A car is often an investment rather than a one-time expense. Aside from the price tag on the vehicle, you also have to be prepared to spend on repairs, maintenance, and auto insurance.
Auto insurance may seem like an unnecessary expense, but it’s a good way to protect your vehicle. With a car warranty, your vehicle can always get the repair and maintenance it needs. This is especially true if you choose a reputable auto warranty company.
You have numerous options when it comes to auto insurance providers. Before we explore ways to determine if an auto warranty company is trustworthy, let’s look at the different types of car warranty you can get for your car.
Factory Warranty vs. Extended Warranty
There are two types of car warranties: factory warranty and extended warranty. When you buy a brand-new car, it comes with a manufacturer warranty. This typically lasts for three years or 36,000 miles, whichever comes first. When this warranty expires, the car owner usually assumes the costs of repairs, maintenance, and parts replacement.
If you want to continue your car’s warranty, you can buy an extended warranty. You can buy this from your car manufacturer or a third-party auto insurance provider. When you buy from a third-party extended car warranty provider, you need to consider a few factors.
Tips on Looking for Reputable Auto Warranty Companies
Go for Companies with No Middlemen
Some car warranties can be pricey, so you want to save money where you can. Companies can set a lower price for their products if they don’t engage the services of a middleman. Aside from being cost-effective, dealing with such auto warranty providers is easy, direct, and quick.
With no middlemen to deal with, you can quickly contact the insurance provider if you need emergency assistance or if you need to file a claim.
Choose a Company that’s Upfront with Their Fees
Work with a car warranty company that provides transparent pricing on the coverage they provide. This means they have no hidden fees and no fleeting charges. Aside from checking quotes from these insurance companies, you can also call them up and clarify their charges.
You can also check out an insurance provider’s customer reviews and testimonials and see if there are any complaints about hidden fees or charges.
Work with a Company that Offers Customizable Coverage
It’s best to work with a car warranty company that puts a premium on your needs and unique preferences. A reputable and trustworthy auto insurance provider will listen to you. It helps you figure out what type of coverage will best suit your car and driving habits. Lastly, reputable insurance providers can often develop a service plan tailored to your needs and your advantage.
Make Sure that the Insurance Provider is Accessible
Getting a car warranty from an insurance provider is just the start of your relationship with that company. You’ll need to get in touch with the company later on when you file claims. In that case, it’s essential that you can reach the auto insurance provider when you have to.
Reputable auto warranty companies are often reachable via phone or email. Imagine dealing with a car warranty provider that you can’t get in touch with. This could be a headache especially when you need to file a claim.
Go for a Warranty that Provides Long-Term Coverage
One sign that a warranty company is reputable is that it offers a lengthy extended warranty term. For example, you just bought a car and intended to turn it in after the sixth year of use. In that case, say no to a car warranty provider that can only offer you eight years or 100,000 miles of coverage.
What’s right for you is a company that can provide a warranty that you can maximize and use for a long time.
Look for Flexible Coverage Options
You’ll know you’re choosing the right warranty company if they offer you a plethora of coverage options. You can choose from powertrain coverage or a bumper-to-bumper car warranty.
Check with your warranty provider if they also offer stated-component coverage. This coverage offers a warranty that’s only limited to specific systems and car parts. If an auto insurance provider can provide you with these three options, the provider is probably worth trying.
Check the Company’s Ratings and Reviews
A company’s customer reviews and ratings should give you a general idea of its reputation. Legitimate customer reviews also provide plenty of insights into how an insurance provider actually works when it comes to processing claims and addressing complaints.
You can check websites such as the Better Business Bureau and Kelley Blue Book for scam reports on the warranty companies on your shortlist.
Getting an extended car warranty from an insurance provider is just the start of your relationship with that company.
Takeaway
There’s a multitude of auto insurance providers on the market today. Each has its own unique offerings, including customizable plans, long-term coverage, and various types of coverage options. This is why you need to be wiser in choosing your car warranty and car warranty provider.
Use these tips as a checklist when scouting for a car warranty provider in your area. Go for warranty providers that offer comprehensive coverage and a reasonable price. Make sure that you choose an auto insurance provider with a solid reputation among its customers, as well.
Being careful about choosing an auto insurance provider may take time and effort, but it will work in your favor at the end of the day. You’ll have peace of mind knowing that you’re not working with a rip-off.
