How do you know you are getting a good deal on your car warranty insurance?
Two things that matter most for car warranties are the extent of coverage for repairs and duration of warranty. Any damage that is caused by wear and tear is out of the purview of warranty. Similarly, there are some items that are considered as consumables and are not covered by warranty. The third factor that determines whether you are getting a good deal for the warranty is its price. This applies for extended warranty that you have to buy after the manufacturer’s warranty expires. And there is a fourth factor too, some freebies like free towing or rental car coverage that come with warranties. How to strike a good deal has been discussed in this article.
Time of buying How much you pay for extended warranties will depend upon when you are buying it. This is same for all brands of cars from Ford to BMW and from Toyota to Honda. Most people prefer to buy it at the time of purchasing the car. This would cost much less than buying it at a time that is close to the expiry of the manufacturer’s warranty. Moreover, the cost of extended warranty can be included in the auto loan that appears to be convenient for many although interest has to be paid on it.
Know your coverage The worth of warranty depends on how well you are covered against failures. Improper cover can result in paying from your pocket for repairs that are disallowed by the insurance company. Although bumper to bumper cover is supposed to be the best, take care to read the fine print to understand what it really means. It is known that the windscreen wipers, tyre covers, clutches and brakes along with some other consumables are not covered by warranty. But is the power train covered? Many warranties have different levels of cover that are priced differently. Know the price that you are paying and the coverage that you get to ensure that the deal suits you best.
Payment pattern lowers price You could pay less for car warranty insurance if you make the payment in one go. Although insurance companies accept payment in instalments, compare the total cost and take a decision accordingly. Of course, it would also depend on your affordability. The money that you pay should also justify the period of coverage that the warranty offers. Therefore, when considering the price of warranty, do not forget to factor the extent of repairs that are covered and the period of cover.
The claims process How good the insurance deal you have struck will be determined by the method of warranty claims. Some warranty claims stipulate that you bear a portion of the cost while the rest is payable by the insurance company. In some other cases, you have to pay upfront the cost of repairs and then claim it for reimbursement. Free repairs are also admissible by some companies at designated workshops. How good the deal is would depend on how smoothly you are able to get the repairs done without hurting your pocket.