When you buy a new car, it comes with a factory warranty. So if anything goes wrong with the vehicle the repairs are covered. But factory warranties expire. If you want to retain the same kind of coverage that a factory warranty offers, then you can purchase an extended vehicle protection plan. Let’s see exactly how car warranties work.
Car Warranties Are Like Insurance
Your original car warranty is like an insurance plan. If something goes wrong, you bring the vehicle to the repair shop. If the problem is included under the warranty, then the repairs are paid for. The same goes for extended warranties. These plans can pay for thousands of dollars of repair work.
How Are Claims Handled?
When you have a mechanical problem or breakdown, you take your car to a licensed repair facility. If the vehicle is inoperable you can call roadside assistance. The better extended warranties include this type of service. A quality extended vehicle protection plan lets you take your car to any authorized:
- Official dealer
- National repair chain (like Midas or Pep Boys)
- Local mechanic
You should avoid warranty plans that do not let you choose your repair center. CARCHEX gives you the option to choose. Get a free online extended warranty quote now.
The mechanic determines the problem, and before repair work begins the administrator of the service contract is contacted. Once the repairs have been authorized, the mechanic can begin work. In some cases, an adjustor will be sent to look at the vehicle before repairs are made.
What About Claim Payment?
The claim payment process can be complicated if you don’t choose a good extended warranty. For example, they might make you submit a form and then wait for a check to be mailed. The best auto warranties make payment directly by corporate credit card to the mechanic as soon as repairs are authorized. This saves you from being caught in the middle of the repair center and warranty administrator. CARCHEX pays the repair center directly via corporate credit card upon claim authorization.
How Are Extended Warranties Purchased?
You can pay for an extended warranty in a variety of ways. The easiest is just to pay for the warranty plan in full at the time of purchase. There are also payment plans of up to 24 months after you pay a small down payment. The better providers accept credit cards and ACH debit payments.
Any Other Financial Benefits?
Extended auto warranties are a type of insurance for your car in more ways than one. They are a good hedge against inflation. The cost of your warranty is set upon purchase. If over the next few years, the cost of parts and labor increases, you are still covered under your original protection plan terms. This saves you money as compared to paying for the expenses out of pocket at inflationary rates.
Need More Info?
If you have more questions, take a look at some of the other articles in this information center. Or call one of our vehicle protection specialists toll free at 1-877-CARCHEX (1-877-227-2439). Protect your vehicle investment. Get a fast, free, online extended warranty quote from CARCHEX today.
Published in Auto Warranty Articles by CARCHEX on November 12, 2014