questions to ask before choosing a car warranty company

When it comes to choosing a car warranty company to protect a vehicle after the factory warranty has expired—or in addition to the coverage it provides—it is important to ask the following questions in order to get the best deal for the money.

Is the Company Reputable?

Like any product or service, it is helpful to make sure that an auto warranty company is reliable and trustworthy before making an agreement or sending any sort of payment. After all, a warranty does no good if the company refuses or is unable to make good on their promises. National companies with a good reputation can be found through internet searches or via word-of-mouth from friends and family members.

How Much Does it Cost?

Some car warranty companies will offer cheaper policies than others but it is important to understand what types of coverage these policies provide. While it may be a customer’s first choice to go with the least expensive plan available, they may end up lacking certain coverage aspects that can have a huge impact on the consumer. Cheap policies may only cover the basics—such as the engine or transmission—while more expensive policies cover other parts, as well.

What is the Deductible?

Similar to an insurance policy, most car warranty purchasers are required to pay a deductible before any of their repairs will be finished. The amount of the deductible is often directly reflected in the price of the warranty; the higher the deductible, the lower the premium cost and vice versa. The key is to find a plan that has an affordable deductible at a good monthly, quarterly or annual cost.

What is Covered?

Each individual car warranty company—and even the individual plans within a single company—cover different aspects of a vehicle. For instance, a bumper-to-bumper warranty will cover nearly anything on the car while a powertrain warranty only covers the engine, the transmission and the components associated with them. Buyers should determine what type of coverage they are interested in and use that as a base for their queries when they discuss coverage with a car warranty salesperson.

Who Can Complete the Repairs?

Many car warranty companies have pre-existing agreements with specific car repair companies in order to get a better rate for repairs. While this is an acceptable business practice, it can become difficult for the consumer to find a local mechanic or repair person if they have a very limited selection. Some companies allow customers to take their vehicles to their mechanics of choice given they are fully licensed and able to guarantee any repairs that are made. Seldom are the actual car owners able to perform their own repairs; this varies from company to company.

When searching for a car warranty for a new or used car, remembering these things can make a huge difference in the quality of the service that is purchased. The cheapest policy is not always the best policy; remember to take the deductible and the coverage amount into consideration when purchasing a car warranty.