Extended Warranty Pricing
Best Auto Extended Warranty Varies by Person
If you are looking for an extended warranty for your car, you don’t want to settle for the first company’s offer that comes along. No; like any large purchase, to find the best auto extended warranty, you are going to have to shop around. A simple search online will reveal hundreds of different companies, and certainly, you cannot be expected to approach each and every one of them to get information for a true comparison. So how can you narrow the search parameters, and focus on the companies that are most likely to offer you the best deal?
You can start off by finding out what company your dealership goes through. An extended warranty, even when it is sold to you by the dealership, is usually obtained through a third-party company. You can simply call up your dealership, and ask them what company they use. They may or may not tell you, but if you are planning to make the purchase through the dealership, make sure you know what company you are actually dealing with before you sign. If your dealership insists on being secretive, think about looking elsewhere.
You can also check an online forum for your make of car for suggestions. People who own the same make, model and year of car as you do are likely to encounter the same issues that you will, warranty-wise. Check the online forums and chat boards to find out what problems are typical in your car, and what companies other owners have dealt with for extended warranties. These sorts of bits of information can help you to narrow down your search as to what type of warranty coverage you should select for your car.
Another option is to find a reliable local broker. A broker can help you to get the lowest possible rate for the type of warranty you would like to get, because they typically deal in high volumes. They will gather together the warranty requirements of several people at a time, and have the companies they deal with bid on these quotes as a whole. This will likely get you the best auto extended warranty price, but make sure you understand what the broker gets in return. Some brokers are paid a sort of “finder’s fee” for bringing in new customers, while others might charge a fee to you for finding the best deals. Understanding what those costs are, before going in, will help you determine the total cost of your warranty, and make sure that your cheapest option does not cost more than it ought to.
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About the Author
A service contract is a promise to perform (or pay for) certain repairs or services. Sometimes called an “extended warranty,” a service contract is not a warranty as defined by federal law. A service contract may be arranged at any time and always costs extra; a warranty comes with ONLY a new car and is included in the original price. A vehicle service contract used to be referred to as an “Extended Auto Warranty.” The separate and additional cost distinguishes a service contract from a warranty: Get Your 100% RISK-FREE QUOTE TODAY
SquareTrade’s Vince Tseng on Fox Morning News Answers Your Extended Warranty Questions
