Your Considerations When Buying An Automobile Extended Warranty Plan

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"How can I afford the extended warranty plan?" some auto buyers wonder. It is a natural consumer instinct to hunt for the best deals and the lowest prices, without getting ripped off. However, the internet has become one of the best places for the keen car buyer to purchase auto extended warranties, since there aren't dealer markups. It can be a daunting task, with so many scams and ramshackle, fly-by-night operations out there, but these tips will help you to make an informed decision.

First of all, be sure you're dealing with a solid company. See that they're listed in the Better Business Bureau or Web Assured, and that they have years of experience. For example, Warranty Direct has been in business for 26 years and NWC have been in business for 20 years. Read consumer comments and testimonials, check to see if the company services any dealerships and ask if they have a reinsurance program, which means they will be good for the money, even if many people are filing claims all at once.

Secondly, understand your extended warranty plan coverage before you buy. Ask for a very clear, specific "What's Covered/What's Not Covered" list. Typical exclusions that no auto extended warranties will cover include: glass, lenses, sealed beams, light bulbs, trim, moldings, bright metal, upholstery, paint, exhaust systems, tires, air bags, batteries, brake rotors, drums, shock absorbers and throttle bodies. However, feel free to ask if they cover things like the anti-lock braking systems, overheating and "wear and tear" coverage. Don't settle for "mechanical failure/breakdown" coverage only! Also, be sure you ask whether your extended warranty begins at the time of purchase or after the manufacturer's warranty expires.

An extended warranty plan can be a good investment for some people, particularly those who own lower-end models, those who drive more than 14,000 miles annually, or those who have limited manufacturer warranties. Some people feel more comfortable having that peace of mind, but they must be careful not to assume everything is covered under their extended auto warranty. Auto owners must also be aware that routine oil changes, air filter changes, tire rotations and other maintenance is the best thing they can do to protect their investment!