There are different kinds of auto warranty plans out there and it is essential for you to do homework so that you choose the right plan. Here are some things that you can keep in mind while shopping for and deciding on a good auto warranty plan.
What is an auto warranty?
An auto warranty is a service contract that you enter into with the manufacturer or a third party dealer. This kind of a service contract is also explained by:
- The fact that it is a kind of insurance for your vehicle.
- Its ability to assist in meeting unexpected and high repair costs.
- The support that it provides in terms of roadside assistance, rental reimbursement and so on.
- The flexibility of the terms and conditions offered by the dealer.
It is important that you study the terms and conditions of every auto warranty plan before signing on the dotted line.
The difference between manufacturers and extended warranty
Every manufacturer of an automobile offers warranty for the cars. Typically, these warranty plans span three years or a specific number of miles. The number of miles may differ from model to model. It is good for you to figure out whether your auto warranty is a duplication of the original warranty or offers coverage for components that are not covered by the manufacturer. Another difference between a manufacturer’s warranty and a third party auto warranty is the fact that you may get to enjoy roadside assistance and car rental reimbursement with the latter.
Leading insurance companies
Auto warranty plans are also supported by leading insurance companies which may have a high rating as well. It is good for you to find out what are the kinds of insurance companies that are administering your specific plan. It is also good for you to do independent research and find out about the reputation and longevity of an insurance company as well. Dealers will often tie up with well-established insurance companies to ensure that your auto warranty plan deploys without a hitch.
When should you buy auto warranty?
This is truly a question of personal preference. A lot of people buy auto warranty the minute they buy a new car. Other people wait until the original warranty is about to run out and then purchase a policy for themselves. Contacting a dealer will give you enough information on which is the wise course to follow.