Whenever you buy a new car you get a warranty offered by the producer. It can apply for a standard number of miles or for a number of years (usually around 3 years). What do you do when the warranty expires? Not getting an extension or a new warranty could leave you exposed to a breakdown of your bank balance along with the breakdown of mechanical or electrical parts of your car.
What should you consider when choosing a new car warranty?
As you have probably already noticed, there are different types of car warranties and the prices differ a lot between them. Warranty plans differ from those which cover only a few parts of your car to those we could consider “all inclusive”. When choosing one of the car warranty plans for most of us the price is one of the key factors. When deciding if a car warranty plan fits your budget keep in mind that a car is composed of more than 5000 parts. The truth is that some of them are cheaper and some of them have spicy prices so a little research can’t hurt! Make sure you have an idea about what are the most common problems of your model and which parts are more expensive in order to make an informed decision about your car warranty.
Make sure you know what you are paying for in your car warranty plan!
Before making any decisions about purchasing or not a car warranty make sure you know what you are buying! Whenever a car part needs to be changed that involves a new car part, labor hours and other expenses. If you are not sure that everything is covered by the warranty don’t be afraid to ask questions. You should know if all the costs are supported by the warranty or if you have to pitch in. You should also consider asking if the new part will be supported 100% by the warranty all the period the warranty applies. You can find car warranty offers that only support some percentage of the new part’s price depending on how old your car is or the mileage.
Always ask the question “in what situation does the car warranty not support 100% the costs of reparation?”. Some car warranty plans will make you pay a part of the repair costs because they consider it will increase the value of the vehicle (like a new engine or a new gearbox). Another situation in which the warranty could be useless is when it’s stipulated that they will not support the cost of reparation for a car part listed in the warranty if the damage is made in consequence of the damage to a part that is not listed in the car warranty. In this case, you might end up paying for both parts regardless of the car warranty.
Another important detail when deciding on a car warranty is if it is or isn’t underwritten by an insurer. This will protect you in case something happens to the warranty administrator or seller. If a car warranty is not underwritten there is a risk for your money to be at risk.