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It’s no surprise that consumers are confused by the extended warranty offer. Didn’t their new car come with a comprehensive warranty? What is the need for special coverage and why is the dealer trying to sell me it?
Back in the day, car salesmen pushed the benefits of undercoatings and Scotchgard fabric protection to inflate the manager’s bottom line. not. Factory protection isn’t all that comprehensive, so you may want an extended warranty.
Automakers offer their own extended warranties, and policies are also widely available from third-party providers such as CarShield, Carchex, and Endurance. In some cases, factory warranties covering defects due to company negligence expire after 3 years or 30,000 miles, whichever comes first. Especially if you drive a lot. Of course, manufacturers’ warranties vary considerably and on some components he may last up to 10 years or 100,000 miles.
There are two types of extended warranty policies: exclusive or comprehensive. The latter sounds better, but the former is actually the wiser choice. Our exclusive policy explains exactly what is not covered. Everything else is included. In a blanket policy, car owners are out of luck if they aren’t listed. And how many consumers know all the parts that go into their car? can you list all the parts for the independent suspension system?
The best exclusion policies exclude only the most common consumables such as brake pads and tires, spark plugs, battery cables, fluids and lubricants, paints and upholstery. It’s okay if these aren’t covered.
And those same great policies are engine, drivetrain, differential, transmission, fuel delivery system, steering, seals and gaskets, air conditioning, electrical system, both front and rear suspension, brake and cooling system. Better policies also include features such as car rental refunds, tow transfers, roadside assistance, and trip interruption coverage. Also, the best exclusive companies avoid long delays by processing claims directly, without a third party.
Therefore, as an informed consumer, you should go directly to the list of exclusions and find another provider if any of the major systems listed above are included. I’m going to bounce it off. And you probably won’t win an appeal because the exclusions are clearly spelled out in company policy.
In general, automaker-provided policies tend to be more reliable than third-party-provided policies, but there are no hard and fast rules. Some third party companies have a good reputation. No matter what the salesman says, you shouldn’t feel pressured to buy an extended warranty. The Better Business Bureau (BBB) handles multiple complaints regarding pressure tactics, misrepresentations, unfulfilled contracts, and poor customer service.
This is not a strictly regulated industry and is full of scammers. Some simply collect money from their customers and provide no service at all. “There are no guarantees. It’s a complete scam,” Chad M. Canfield, an official with the Michigan Attorney General’s Office, told the New York Times. “We are in the process of some multilateral actions to shut those people down.”
Female mechanic working on car in auto repair shopDragana 991/Getty Images
In a Texas case reported to the BBB, extended warranty scammers called people with “Do Not Call” registration numbers multiple times a day and used “spoofed” phone numbers to obtain local phone numbers. and cursed customers who refused to go. with the program.
Insurance companies are looking to police themselves, and the Services Contract Industry Council (SCIC) offers these tips:
- PLEASE READ THE TERMS CAREFULLY AND UNDERSTAND ALL SCOPE AND EXCLUSIONS.
- Carefully fulfill all obligations, including proper handling.
- Keep your service contract documents, original receipts, and all maintenance records in a safe and accessible place.
- To maximize the functionality, value and enjoyment of your product, use a service contract for all eligible repairs.
SCIC is a trade association of assurance providers and claims: financial reserves and/or insurance;
But things can and do happen. What is included (or not included) in the policy matters. Other things to look for include a wide selection of places where you can get your car repaired, such as nearby garages. Warranty of pre-qualified professionals to work on the car. Transferability of the policy to the new owner if you sell the car. Protection in the event that prescribed repairs are not satisfactorily completed. 24/7 technical support gives you peace of mind even if something breaks down late at night.
The bottom line is that you should definitely take advantage of affordable comprehensive extended warranties, or consider creating a dedicated repair fund that you regularly deposit until you reach a certain amount (say, $2,000). This way the money is kept in the account, the interest is collected, and even more so if the car turns out to be reliable. You can also make periodic payments when funds are withdrawn.
Save all your repair receipts to keep track of how much money you’re spending to keep your car running. and check them. Texas-based Christian Brothers Automotive recommends reviewing all vehicle maintenance records over the past year. This includes everything from oil changes to tire and belt changes. If you spent $900, your repair budget is $75 per month. If your car is old and finicky, you’ll need at least $100 a month.
“Usually, you should keep your car maintenance money in your savings account until you need it. Add to this budgeted amount each month so that the money is available when it’s time for maintenance or repairs. ”says Christian Brothers.
US News takes an unbiased approach to its recommendations. Purchasing products using our links may incur a fee, which does not affect our editorial independence.
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