There are certain things you should always find an answer to before commiting to a particular extended auto warranty. You will find these out by examining the contract before purchase. These include:
1. How Long Does The Extended Warranty Last?
What’s the time limit on your contract. Be sure to find out how long after your original manufacturer’s warranty it expires and whether and what the mileage limit is.
2. What Does The Warranty Cover?
Are you purchasing a listed extended auto warranty or an exclusionary auto warranty. Does the policy offer coverage for wear and tear in addition to mechanical failure.
3. What Is The Reimbursement Policy?
Some warranties require that you pay for the repairs upfront and await reimbursement from the warranty company. This could take several weeks. Find out who has to pay, and if it’s the warranty company what authorization they require to process this payment.
4. What Is The Deductible?
The deductible is the amount that you must pay at the time of a covered repair. Some warranty policy deductibles are in excess of $200.
The big question Is whether the deductible is charged per repair or per visit? This can make a huge difference. If in a single visit your car required 4 repairs you would have to pay the deductible 4 times if your warranty was a per repair rather than per visit policy.
It’s therefore important for you to find out whether each repaired component requires a separate deductible?
You should aim to select an extended warranty with a deductible that is paid per service visit and not paid per component replaced or repaired.
5. Who Does The Repairs?
Who does the repairs? A manufacturer-backed extended warranty is good at dealerships around the country, while a dealer-backed warranty may be limited to a single dealership. With an aftermarket warranty you may be able to pick your mechanic, but how difficult will it be to get repairs approved?
6. What are the maintenance requirements?
What types of routine maintenance on the car must you pay for on your own? Be sure to keep records and receipts from all service work. If you don’t it can invalidate the extended warranty.
7. Can you cancel?
Some extended service contracts charge a cancellation fee and some cannot be canceled.