2 Ways to Spot a Good Auto Warranty

You’re probably shopping for an auto warranty because you heard it could potentially save you thousands of dollars in future repairs. BUT if you aren’t familiar with what to look for, it could end up costing you thousands of dollars. So, if you want to feel confident in picking the right one, make sure you know what to pay attention to.

Generally speaking, I can show you how to identify a good auto warranty by paying attention to 2 things:

1. Know the specifics of the auto warranty contract
2. Find out the reliability of the auto warranty company

When looking at the specifics of the contract, it’s important to fully understand the fine print of the auto warranty before purchasing. Looking past the price alone, you’ll want to ask the following questions before signing on the dotted line:

• Where can repairs be performed? Repairs covered under the auto warranty may require you to visit a certain repair shop.
• What kind of coverage am I getting? There’s a difference between wear-and-tear coverage and mechanical coverage.
• Do auto warranty payments require reimbursement? Under some plans, the car owner is required to pay the repair bill and then send in a receipt for reimbursement. It’s best to avoid this type of plan if you can.
• Can the warranty be transferred? If you want the ability to transfer the warranty to the new owner when you sell the car (it’s an added selling point), you’ll want a car warranty that is transferable.

Next, when researching the reliability of the auto warranty dealer, it’s important to know that there are lots of fly-by-night companies that don’t have your best interests in mind. Therefore, select a company that has been in business for many years and has a credible history.

You can always do some quick and easy research about the company online by checking the Better Business Bureau website or Web Assured.

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