Know Your Stuff With Extended Warranty CompaniesThere are many different types of extended warranty companies that sell through different car dealership. That is why you as a consumer should know about extended warranty companies before buying your new car. Extended warranties can be bought through the dealership, or online. Define Extended Warranty Companies Extended warranty companies offer an extension on your car warranty. Your new car warranty goes out after three years or when you reach the 30,000 mile point. Afterwards your car will not have warranty coverage, unless you had bought an extended warranty. There seems to be a lot of difference of opinion as to whether the extended warranty is a good buy, or not. Most people who have problems with extended warranty companies do so, because they did not read through their contract when they purchased the extended warranty. An extended warranty is supposed to cover the cost of major part replacement in the event of a car failure after the warranty has gone out. But the payout from extended warranty companies depends on the type of coverage you have in your extended warranty. Some extended warranty companies only cover failure of parts. In other words, the failure of parts due to defective manufacturing. Now if a part is going to fail because of defective manufacturing, it will normally fail within the first three years of the cars purchase. This is why so many people get angry at the extended warranty companies. They go in thinking that the repair will be covered by the extended warranty company and it turns out that it is not a covered repair. Why? Well, because they never read their extended warranty contract to find out what was covered and what wasn't. And since most people are not worried about their extended warranties, because when they purchase it they have their new car warranty and they know that they are covered through that. People don't even look or consider their extended warranty purchase until three years down the road, when they think they need it. Other extended warranty companies do cover you for failure of major parts including normal wear and tear. This type of extended warranty is a better type of extended warranty, and is usually a little more expensive. You can avoid many problems if you just read the extended warranty contract before signing it. There are other requirements that are stated in your contract as well, that influence the extended warranty companies ability to pay the claim. Many contracts require that you do the regular maintenance through the authorized dealer, and that you keep all records of those maintenance checks, so if asked to provide proof, you can. Choose Extended Warranty Companies with Care Check into the financial stability of extended warranty companies you are considering purchasing from. You can do this by checking their A.M. rating and the Better Business Bureau to see if there are any bad commentaries made about the company. Most states now have strong regulations with regards to licensing of these extended warranty companies. So be careful, but not too paranoid! |