Imagine yourself driving along the highway, with windows down and music playing. The car makes a strange noise, like a robotic gargling of marbles. Your heart sinks. The Extended Auto Warranty Protection on your car just expired last month. What do you do now?
Extended auto warranties can be a great option. They are a great way to ensure your peace of mind and wallet.
Let’s start by breaking it down. A extended auto warranty acts as an insurance for the parts and systems of your vehicle after its manufacturer’s warranties expire. It covers specific component repairs and replacements over a specified period of mileage or time.
The truth is that these warranties don’t come in one size fits all. These warranties are very different in terms of cost, coverage and duration. Some only cover major mechanical failures. Others include roadside assistance, rental car reimbursement or roadside assistance.
Why spend the extra cash? Imagine that your transmission fails as you are about to leave on a road trip across the country. A repair bill easily exceeding four figures is possible without an extended guarantee. You can get one. It’s possible that you only pay a modest deductible.
Still skeptical? Still skeptical?
The extended warranty is a scam.
Certain dealers will push these warranties very hard, because they get a commission for the sale. All extended warranties are not created equal. Some third-party suppliers offer comprehensive plans with solid coverage at competitive rates.
**Myth # 2: They’re too Expensive**
You may think they are expensive at first, but consider the savings you will make in the long run! You’ll be surprised at how much you can save if you buy a warranty.
**Myth #4: My car is reliable; I don’t require one**
Murphy’s Law can cause unexpected problems to even reliable cars. Your extended warranty will protect you against unexpected expenses.
What should you look out for when shopping?
1. *Coverage details:** Be sure to understand what is and isn’t covered.
2. *Cost:** Compare the prices of different providers, but don’t go with the cheapest.
3. *Reputation:** Read reviews and ratings of other customers.
4. Can you transfer your warranty if selling your car?
5. **Claim Processing:** How easy is the process of filing claims?
All right then! Let’s start with some real life stories.
Jane, a woman who bought her dream SUV 3 years ago didn’t buy an extended warranty as she believed her car to be invincible. Her engine broke down during rush-hour traffic two years later. What was the total cost of repair? $6,000! Ouch!
Bob is another example. His friends called him paranoid, and maybe they were right. He had a broken air conditioning unit during the summer heatwave. The repair costs were fully covered by his warranty!
You can see where I am going.
But, hey! Not everyone needs one. If you plan on selling your vehicle soon or are driving an older model that’s had its fair share hiccups, it’s best to avoid buying one.
The flip side is that it could be well worth the money if:
– You drive long distances regularly
Plan on riding your vehicle until the wheels come off
Just prefer to have extra protection
Conclusion: It’s all about personal preference and circumstances. (And maybe a bit of luck too). The next time someone asks, “Is it worth an extended warranty?” you will be prepared with plenty of answers.
Always read fine print and sign on the line before you do. Otherwise, you could end up with a teapot that’s less useful.