How To You can buy an extended warranty for a car.

The cost of the car can go up even more because of extended warranties.Is it worth the extra expense for peace of mind?You should find out as much as you can about the deal you are being offered, what is covered, and who pays the warranty.Don't be rushed into anything, take your time and make an informed decision.

Step 1: You should know if you need an extended warranty.

The first thing to know is if you have to buy an extended warranty or a service contract.You will not be required to buy an extended warranty.If the car dealer tells you that you need to buy an extended warranty in order to qualify for financing, you shouldn't take their word for it.Ask the lender if this is true.If you buy an extended warranty and discover that your lender doesn't require you to, it can be difficult to cancel and not get any money back.

Step 2: Find out if you are duplicating the car maker's warranty.

The manufacturer will typically give a warranty for the first three years of the car, or around 36,000 miles.If you plan to keep the car beyond the period covered by the manufacturer, you should consider an extended warranty.Different manufacturers have different warranties.New and used car warranties are different.When your manufacturer's warranty is still valid, be sure to check the documents on the extended warranty to make sure you don't pay for coverage.The extended warranty won't come into effect until the manufacturer's warranty ends, so be sure to check.

Step 3: It's important to shop around thoroughly.

You don't have to buy an extended warranty when you buy a car.Since there is so much money made from these plans, you should expect very eager sales staff to encourage you to opt for the extended warranty.Don't be rushed into a decision.Before making any decisions, shop around.You can compare warranty providers online.An extended warranty can be purchased from the dealer, warranty company or agent, an insurance company, a credit union, or a broker.You can buy an extended warranty after you buy the car.As the car gets older the rates will go up.The sales staff should be prepared to negotiate the price.There is evidence that those who haggle can save a few hundred dollars.

Step 4: The variety of providers should be researched.

You should keep in mind that there are a lot of potential suppliers for extended warranties on cars when you are shopping around.There are advantages and disadvantages to this open market place.The sheer number of warranty providers can make it hard to see the wood for the trees and find the best deal for you, even though the advantages includes a wide variety of providers with numerous deals and offers available to you.It is possible to find a better deal with your main car insurance provider.It can be difficult to determine the trustworthiness of an online company and navigate through the small print.Be sure to thoroughly research any company you are considering and check if they are backed by an insurance firm with your local insurance commission.If there have been complaints made in the past, you should check the company with your local consumer protection agency.It is worth noting that extended warranties backed by the car manufacturer are generally rated the best.The minimum requirements for extended warranties will vary by state, but the policy should be available for you to read in a clear and accessible document, with full contact details for the provider.Deductibles and prior approval procedures should be clearly stated.

Step 5: Don't be fooled by potential scam.

If you are looking for extended warranty deals, you may be more susceptible to cold callers or mailings that seem to be offering you an attractive deal.These markets are subject to questionable practices so it's important to be cautious.Don't take the information in phone calls at face value.It's a sale if they say your warranty is about to expire."Final Warranty Notice" or "Notice of Interruption" are phrases designed to make the situation appear urgent and rush you into a deal.If you don't know who you're dealing with, never reveal any personal or financial information.Your driving licence number is included.Ask for time to think over a deal.Providers shouldn't try to push you into something.

Step 6: You should be clear on what is covered.

You need to carefully appraise the contract you are being offered if you decide to buy an extended warranty.This requires you to read it thoroughly and carefully.It's rare for a warranty to cover all the repairs you need.Some parts are covered and others are not.If a part isn't explicitly described in the contract, it's probably not.The brakes and clutch are not included in service contracts.Repairs of ding and scratches are not covered by most warranties.Normal wear and tear is not usually covered.There are a lot of clauses that could affect your coverage.If a covered part becomes damaged by a part that is not covered, you may not be able to claim for the repair."Internally lubricated parts" are covered by an escape clause, but only if all the seals and gaskets are in place.If a transmission seal worth a few dollars leaks and the transmission becomes damaged before you notice, the provider may refuse to pay for your expensive transmission repair.Replacement parts may be covered, but not the labour.The costs of replacing a part could be much higher than the labour costs.

Step 7: Understand what you have to do.

You may be required to do certain things in order to keep the contract valid.You may be required to carry out services that are beyond legal requirements.This could include oil changes that are more frequent than the manufacturer recommends.If you don't fulfill your responsibilities you could void the contract and not get the money back.The contract may state that you only take the car to a specific dealer for maintenance.Stick to it if you check it.Anything else is an unauthorized service.To avoid this, make sure you know what you have to do and keep complete records of your actions.All the receipts from services and maintenance should be kept in a safe place.

Step 8: How claims are handled should be determined.

You need to understand how claims are handled before you agree to anything.It's important to be clear on where you can take the car if you need it repaired.In the first instance, it's important to know who pays for the repair.Will the warranty provider reimburse you after you pay or will you have to?It could cause a lot of strain on your finances in the short-term.Knowing the level of deductible or excess you will have to pay is part of understanding how claims are handled.Before signing up, be sure to check the deductible.

Step 9: Who backs the warranty?

It's important to know which company stands behind your warranty because of the complex structure of businesses that buy and sell things like debt and insurance contracts.The car manufacturer may not offer a warranty that is backed by third parties.A manufacturer-backed warranty can be used at any dealership, whereas a third party one may be limited to where you bought the car from."Captured Warranties" are dealer-limited deals.The highest customer satisfaction ratings are given to warranties that are backed by the manufacturer.It is not uncommon for companies that provide these kinds of warranties to go bankrupt.

Step 10: How long will you keep the car?

If you intend to keep the car for many years, then buying an extended warranty is a good idea.Ask how often you trade in your car.An extended warranty may not be a good choice if you are buying a used car.It may be better to run a car into the ground if you do it a lot.

Step 11: Take your service and repair history into account.

You should think about your driving history as well as how long you want to keep the car.Do you have an unfortunate habit of driving into parked cars?It might be a good idea to get a warranty if you have spent a lot of money on repairs in the past.The wear and tear on the car will be affected by the standard of your local roads.You can compare the cost of the extended warranty to the amount of repairs you have made in the past.It's a different car, but it will give you an idea of how much you've spent in the past.

Step 12: The reliability of the car model should be researched.

Be sure to check the make and model of the car you are buying after looking at your history with repairs.You can find reliability facts and statistics online to see how your car performs over time.This isn't an exact science, but it gives you some useful data to help you make a decision.Online car forums and specialist magazines can be used to find out about particular models.The rate you are quoted should reflect this information, but it is a good idea to be fully informed.

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