the same time you purchase your vehicle, you can combine the two payments for convenience rather than pay a large amount upfront for the separate warranty. You may also purchase the extended warranty later on, as long as it’s before the standard warranty expires. In some cases, you may be able to still receive the extended warranty after that date, but it will likely cost quite a bit more.
Finally, like insurance, warranties have all different levels of coverage and deductibles that apply to specific parts of your vehicle. Before purchasing, ask lots of questions so you know what will be covered by your car warranty and won’t be left in the lurch if something does go wrong.