Do You Need an Extended Warranty?

If the need arises to buy extended auto manufacturer warranty, then it is crucial to undertake plenty of research and know which type will suit the preference, needs of the vehicle and to save the amount in the future on repairs.

Some useful tips to follow

·         Check if extended warranty is really required: It can be considered to be powerful safety net to save good amount of money on vehicle repair cost. But in some situations, such warranty might not prove to be of any help and hence, not required. Knowing such cases will help to ascertain whether to go ahead with the purchase or not.

• Purchased new car and intend to drive it just for 3 years or so: Generally mechanical problems are covered under implied 3 year warranty offered by the manufacturer. So extra coverage is not required.
• Car more than 10 years old: On completion of 120,000 miles or with the 10^th anniversary of the vehicle, full coverage atomically expires. Here, extra coverage will be of no use.
  
  

Selecting a reputed service provider: Since the market is full of scammers, it is with great care that the service provider is to be selected. The company needs to have a decent track record and avoid those showing aggressive sales tactics. As a matter of fact, there are numerous auto warranty providers in the market with several thousand third tier and several hundred second tier companies, wrapping business around those companies. Service middleman is better avoided and it will be wise to get to the source to save good amount of money. Start reviewing the top providers listed on the web. Second opinion is a must have to make the final decision. 

·    Select appropriate coverage: It is very much essential to know what exactly is covered in the warranty. This can help to save precious money by selecting the best one. The main coverage plans are to be clearly understood and used in favor of the buyer to enjoy its benefits.

·     Request contract transfer policy and cancellation: In case, the person changes his mind about the purchased coverage, then the provider should offer greater freedom to cancel the policy. Some businesses might charge still penalties for policy premature cancellation. Well known warranty providers may offer 60 days or 30 days initial cancellation policy along with full refund, including normal pro-rated refund with regular any time cancellation. They may also offer contract transfer provision if the vehicle is sold to another business or person.

·    Prior to purchase, review warranty contract: Based on business brochure of any provider, one should not make purchases. The brochure actually is not any legal document, but a contract definitely is. The contract needs to be very carefully reviewed. Special attention is to be paid to fine prints, if any special provisions or exclusions not discussed previously. The parts that are not provided coverage by the contract is also to be reviewed very carefully.

It is equally essential to know how the policy containing expiration mileage is properly calculated. Few warranties, for instance, bumper to bumper may expire as the limit stated within the contract is reached by the vehicle’s odometer. The other aspects are to be understood such as powertrain and stated auto parts upon incurred total mileage after warranty contract had been signed. 

The above mentioned tips and suggestions is sure to help the person to know what is the perfect solution to be availed to protect the vehicle and the pocket as well from those hefty repairing expenses. Making the right decision will go a long way to enjoy long term benefits.