There are hundreds of sources for an extended auto warranty, and unfortunately the majority of the warranties offered aren’t very good at all. Therefore, you should be diligent in your research for an extended warranty and a reputable company. Make sure to check with the Better Business Bureau, and contact your State Attorney General’s office to inquire on the reputation of an extended warranty company. There are some very good warranty companies out there, just do your home work. Some extended warranty plans don’t cover very much, or they make using the coverage extremely difficult. Therefore, sometime these types of policies are not even close to being worth what you might pay for them. Good extended auto warranties are not cheap, but they are a lot less expensive than major repairs on a vehicle. If you are looking for plans that offer the best coverage for extended auto warranties, here are some things those plans should include:Coverage for Breakdown AND Wear and TearA lot of extended warranties only cover mechanical breakdowns, not wear and tear. The best warranties cover both.
$0 or Limited Deductibles
Some extended auto warranties charge a deductible for each part required, the best warranties provide for $0 or very low cost deductibles.
Well Funded and Insured AdministratorThe best extended warranty providers deposit some the revenue collected from premiums into “Clams Reserve Accounts” to ensure that funds are available to pay claims.
Car Rental, Towing and Travel ReimbursementSome cheaper extended warranty plans don’t cover rental car reimbursement and towing. The best extended warranties offer complete 100% reimbursement for car rental and towing. The very best policies even reimburse you for travel expenses associated with car breakdowns and repair.Warranty Is TransferrableMost extended warranty coverage plans terminate immediately when the car is sold, traded in or transferred to another person. Premium extended warranty plans allow you to transfer the warranty coverage to the new owner of the vehicle.
Coverage for ABS Brakes or OverheatingThe majority of extended warranty plans don’t include coverage for repair of ABS brakes or overheating issues. Even some expensive warranty contracts don’t extend coverage for these areas; however, the best warranty plans cover these types of very expensive repairs as well.Coverage Offers Flexibility to Choose ShopThere are many extended warranty plans that require you to use a certain repair shop for repairs or service. The best extended warranty plans allow you to take your car to any ASE certified mechanical repair shop.
Coverage Pays the Shop DirectlyUnder the terms of many extended warranty plan contracts, you’re required to first pay for the repairs – then request reimbursement. However, with the very best extended warranty plans, the plan administrator or insurer pays the repair shop directly.100% Money Back Guarantee In the event you are not satisfied with your extended auto warranty plan, quality plans allow for the cancellation and refund of the policy within 30 or 60 days. With lesser quality plans, there is generally no refund option available whatsoever.