When you buy a new or second-hand car, it will usually already have an active warranty. This warranty is usually valid for 3-6 months before it expires. Unlike car insurance or repayments on a car loan, you aren’t legally obligated to pay for a car warranty. You don’t need to renew it when your current warranty expires. For this reason, many drivers don’t bother extending their warranty and they’re happy to drive without one. Some people don’t see the need in paying ‘just in case’ and they’d rather just pay for repairs as and when their vehicle needs them.
First, let’s cover what a car warranty is. A car warranty is a form of insurance that covers the costs of some repairs on your vehicle. Generally, warranties cover the costs associated with mechanical or electrical dysfunction in your car. Warranties don’t cover the costs of general wear and tear, such as dull or foggy headlights, worn-out brake pads, or broken windscreen wipers. There are pros and cons to getting a warranty, and it’s important that you take all of these into account when you’re considering getting an extended warranty.
Factors To Consider When Getting An Extended Warranty
So, if you’ve decided you’d like to extend your warranty, what are the main factors that you should take into account when finding a provider?
What You Need
First and foremost, you’ll need to think about exactly what you need. The different types of extended warranty coverage vary widely. For a start, think about if you are purchasing protection for your personal vehicles or commercial fleet. If you are securing coverage for commercial vehicles, there are several additional factors to take into account. After all, you want to make strategic decisions that safeguard business assets, expand your small business bottom line, and protect against other risks. Certainly, determine what you need when getting an extended warranty for your business.
Reviews And Reputation
Before you sign up for an extended warranty with any company, it’s important to check their ratings, reviews, and testimonials. Doing so will give you a great idea about how reliable and credible the company is. For example, if you check the Endurance warranty reviews, you will be able to read about other people’s experiences with the company. You can see the positives and the negatives, so you can make an informed decision on whether to purchase your warranty from this particular provider. The reputation of a company is one of the most important factors to consider. Businesses with great reputations are often the most trustworthy and reliable options to go for.
Just like when choosing business insurance, you’ll need to think about coverage on your extended warranty. Different companies offer different amounts of coverage in their warranties. Although many policies are similar, there might be subtle differences that you won’t catch unless you’re looking out for them. Before you sign up for a particular policy, make sure to read the small print. Check every aspect of the warranty so that you know exactly what coverage you’re getting. There are two main levels of car warranty coverage – mechanical breakdown and comprehensive. The option that is right for you depends on your specific needs and preferences. Discuss the options with your chosen provider to figure out which type of warranty is best for you.
Excess refers to the amount of money that you will be required to pay when your car goes in for repair or when you make a claim on your policy. Your warranty provider may have a few different excess options. You need to be clear on the amount of excess that your policy specifies when you sign up for an extended warranty. Getting a warranty with a larger excess may be cheaper to purchase, but you will need to pay more if you make a claim.
Time In Business
When you are thinking about a commercial warranty for your vehicles, you should also think about the provider’s time in business. Ultimately, you do not want to purchase warranty coverage from a provider that has not been in business for long. After all, if you purchase a five year warranty, you cannot be sure the company will still be in business. This is why it is important to work with established providers that have years of professional experience. This is where reading some online reviews, great customer testimonials, and referrals will come in handy. These provide you first-hand accounts from satisfied, and potentially dissatisfied clients.