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Safe Ways to Pay for your Warranty Policy
Warranty Buyers Beware – A warranty company should always have a secure way to provide credit card or personal information as at least one option for providing payment details. Always ask if the company has secure online checkout.
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No Haggle, Low Price, Everyday Guarantee
You should never have to worry about haggling. Every customer should get the same price as the next customer who has the same vehicle and mileage. Prices shouldn’t change daily. Beware of bogus sales! Why should some customers get a sale price while you pay in full?
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Low Price Usually Means Low Coverage
If you’re not reviewing coverage when shopping price you will get stuck with a low coverage policy. We all want the best deal and to get the lowest price but remember that auto warranty pricing is based on your vehicle's estimated repairs. If the price is too low something is missing. Often labor rates on the contract are low meaning you will get stuck with out of pocket costs or the repair shop may not accept your warranty. More often it is what is in the fine print and overall coverage. Like most things in life, you get what you pay for! All warranties are not created equal. Read the fine print or pay the price later!
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Credibility is Everything when Buying a Warranty
If you have never heard of the company you are buying from or if they are not affiliated with any companies you know well, do not purchase a warranty from that company. You need your warranty company to be around to pay claims when you need them. CARCHEX is partnered with more Fortune 500 and well known companies than any other warranty company. These include CARFAX, Capital One, Cars.com, DMV.org and Lending Tree. CARCHEX is also endorsed by the nations most trusted mechanic, Pat Goss from the PBS automotive series MotorWeek and Goss’ Garage.
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If it Sounds Too Good to Be True…It Is.
If the total price of your warranty is less than the average cost of a single major repair than you can be sure that your claims will not be paid. If you’re being told that for $1000 you can have a bumper to bumper warranty then you’re not being told the truth about the level of coverage being provided. It’s impossible for an insurance company to pay your claims at that price. The average exclusionary coverage warranty policy across all vehicles is around $2000. Prices will be more or less than $2000 based on current mileage and the average cost of repairs and labor for your vehicle and the frequency that repairs are needed.
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Check the Seller's Credit Rating
You should be wary of warranty companies that are not accredited or carry a negative rating from the Better Business Bureau.
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Beware of the Name Change
Check to see if the warranty company has changed names over time. This could be a sign that the company is trying to hide something from its past. Also, be cautious when dealing with companies who have been in business for 5 years or less.
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Check the Details
If the policy is inclusionary (lists what is covered), ask to see a list of every item covered within each system and not just the system itself.
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Choices, Choices
Favor a policy that is exclusionary (lists what's not covered) rather than inclusionary (lists what is covered). Exclusionary coverage is what you had with your manufacturer's warranty.
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It Costs What ?!?!
Ask about the labor rate of your policy. For example, if the allowable labor rate is $65/hour and your mechanic charges $85/hour, you will need to pay the difference for every repair.
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Know the Cancellation and Refund Policy
Make sure you fully understand the company's cancellation and refund policy. Some companies will charge you stiff penalties for canceling a policy.
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Specialized Systems
If you vehicle has specialized systems, such as, navigation systems, ask about high tech electronics coverage.
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Things that Should be Covered
Make sure your coverage includes "wear and tear", and "complete seals and gaskets" coverage. Some companies claim they cover seals and gaskets, but really only cover seals and gaskets when included in a covered component repair.
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Make Sure You See the Contract Before You Buy
Never buy a warranty over the phone without first seeing the contract. If an extended warranty company will not show the contract prior to purchase, they have something to hide. Many companies will claim to have bumper-to-bumper coverage when they are really offering you a low-end powertrain plan and just using the term bumper-to-bumper. Beware of phone scams!
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Beware of Common Scams & Strong Arm Tactics
Never buy a warranty over the phone when strong arm tactics are used to persuade you to buy today. For example, if a warranty salesperson tells you they will put you on a blacklist of any kind that would prevent you from being able to purchase a policy in the future, DO NOT BUY FROM THAT COMPANY. No such list exists. That is a common scam!
