Things to Consider Before Purchasing an Extended Auto Warranty
How likely is the car to break down?
If your car is known to be reliable and is unlikely to have any serious issues, it may not be worth buying a warranty. However, keep in mind that no car is indestructible, they will all break down at some point.
Is the savings worth the cost of the warranty?
Consider how much it may cost to repair your car if it were to break down. If the repair costs are likely to be much higher than what you pay for the warranty, it is probably worth it. It may also be worth buying a warranty just to give you peace of mind that you won’t have future expenses to worry about.
How long will you own the car?
If you plan on keeping your car for a long time, it may be worth buying coverage for it. Many modern owners are choosing to keep their vehicles for longer and invest more into one car rather than just replacing it.
What exactly is covered?
Make sure to read through everything in the contract and consider exactly what will be covered by the warranty. Many companies may try to deceive you in order to sell their product. The same type of warranty from a different company may not cover all the same things.
How long will your vehicle be protected and for how many miles?
Every warranty will give both a number of years and a number of miles that your car is covered for. Whichever comes first is when your warranty expires. Since each policy is different, be sure to keep these numbers in mind and compare them with other warranties.
Where can you go to get the repairs done?
Some warranties make it so you can only get the repairs done at a few specific stores. This could cause inconvenience as you may have to drive out of your way to be able to repair your vehicle under warranty.
What about deductibles?
Lastly, check to see how deductibles are applied and how expensive they are. Some policies seem to be relatively cheap, but include hidden high priced deductibles. You could save a lot of money if you keep these numbers in mind when choosing your extended auto warranty.