used car warranty companies

When most people purchase a new car, they are usually asked to sign an agreement that they are purchasing the car as-is and the dealership or seller is not responsible for any repairs that may be needed. Although this often leads people to believe that there is little they can do to protect themselves against the unexpected, there are many companies that offer used car warranties for this very situation.

Used Car Warranties

Warranties for used cars are designed to help pay for repairs of any type—regardless of how large or small—as long as they are not the result of an accident, neglect or inclement weather. These warranties replace expired factory and dealership warranties and can really make a difference when it comes to paying for auto repairs. For instance, if a driver opts for a policy that has a $500.00 annual deductible and has a faulty transmission, that driver is only required to pay the first $500.00 for the repairs; the warranty company will take care of the rest. These repairs are often costly and range well into the thousands of dollars but motorists with used car warranties are required to pay significantly less.

Used Car Warranty Companies

Finding a used car warranty company is often as simple as performing an internet search; there are at least a dozen companies that operate nationwide and are happy to provide the service to drivers of any age. Things to consider when searching for a warranty company include the company’s reputation, prices, coverage and the amount of any deductibles that must be paid. This information can often be found on third-party review sites and can provide consumers with everything they need to make the best decision for their needs and for their budgets. Some local insurance companies are branching out to offer automobile warranties; check their websites for more information.

Warranty Companies vs. Insurance Companies

A used car warranty should never be confused with an insurance policy for an automobile. These are two separate entities and they help the customer pay for two very different types of repairs. A warranty covers any repairs that may become necessary as a result of normal wear and tear, defects in workmanship or defects in the auto parts themselves. An insurance policy pays for repairs that are the result of an accident or what is considered an Act of God—fire, weather or some other natural occurrence. Consumers should understand what type of coverage to expect from each policy type in order to get the most benefits from any type of used car warranty.

Price Variations

Regardless of the method in which the car warranty is purchased, the price will always vary depending on a few very important variables. First, the age and condition of the car has a significant impact on the amount of the policy. The older the car is and the more miles it has been driven, the more expensive the policy will be. Second, customers are usually able to select a deductible that fits their budgets. If they choose a low deductible amount, they will pay a higher premium. Finally, the customer must select their level of coverage. The more coverage the customer opts to have, the more they will pay for their premiums.

Used car warranty companies are available to help owners of used cars protect themselves against costly and untimely repairs. While many used cars are great and reliable sources of transportation, the costs to repair them without a warranty can certainly take a toll on the checkbook.