Auto warranty insurance is a policy that covers your vehicle, not in terms of damage from an accident, but in terms of repairs if it should break down. It is very different from the coverage offered in a standard auto insurance policy. These policies, also called service contracts, will cover the vehicle after the manufacture’s warranty has expired. Since repairs have gotten very expensive, an extended warranty will give the owner piece of mind. If a costly repair is required, the owner will not have to pay a large repair bill.
When Can it be Purchased?
Since there are many different types of auto warranty insurance policies, there are also many different options available with various times that they can be purchased. Some policies require the owner to buy at the time the vehicle is purchased while other ones will allow a purchase at a later date. Some policies may even refund your money if a claim is not submitted against it. The best advice is to carefully examine any insurance policy that is being considered and learn all of the details before buying it.
Things to Consider Before Buying Auto Warranty Insurance
As with most purchased goods, the consumer needs to answer this question, “Do I really need this product?” There are a couple of issues to consider before signing an agreement.
How long will I keep this car?
If the plans are not to keep the vehicle for a long time, auto warranty insurance is probably not worth the money. However, it may be well worth the premiums if you plan to keep the car for many years.
How well could you afford an expensive repair?
If your budget is stretched thin and a costly repair would be difficult to pay, auto warranty insurance is an excellent option.
Is there a warranty currently on the vehicle?
Buying a service contract on a vehicle that is already covered does not make much sense, so look into any warranty that may already exist. Perhaps there is presently a warranty that can be transferred to you.
Ultimately, this is your decision whether to buy or not to buy. Be cautious of any policy that is being considered and thoroughly understand what you are buying. Find out the details of the policy before it is purchased, not when it is time to use it.
Where to Buy?
There are a lot of places where auto warranty insurance can be purchased. It is always important to compare various policies to not only find the best rate but to also find a policy that offers the features that you want. If a new vehicle is purchased, the dealership may offer an extended warranty option that can be included in the loan. Many times these are very attractive policies but it is still wise to compare what other companies may offer.
One of the most useful tools to locate insurance policies and to compare their rates is the internet. This method is much less time consuming, can compare multiple policies at the same time, and does not involve sales pressure. There is time to sit back and contemplate the best policies.
Finding auto warranty insurance on line is very easy. Simply use your favorite search engine, key in auto warranty insurance, and sit back and wait. Within seconds, multiple pages of insurance offers will appear. Select a couple that look appealing to you and input the requested information.
Perhaps one of the best sites is the free auto insurance rate finder tool. Once this site has been entered, a long list of insurance carriers will appear. Comparing rates is as easy as going down the list. What could be easier?
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