Extended Warranty Insurance Is A Must HaveMost new cars today cost more than $30,000 and when a consumer has to pay that much, then they want to be sure that their investment is protected and does not present a whole bunch of problems, and extra costs, even if it is three years down the road. That is why many people are choosing extended warranty insurance, so they can protect their substantial investment. Extended warranty insurance is similar to an extended service plan, and very similar to automobile insurance. What you do in an extended warranty insurance plan is put money up front, so you don't have to pay a whole lot more later on down the road. An extended warranty insurance plan is similar to an insurance plan and you get what you pay for. So if you pay less for an extended warranty insurance plan, you are probably going to get less coverage. The Need for Extended Warranty Insurance Most dealerships offer you a warranty with your new car. So what is an extended warranty for? Extended warranty insurance covers engine, and transmission parts and some limited warranties on used cars, after the regular warranty has run out. If you do not plan on keeping your new car for more than three years, then you might not need an extended warranty insurance plan. Extended warranties are offered by dealerships, obviously because they make money by selling it to you at the time you purchase your new car. The dealer does mark the extended warranty up, but he also gives you better payment options. One thing you should remember is that it is less expensive to purchase an extended warranty insurance plan while you are still covered under your regular warranty. If you wait and buy your extended warranty insurance plan until after your auto warranty is up, you will probably end up paying quite a bit more. Where should you get your extended Warranty? There are three places you can get extended warranty plans. * The manufacturer - The benefits of this type of extended warranty service is that it is backed by the dealer and the factory and goes nationwide. There is no haggling about the repair or the price. The disadvantages of this plan is that it has a high up front cost. * Dealer - Lower cost and you have to service the car at the same dealership. If they cant fix it then you might have a problem * Independent - This plan costs the least. You can almost save 50% here. The problem is some of these companies go out of business quickly. How is a Good Extended Warranty Insurance Plan Indicated A good extended warranty plan will give you the ability to choose the dealership or an independent repair shop, they will have a free loan car option, they will be certified by the Better Business Bureau. |