A car warranty is a guarantee from the dealership that they will do certain repairs on your car. However, this is within a certain timeframe or a certain number of miles. Whichever comes first. They do not cover all kinds of repairs your car may need. Most of them do not cover normal wear and tear or repairs after an accident.
To be able to compare car warranty companies, you must first understand what car warranties are. Then know what they do or cover. With this knowledge in mind, you can look into the best extended car warranty companies.
Consider beginning your search on platforms such as CARCHEX reviews since the company has been in the business for over 20 years. The information here is reliable and offers good comparisons. Find out what other providers have to offer, so you can settle on what is the best fit for you.
Types of Car Warranty
There are two types of car warranties. There is the manufacturer’s warranty and the extended warranty. The manufacturer’s warranty covers the vehicle for about 30,000 miles or three years. Whichever comes first. They also do not have deductibles. The extended warranty is typically taken after the manufacturer’s warranty expires. You buy it independently and it usually has deductibles.
What Is Not Covered by an Extended Car Warranty
It is important to know this so that when your car needs repairs for certain things, you are not disappointed. The items not covered in a car warranty are:
• Damage from an accident: For example, broken glass or dents.
• Damage caused by improper care: For example, reckless driving or lack of regular maintenance.
• Damage from environmental factors: For example, hail, wind, and sand.
• Interior damage: For example, broken plastics and holes in the seats.
• Routine maintenance: For example, tire rotations and oil changes.
• Exterior or body panel damage: For example, scratches or dings in the paint.
• Wear and tear items: For example, clutches, brake pads, brakes, and windshield wiper replacements.
• Alterations or modifications: For example, tampering with the odometer and installing parts that were not part of the assembly from the factory.
Extended car warranty has been controversial. This is because the companies that handled it in the past were small. They took on a bit more than they could handle. Therefore, when people would forward a claim, they would deny it.
These days, big companies are handling extended car warranties. They have brought added credibility to the product. This is because these companies offer genuine coverage to clients. Some of the best companies here are those that have been in the car warranty business for many years. These have established themselves and proven to be reliable.
Now that you know all the above, you can look into the companies and what they have to offer. As you look into the different companies, there are a few factors to consider:
• Cost or Pricing.
• Customer Experience.
Nowadays, companies offer tiered coverage. This is dependent on your vehicle mileage, the year of manufacture, how you use it, and the condition of the vehicle at the time of contract purchase. Before you buy your coverage, ensure that you read your contract. Understand exactly what the tier you subscribe to covers.
It is hard to determine how much an extended car warranty should cost. However, this does not mean that you pay steep prices. They are different for every car. The best way to know how much you should pay is to shop around and get multiple quotes. This way, you will be able to tell roughly how much is an affordable price.
Read reviews about the company from other customers and sites like Better Business Bureau. Every company will have a few complaints from some of their customers. Did they look into these complaints? Were their customers satisfied afterward?
Look for companies that have awards, high industry remarks, and trusted, well-known brand partners. Find out who administers the policy. Some companies are brokers. Check their AM Best financial strength to know whether they are financially stable enough to pay out claims.
Other factors may draw you to a car warranty company. For example, the choice of a repair shop, how do they pay for the repairs, and deductibles. Some companies do not have deductibles; others have tiered deductibles. Some companies will pay your service provider directly using a company credit card. Others will ask you to pay and then get a refund after showing proof of repairs and the need for them.
Of the latter, sometimes they will deny the claim and leave you with the bill. So, be careful of such companies. Some companies will limit you to the repair shops you can go to. You want a company that allows you to go to a mechanic you can trust and vet.