Next to your house, your automobile is probably your biggest investment. That is why it is important to find the right company to protect your vehicle. Many companies who claim to provide extended vehicle warranties are scams and just plain shady. Car Expert and CARCHEX spokesperson Pat Goss shows you how to choose an extended vehicle warranty from a reliable and trustworthy company to avoid paying for inevitable car repair.
Tip # 1 – Make Sure You See the Contract Before You Buy
Never buy a extended vehicle warranty over the phone without first seeing the contract. If an extended vehicle 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!
Tip # 2 – Beware of Common Scams & Strong Arm Tactics
Never buy an extended vehicle warranty over the phone when strong arm tactics are used to persuade you to buy today. For example, if a extended vehicle 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 for extended vehicle warranties. That is a common scam!
Tip # 3 – Safe Ways to Pay for your Warranty Policy
Extended Vehicle Warranty Buyers Beware – An extended vehicle 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.
Tip # 4 – No Haggle, Lowest 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?
Tip # 5 – Low Price Usually Means Low Coverage
If you’re not reviewing coverage when shopping price you will get stuck with a low coverage extended vehicle warranty 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 extended vehicle 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 extended vehicle warranties are not created equal. Read the fine print or pay the price later!
Tip # 6 – Things that Should be Covered.
Make sure your coverage includes “wear and tear”, and “complete seals and gaskets” coverage. Some companies claim their extended vehicle warranties cover seals and gaskets, but really only cover seals and gaskets when included in a covered component repair.
Tip # 7 – If it Sounds Too Good to Be True…It Is.
If the total price of your extended vehicle 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.
An extended vehicle warranty can help you cut down on repair costs, but only if you do it right. Research and compare auto warranty companies so you don’t get fooled! CARCHEX is endorsed by the nation’s most trusted mechanic, Pat Goss from the PBS automotive series MotorWeek and Goss’ Garage, and NASCAR’s favorite driver, Dale Earnhardt, Jr. and we have an A+ rating with the Better Business Bureau. CARCHEX has been researched and approved. We’re sure you’ll find us scam-proof too! Get a quote today!
