4 Important Questions to Ask Before Buying an Extended Warranty

Helping you choose the right extended warranty to suit your needs.

Are you thinking of signing up for an extended warranty? If so, this content is designed to guide you in the right direction when it comes to choosing the right policy for your unique requirements.

Extended warranties offer car buyers peace of mind. Though it may mean they have to fork out additional money for it, in the long run, it also means they get to save on repairs after their warranties have expired.

Every finance and insurance manager will more than likely try and push their customers into purchasing an extended warranty. While it is advisable to get one especially if you are in the process of purchasing a used car, you need to do the necessary research in order to determine whether you really need the warranty or not.

What extended warranties offer

Research is an important part of the process when deciding which extended warranty will fit your car and your requirements. Most car dealers offer different extended warranty packages. You can buy an extended warranty from Warranty and Insurance; however, it is important to know what your options are before you sign on the dotted line. Here are some questions you can ask yourself when investigating what options are on offer:

  • Who underwrites the extended warranty?

Extended warranties can either be purchased when you purchase your car or when your standard car warranty has almost expired. Most car dealers have expert staff in the dealership who are able to provide you with this information.

You can also find this information by reading online reviews about the specific extended warranty policies you are interested in.

  • What does the policy cover?

Before you sign up for an extended warranty, it’s important to make sure that you understand exactly what the policy covers. There is nothing worse than discovering that the policy you bought does not cover what you thought it did.

Different policies cover the repair and replacement of different parts of your car. It is also best to review the policy’s payment options. Do you need to pay for the repairs and then claim against your policy, or will the repair shop claim directly against your policy?

  • When does the cover expire?

Are you planning to keep your car for a long time? Are you buying a used car or are you buying a new car? The answers to these questions will help you decide which policy to choose.

There are extended warranties that last from 2 to 7 years and some cover just about every moving part in the car, while others only cover major parts such as the gearbox, and not the clutch, for example.

  • Is the warranty transferable?

If you sell your car before the warranty expires, can you transfer the warranty to its new owner; in other words, is the policy attached to the car, or is it attached to you as the car’s owner. If you plan to sell the car before the extended warranty expires, it’s best to purchase a policy that you can sell along with your car. Unfortunately, this may cost you more.

Final words

There are many dealers that sell extended warranties. A great example of an extended warranty service provider is Warranty and Insurance.Finally, the secret to choosing the right policy is to read the fine print on the policy documentation before you sign on the dotted line.