Overcoming the Natural Consumer Instinct of Extended Warranty Shopping

by Gregory Nelson

When it comes to shopping for an extended warranty, it’s hard for most used-car owners to overcome that natural consumer instinct to hunt for the best deals and the lowest prices. However, when you fall into the mindset of looking for “the best and lowest deals,” especially when shopping online, you become more susceptible to getting ripped off.

Today, the internet has become one of the first places to start looking for an extended warranty, and I think the main reason is that shoppers want a warranty without the dealer markups. While shopping on the internet can be risky with so many scams and fly-by-night companies out there, you can still make an informed decision and avoid being ripped off when you follow these simple tips:

  • Check out the company’s reputation by looking on the Better Business Bureau website or Web Assured.
  • Find out how many years they have been in business.
  •  Read consumer comments and testimonials (but keep in mind that some people just can’t be pleased, even if it wasn’t the company’s fault).
  •  Find out how easy or difficult the steps are to getting your claim filed, so you can avoid being denied.
  • See what kind of car maintenance is required to keep the warranty valid, such as oil changes every six months in order for them to pay for your repairs.
  • Find out specifically what the extended warranty covers, and ask about things such as overheating and wear-and-tear damage.
  • Ask if both parts and labor are covered.
  • Make sure there is a number you can call and an actual human you can talk to instead of only conducting business online.
  • Read as much of the small print as you can and get any questions answered that you are unsure about.

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