FAQ

1. What if your vehicle is still under the manufacturer’s warranty?

The better condition your vehicle is in when you purchase an extended warranty, the better deal you can get on pricing compared to trying to get coverage when the vehicle is already old and in disrepair. Plus, your manufacturer’s warranty may not include as much coverage or benefits as a solid extended warranty coverage.

2. What is an extended warranty, anyway?

Very similar to the manufacturer’s warranty, an extended warranty can be purchased by car owners to potentially cover the costs of parts, labor, and sales tax on qualified repairs and replacements. With the average garage charging $100 or more per labor hour, a quality extended warranty plan can save consumers $1,000’s on potential repair/maintenance bills. The older the vehicle, the higher the average cost for repairs and maintenance making extended warranties vital for anyone looking to insure against unexpected, costly repair bills.

3. How can you be sure your claim will be paid?

This is a very good question and while there is no way to be 100% certain, here are three things to look for when choosing an extended warranty company:

• Solid Insurance Backing: Although most extended warranties are issued by the company you purchase them from, they should be backed by a solid insurance company with a solid rating. This way, if the issuing company does become insolvent, your claim will still be paid by the insurance company.
• Member of Better Business Bureau or Similar Organizations: Solid, well-established companies will be in good standing with the BBB or similar organizations.
• Well Established: Companies started in the last year or two probably don’t have the solid portfolio and accumulated assets of more established companies so there is a greater risk of insolvency.

4. Do all extended warranties pay for parts and labor?

No, sadly they don’t and this is a common tactic used by companies offering "unheard of rates" to also exclude labor to help drive premiums down and make their product appear better than it really is - so read the fine print carefully and make sure the coverage includes both parts AND labor.

5. Is the cheapest coverage the best option when it comes to extended warranties?

No, in our experience, the cheapest coverage almost always is a waste of your money because when things break down and you need someone to pay the $2,000 bill for the transmission work - there is almost always some exclusion or gap in the coverage of ultra-cheap providers. So if you are paying for an extended warranty that won’t pay out when you need it most, you are still wasting every cent of your premium - no matter how great a deal you got on it!

6. Can I take my car/truck to the repair shop of my choice?

Not always - some extended warranty companies try to steer you into plans where they can decide who you can take the auto to for repairs. Only consider plans that allow you the choice of where to take your vehicle for repairs because your car is a very big investment - you should always be able to decide who works on it.

7. Do I really want to buy from companies offering several options for coverage or those with a "one-size-fits-all" coverage?

The age and condition of your vehicle, your budget, and your future plans are all factors that can determine the level of coverage you want or need - so definitely find companies that have coverage options because they can help you avoid overpaying for coverage you don’t want or even need!