"Find the best Auto Extended Warranty. Protect your investment with an auto extended warranty company that has over 25 years in the auto warranty business and has paid over $500 Million in car warranty claims.

  The purchase of an auto extended warranty is a critical decision that is vital with today's high tech automobiles. Having just one breakdown can rack up some major repair expenses.  Having the right auto extended warranty from the right extended warranty company can protect you from having to pay "out of pocket" for automobile repairs.  An extended warranty can give a consumer that extra "peace of mind" after that major purchase, or after the manufacturers warranty has expired.  There are some things you need to know about getting the best deal on an auto extended warranty. While it definitely is a wise decision to purchase an extended warranty, I recommend that consumers purchase the extended warranty contract direct from the extended warranty company, such as WarrantyDirect. 

GET THE FACTS BEFORE YOU BUY a NEW OR USED CAR. Avoid pressure tactics from car dealers who want you to buy a car extended warranty from them so they can mark up the price, sometimes, up to 300%.  Online extended warranty purchases eliminate "the middle man".  You don't have to buy the extended warranty at the time of your new or used car purchase. Just say no!  Online extended warranty companies offer the same extended warranty protection for less money.  You will save ''Big time".

How do I know this?

  Well I know car dealers prey on your emotions, while selling you. I know this because I have fell victim of the pressure tactics, as you may have as well. If you have, I know exactly how you felt. Auto dealers know you are anxious to get out of the dealership as soon as possible with your new or used car.  So some dealers simply lie to you by claiming that you must buy the auto extended warranty from them in order to qualify for the auto loan.  Auto dealers make a nice commission off you with these type of "black hat" tactics.  I once bought a car from a dealer when I was in my early twenties and fell for the, 'you need to buy the extended warranty to qualify for the loan, gig.  I was young and didn't have much credit, so I fell for it.  Before I knew what was going on I was sold an extended warranty, life insurance policy, and window etching.   This added an extra $5500 to the price of the car.  All of this extra money I owed was conveniently rolled into my monthly payment.  So I paid for a marked up extended warranty, life insurance policy, and window etching.  Well at nearly 10% interest on my car loan, I was paying even more for my auto extended warranty, since it was included in my high interest auto loan from the car dealer. 

Please, don't get burned like I did, get your new or used car extented warranty quote before you purchase your car.  Remember, you don't have to buy your auto extended warranty at the time of purchase.  Getting an auto warranty quote ahead of time will give you extra leverage when negotiating with car dealers.  However the newer that your car is, with lower mileage, the lower your extended warranty quote will be.  Also you lock in a lower rate that will be the same when your vehicles manufacturer's warranty expires. 

 'Find an extended warranty company that will let you choose the place in which you take your car for repairs and whom pays the repair facility directly.  Never pay out of pocket for auto repairs and then try to get reimbursed.

Before committing to an extended warranty and an auto warranty company, such as WarrantyDirect you should take the time to fully explore the ins and outs of the various coverages and providers.

Don't let the price of the auto extended warranty be your deciding factor.  Cheaper is not always better.  If you do your research, you'll soon discover like most consumer purchases, you get what you pay for.  A good policy, that always pays their claims every time, is well worth the investment. 

While many coverages look similar; there are huge differences in the language used in the different extended warranty contracts such as…

• Who administers (pays the claims) the coverage?
• How does a company define what they will pay for?
• Will the coverage provider pay the retail labor rate your dealer charges?
• What does the fine print say?
• What are reliable independent resources?

  In buying an extended warranty, as in so many other aspects of life, it’s important to be fully informed before making your purchase.  Before committing to a warranty and a warranty company, take the time to fully explore the ins and outs of the various coverages.  Many coverages look similar; you should request copies of every contract you are considering, and then compare them to determine what best fits your needs.  If a warranty seller will not let you see this before you buy then you should look elsewhere.

Here are some questions you should have answered before purchasing your automobile warranty: 

  What is the value of an automobile extended warranty?

There are many reasons to purchase an automobile extended warranty. Your vehicle is one of your biggest investments. An extended warranty will insure it is always in the best mechanical condition. With the complexity of today's vehicles, one repair can often cost more than the extended warranty. Hourly labor rates average over $80.00 nationwide with many markets over $100.00 per hour. An extended car warranty will provide you with peace of mind, knowing you only pay one price no matter how many repairs your car needs. Beware of auto warranty contracts that severely limit the amount they will pay for a claim or for total claims over the life of the auto warranty contract.

Have consumer publications weighed in on automobile extended warranties?
 

What company stands behind the car warranty? We referred earlier to the term “administrator”. An extended auto warranty may be backed by a third-party warranty company or by the vehicle's manufacturer. Knowing who will be administering your policy can give you insight into the potential weaknesses of the coverage you're considering and their ability to pay claims. Administrators act as claims adjusters, authorizing the payment of claims to the service repair facility under the contract terms. Third party warranties score very highly when it comes to ease of use according to J.D. Powers & Associates. Surprisingly, third-party warranties are often less expensive and offer broader coverage levels than those offered by the manufacturer. If you decide to purchase a third-party warranty, make sure they have the financial resources to meet their obligations under your contract. After all, the ultimate measure of a warranty company is ensuring that your claims are paid quickly and easily. One should also look into the performance record of the car warranty administrator. The Internet offers numerous sites where one can research whether or not a company stands behind its promises. Here are a few sites to get you started. Better Business Bureau WebAssured.com Consumer Affairs Dun & Bradstreet There are many web sites offering warranties today. Very few web sites are direct administrators of the car warranties they sell; in other words, they have nothing to do with paying your claim. Prices vary considerably as do coverages. Remember, it is the administrator (the company that pays your claims) of the warranty that you should thoroughly investigate. Some web sites even go as far as changing their website name to hide their poor consumer records.

Does the auto warranty company possess the necessary licenses/registrations to sell coverage in your state? Many of the 50 states have licensing/registration requirements to make sure auto warranty companies are financially sound and/or properly insured. A growing number of states, including New York, Florida and California have very strict requirements when it comes to issuing licenses. While your state may not regulate coverage, searching for a company that meets the requirements in the states that do can help you to narrow your search. Warranty Direct’s ability to market in all states reflects our financial stability and claims history.

What does the extended warranty cover? How does it define what it will pay for? There is no standard protection or level of coverage from one provider to the next. You should be familiar with the terms of the coverage you are looking at and ask questions when the terms look vague or ambiguous. Extended vehicle warranties come in many levels of coverage with many different definitions on what the coverage will pay for. Some car warranties cover mechanical breakdown, while better warranties will cover wear & tear failures, seals & gaskets, the emissions system and not exclude damage due to overheating.

Bumper-to-Bumper Automobile Warranties (aka Exclusionary Auto Warranties): Bumper-to-bumper auto warranties represent the highest level of coverage available. Be careful, many companies use these terms quite loosely. By definition, a bumper-to-bumper plan is exclusionary, that is, it will only list the parts NOT covered, just like your factory warranty. Make sure to read the full list of the exclusions as they are not all the same. If an extended warranty lists the items that it covers, it is NOT a true bumper-to-bumper warranty.

Named Component Auto Warranties These types of car warranties (yes, there are many different levels of named component coverages) will list the parts that are covered. If a part is not on the list, it is not covered. One can buy a car warranty with as few as 50 or so parts covered to as many as 750 with varying levels in-between. Don’t be fooled, while a named component automobile warranty may look as complete as a true bumper-to-bumper warranty, they are not nearly as comprehensive.

Wrap Warranties Wrap warranties, like our PowerWrap+, are specialized bumper-to-bumper warranties for particular vehicles with powertrain warranties (engine and transmissions only) that run longer than the vehicle’s standard warranty (usually 3 years/36,000 miles).

Where can you take your vehicle for repairs? How are claims handled? An extended warranty from the manufacturer will require that you obtain service only from them. You want to look for a warranty that gives you more than one service facility to choose from. You'll appreciate this if the vehicle ever need service while you're on a road trip, miles away from home. Many people prefer to go elsewhere for repairs as car dealers often charge higher rates and have long waiting times for repairs to be done. Many third party auto warranties will allow you to choose where you have your repairs done. The better, more established companies can tell you if they have already done business with your repair facility of choice. Click here to use our Repair Facility Search database. Beware of companies that require you to handle the entire claims process and wait to be reimbursed. Better auto warranty companies will allow you to take your vehicle to the repair facility of your choice and leave the rest to your dealer, paying the repair facility for the repairs immediately via credit card with no paperwork or billing hassles.

What is the nature of the deductible? Fully investigate a policy's deductible before signing on the dotted line. Consider not only its amount, but also whether it's per repair visit or per repair. With a per visit deductible, each visit to the shop will run you a fixed amount, regardless of how many parts are repaired; a per repair deductible applies to each serviced part. What sounds like a minor difference could have a major impact on your wallet.

Is the warranty transferable? Some warranties end when the person who bought the warranty sells the car. A warranty that allows you to transfer it to a new buyer is preferable; it's also an excellent selling point for prospective buyers and an added value when you decide to sell your car.

What exactly is the extent of the auto warranty coverage? Know what's covered -- and what's not covered -- by the auto warranty you're considering. Does the contract only cover mechanical breakdown? These are very limiting plans. Examples of common repairs that may not be covered under a mechanical breakdown plan are valve jobs, piston rings, slow moving power windows, suspensions problems and many others. Look for coverage that includes wear and tear failures. Under a "breakdown" warranty, coverage is extended only to parts that break. Not all parts fail due to breakage; some need to be replaced because they've worn down over a period of time. A "wear-and-tear" vehicle warranty extends coverage to worn-down parts in need of replacement. Hint: Look in the contract under the definitions section. If you see the term "mechanical breakdown" or "gradual reductions in operating performance" you are not getting a wear and tear plan. Overheating -- regardless of its cause -- isn't covered in many warranties. Thus, if overheating occurred due to problems with an expensive part such as your radiator, you will be stuck with a hefty repair bill. If an extended auto warranty excludes damage due to overheating, you can bet you will find other huge coverage loopholes in the coverage contract. Additionally, some "entry level" contracts don't cover ABS brakes and many of the luxury options common in today's vehicles, so if your vehicle has these features, you should consider upgrading to a higher level of coverage.

When will the auto warranty expire? Some automobile warranties have terms that start from the original in-service date (the original purchase date) of your car. This is a sales tactic that companies use to make the contracts appear to have a longer coverage term. If you purchase an extended warranty that begins the day you buy it, the date of expiration will be clearly defined. In addition, you should check the contract to see if there is a waiting period before you can use your extended warranty. Some companies have waiting periods as long as 30-60 days and 1,000-2,000 miles before you can file a claim.

I'm still covered by the manufacturer’s warranty. Why buy it now? A common misconception is that by waiting to purchase your extended auto warranty, you will get coverage for a longer time at the same price. While you can purchase coverage at any time, the cost for coverage rises as the vehicle ages and accrues mileage, much like life insurance costs rise as we age. Put another way, you are buying tomorrow’s coverage at today’s rates.

What risks do I have if I delay purchasing coverage?   Coverage costs rise annually as parts and labor costs rise. Labor rates have risen by an average of $20 per hour in the past 3 years. As the vehicle ages and more repair data becomes available, many vehicles are placed into higher rate classes. Once you buy coverage, your rate class can not change. As the vehicle accrues mileage, it moves into higher rate classes.

My vehicle is out of warranty. What about inspections? The inspection process is designed to protect you from having a claim denied due to a pre-existing condition. You should be aware that a high percentage of warranty claims that are denied cite pre-existing conditions as the reason. Of course, those companies do not inspect your vehicle prior to issuing you coverage. An inspection protects you from this. The better and more reliable automobile warranty providers will require that an independent inspection of your vehicle be done before coverage is initiated. This inspection protects both the consumer and warranty company and keeps coverage costs down. "In looking at some of your competitors, they did not require an inspection for an out of warranty vehicle like you did. They tried selling this to me as a benefit. The fact of the matter is, how can they cover a vehicle that has no factory warranty without inspecting it? I imagine a lot of people fall for this tactic and end up with claims being denied for pre-existing conditions. You need to promote this factor and save people from making decisions based on convenience."

Let's Recap Things to consider when purchasing an extended warranty.

1) There are many reasons to purchase an extended warranty. Your vehicle is one of your biggest investments. An extended warranty will ensure it is always in the best mechanical condition. With the complexity of today's vehicles, one major repair often costs more than the extended warranty.

2) You’re never buying double coverage. All extended warranty prices take into account your manufacturer’s warranty, if any, and take over after it expires. Your car warranty is less expensive the earlier you purchase it. As the vehicle ages and accrues mileage, the price for protection rises. Prices may also rise due to increasing labor and parts prices. You will be offered the lowest price and longest term the newer your vehicle is. Why not lock into today's low prices and protect yourself from tomorrow's rising repair rates?

3) You don't have to purchase the extended warranty contract where and when you buy your car.  Don't let sales people pressure you into buying the contract now.  Just say no. Go with a company that will sell you a better contract, months after your initial purchase and doesn't care where you bought your car.   

4) Buy the extended warranty directly from the warranty company.  Don't pay double for the same contract.  Purchasing the Extended Warranty from the dealer will definitely be more expensive.  Why do you think car dealerships corner you in a small office, with the air conditioning turned down to 58 degrees, a casual conversation to distract what they are truly doing, and then pressure you into buying the extended warranty?  Sales people make their money by marking up the price on extended warranty contracts. Not only that, they are willing to get you a better interest rate on the vehicle if you buy the extended warranty here and now.  They not only mark up the price on the extended warranty, but also get you with the finance charges, which they have conveniently rolled into your purchase price.

5) Most extended warranty companies let you use the repair facility of YOUR choice (dealer, national chain, local mechanic) and pay your claim via corporate credit card. They cover parts, labor and even sales tax. There is no paperwork, no need to lay out any money and no limit on the number of claims you may have.

6) Make sure that the extended warranty is transferable to a second party, should you decide to sell the covered product.

7) Never buy an extended warranty contract that doesn't let you cancel the contract in the first 30 days.

8) Always get an approval from the warranty company for the repair before authorizing a shop yourself to do the repairs.  Never allow an unauthorized repair shop to do any diagnostics even for convenience.  This could and will probably void your warranty.

9) Buy the contract separately from the automobile loan and avoid paying high interest charges on the contract.

10) Maintain the vehicle in accordance with the manufacturers scheduled maintenance recommendations.  Save all of your receipts when scheduled maintenance is performed.  Failure to do this may result in your warranty being voided.

11) Insurance provides peace of mind but most important is the financial stability of the administrator. Administrators act as claims adjusters, authorizing the payment of claims to the service repair facility under the contract. Find out if the insurer and re-insurer of the contract has been rated by A.M. Best and/or Standard & Poor's; this will give you an indication as to its ability to pay your claim should the administrator go out of business. Make sure you have the names of the administrator, insurer and re-insurer to do your research.  Some companies do not easily disclose this information to the consumer.  You should also go to www.bbb.org to get the reports on the company you are buying from, as well as the administrator of the contract. 

12) Many coverages offered look similar, until one looks at the actual warranty terms and conditions.  Ask for a copy of the actual contract before you buy. Know what's covered -- and what's not covered -- by the warranty you're considering. Does the contract cover breakdown as well as wear and tear? Under a "breakdown" warranty, coverage is extended only to parts that break. Not all parts fail due to breakage; some need to be replaced because they've worn down over a period of time. A "wear-and-tear" warranty extends coverage to worn-down parts in need of replacement. Additionally, some "entry level" contracts don't cover ABS brakes and many of the luxury options common in today's vehicles, so if your vehicle has this feature, you should consider upgrading to a higher level of coverage. And overheating -- regardless of its cause -- isn't covered in many warranties. Thus, if overheating occurred due to problems with an expensive part such as your radiator, you'd be stuck with a hefty repair bill.

13) Some warranties have terms that start from the original in-service date (the original purchase date) of your car. This is a sales tactic that companies use to make the contracts appear to have a longer coverage term. If you purchase a warranty that begins the day you buy it, the date of expiration will be clearly defined.

In addition, you should check the contract to see if there is a waiting period before you can use your extended warranty. Some companies have waiting periods as long as 30-60 days.

14) If you decide to purchase your extended warranty through a dealership or online company- and the contract is backed by a third-party administrator, make sure your payment is forwarded and that you have written confirmation of your purchase. Some consumers have discovered too late, that their payment was never forwarded, leaving them with no coverage months after signing the contract.

Car Extended Warranty Get tips on buying an auto extended warranty.  Visit online car extended warranty companies for a free auto extended warranty quote.

Electronics Extended Warranty  Information on electronics extended warranty buying, Plasma TV extended warranty, buy an extended warranty online and save.  Get a free extended warranty quote.

Home Warranty Get information of Home warranties.  Protect your investment and improve your home's value with a home repair warranty.

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Warranty Direct Offers auto extended warranties and boat extended warranties.  Warranty Direct has a 23 year track record in the extended warranty industry, offers bumper to bumper coverage, roadside assistance, and custom warranty contract coverages to meet your specific needs.

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