The other day I tried to count all the automobile extended warranty companies selling auto protection plans online. I stopped counting after I reached 20. There could be another 20, but my eyes were getting weary. Questions concerning the auto extended warranty industry started flying through my head. Who are all these guys? Why are there so many warranty companies? Can all of these companies and websites be legitimate? Are automobile extended warranties worth the money? How do I find a reputable company?
Owning a good automobile extended warranty from a reputable company can be an excellent experience.
If you love your car and want to be sure the affair continues for years to come, a used car extended warranty from a reputable company can make your ownership experience complete.
But how do you find a reputable auto warranty company? With so many options, plans, and prices, how can you know which choice is best for you?
To choose the right extended car warranty provider for your vehicle, make sure you have the answers to the following questions:
1) Does the used vehicle extended warranty company you are considering have credible insurance backing? If your contract is insured by an insurance company, this assurance will be clearly written in the car extended warranty policy. Be sure to read and verify the insurance backing. It’s also a good idea to check the company’s insurance rating. Be sure the rating is A+, A, or A-. If the rating is less than these, I’d recommend you look for another extended warranty company to do business with. You can research the AM Best Insurance ratings for all auto extended warranty companies here. AM Best is the leader in Insurance ratings Included are indicators for financial strength.
2) Will the auto warranties companies pay for your auto repair at the service facility of your choice with their corporate credit card? This is important, as most dealerships and repair facilities will not start the repair for auto warranty companies that want them to wait on payment. The warranty company should issue their own corporate credit card payment at the time of repair.
3) What will the date be when the extended warranty expires? Try to purchase at least 3 years and 36,000 miles of coverage if your vehicle has less than 80,000 miles on the odometer. If you have less than 50,000 miles, try to extend another 5 years and up to 100,000 miles on odometer.
4) How many miles will be on the odometer at expiration? Some plans have confusing terms and vehicle mileage end times. Be sure to write down your ending date and miles on your warranty paperwork.
5) How easy is it to cancel and receive my pro-rated refund? You may cancel your extended warranty at any time and receive a prorated refund? The best used car warranties will let you cancel the remainder of your warranty policy even if you have previously collected on a claim payment.
Consumer Reports rarely forgets to comment about auto extended warranties. But are they right this time?
Having trouble selling your old car? Learn how to spice up your offer by transferring your auto extended warranty.
About the authors: As an 11 billion dollar U.S. business per year, the auto extended warranty is an integral part of the vehicle ownership experience for millions of Americans.
Written by a group of industry professionals with a combined 30 years experience, WarrantyWatchman.com is a consumer protection site and premier source for information regarding auto-extended-warranties.