Extended Automobile Warranty

When it comes to an extended automobile warranty you get what you pay for. The company with the lowest warranty price quote has the highest risk of failing and leaving you with worthless paper. You would be better off with no car warranty at all than a cheap warranty almost guaranteed to go belly up. Get the information on the company from the Better Business Bureau or Web Assured before you buy from them. Don’t get taken by one of the hundreds of fly by night companies. They usually don’t adequately fund the warranty claims reserve accounts to pay for automobile warranty claims. Cheapie warranties make up stupid reasons to reject your warranty claims and exclude lots of coverage. You’re left with few covered repairs. You have to pay the shops first then beg for reimbursement from the warranty company, if you can get them on the phone.

Friday, September 18, 2009

An automobile warranty is a contract

An extended automobile warranty is a vehicle service contract between you and the car warranty company. Extended automobile warranties are NOT insurance policies. The money you pay is deposited in a "claims reserve account", insured in case the administrator goes belly up. An extended auto warranty is the most profitable product car dealers sell. Can you get double warranty coverage by waiting until the manufacturer warranty expires to buy an extended warranty? No, extended automobile warranties are simply an extension of original manufacturer's car warranty beyond the standard warranty period. You do not get double coverage. The sooner you buy, the cheaper it is. Sooner or later these items will fail and you will spend money. It’s better to buy a warranty now at the lowest price, than to spend thousands later on a repair.
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