Owning a car can be costly. There’s insurance and gas to pay for, and you’ll also need to maintain it properly throughout its life to keep it running optimally.
Unfortunately, paying for expensive car repairs is also inevitable at some point.
With all the added expenses of owning a car, the actual cost is much more than just the purchase.
And, while you can’t predict what will happen, preparing for expensive repairs now rather than later is the best way to reduce the financial impact they will have.
This is where an extended auto warranty comes in.
An extended car warranty works similarly to an insurance plan, but it will cover the cost of electrical or mechanical breakdown after the factory warranty on the vehicle expires.
But now that you know how an extended warranty can protect you, how do you choose the right one?
Choosing a Provider
To choose the right extended warranty provider, be sure to compare them online. Begin by searching for customer reviews, for example, CARCHEX Reviews.
There are two types of extended warranty providers – car manufacturers and third-party companies. A manufacturer will sell warranties for their vehicles, and aftermarket providers will cover any make or brand.
Purchasing an extended warranty from the manufacturer will give you access to specialized technicians, but you won’t be able to use your preferred mechanic.
Purchasing an extended warranty from an aftermarket provider will usually mean that you can specify which certified mechanic or auto shop you want to repair your car.
Determining Your Needs
Extended warranties usually come in two main types of coverage: comprehensive and limited. Comprehensive coverage is generally more expensive than limited coverage because it generally covers more than just mechanical or powertrain repairs.
If you have a new or luxury car with technologically advanced features, consider opting for comprehensive coverage. Comprehensive coverage will cover sensor, electrical, and even audio repairs to your vehicle.
Choosing the Right Coverage
Deciding how much coverage you need should be based on three main factors: your car’s life expectancy, mileage, and whether it is likely to break down.
The higher the mileage is on your car, the more likely it is to experience mechanical failure at some point. Higher annual mileage will also mean that you should choose a higher mileage limit when you purchase your extended warranty.
Other considerations when choosing the details of your coverage include your deductible and your budget. For instance, if you need a higher mileage limit, you will pay more for an extended warranty. If you think you will need to make frequent claims on expensive repairs, you should set a low deductible.
Getting the Best Deal
Researching what you need from an extended warranty before you even set foot in a dealership is the best way to avoid mistakes when choosing your coverage.
Before you decide which extended warranty provider to use, get several quotes from a few different companies. This way, you’ll be able to see who can offer you the best price and get some bargaining power.