10 Extended Warranty Mistakes You Need to Avoid
People often make mistakes by purchasing an extended car warranty without doing their research. However, with a little due diligence, it is possible to avoid making some of these mistakes, saving time and money. Here’s what you want to avoid.
Not Reading the Contract Thoroughly
Before making any car purchase, it’s always important to read the fine print. That is especially true when it comes to extended warranties. Many assume that an extended warranty will provide comprehensive coverage for their vehicle, but this is often not the case.
Some extended warranties only cover specific damage or defects and exclude normal wear and tear. In addition, many extended warranties have strict requirements for claiming benefits, such as requiring the customer to obtain a pre-authorization before sending in a repair request.
As a result, it’s essential to read the contract carefully before purchasing an extended warranty. By understanding the warranty’s coverage and limitations, customers can ensure they’re getting the protection they need.
Getting a Policy Not Specific to Your Needs
Never get a policy that is not specific to your needs. People are often tempted to purchase a policy that covers only repairs when they need coverage for repairs and replacement.
Or, they may get a policy with a high deductible when they would be better off with a lower deductible. The best way to avoid making this mistake is to take the time to understand your needs and then find a policy that precisely meets them.
Failing to Check the Company’s Rating and Reviews
Buying an extended car warranty without first comparing the prices of different warranties is a serious mistake that can have significant financial repercussions. Not only can you be overcharged for coverage you don’t need, but it could also mean that your warranty won’t cover all of the parts and services necessary to keep your vehicle running smoothly. Different extended car warranties offer different coverage levels and often come with varied exclusions, so it’s important to take the time to compare the prices of different warranties.
When you take the time to do this, you’re able to find the best warranty for your needs and budget. That means that rather than paying too much for a warranty that doesn’t provide adequate coverage or benefits, you can get exactly what your car needs at a price that fits into your budget. Shopping around also allows you to make sure you get coverage from a reputable company that will actually honor their warranties in case something does go wrong with your vehicle. You should always read through any contract before signing up for an extended auto warranty so you can be sure of what it covers and if there are any exclusions or restrictions. Comparing prices and going with the most cost effective option is a smart decision when it comes to protecting your car against future repair costs.
Assuming That All Policies Created Equal
Not all policies are created equal. Many people assume that all extended warranties are the same. However, there can be significant differences between approaches, and understanding these is essential before purchasing an extended warranty is necessary. One key difference is in the coverage.
Some extended warranties only cover repairing or replacing defective parts, while others may also cover labor costs. Another difference is in the length of the range. Some extended warranties only cover a limited period, while others may provide lifetime coverage. It’s important to carefully read the fine print of any extended warranty before purchasing to understand what is and is not covered.
Buying a Warranty Without Comparing Prices
Vehicle warranties are designed to give consumers peace of mind if their vehicle breaks or malfunctions. And while it’s always a good idea to have some protection for your car, you should be aware that not all warranties are created equal.
Buying a warranty without comparing prices can be a costly mistake down the road. When shopping for a warranty, compare the coverage and cost of different plans.
Failing To Ask for a Copy of the Contract
It’s happened to all of us before. We make a big purchase, whether a brand-new SUV or a certified pre-owned vehicle, and we’re offered an extended warranty. Usually, the salesman is quick to point out all the benefits of signing up for the warranty, but they’re less forthcoming about the details of the contract.
As a result, many buyers don’t get a contract copy to keep for their records. If something goes wrong with the product, they may not have any way to prove that they purchased the extended warranty. In some cases, they may be unable to cancel the warranty if they’re not happy with it.
So, if you’re considering purchasing an extended warranty, be sure to get a copy of the contract and keep it in a safe place. That way, you’ll have it on hand if you ever need it.
Failing to Ask About the Company’s Refund Policy
When you purchase an extended warranty for a vehicle, it’s essential to find out about the company’s refund policy. Otherwise, you could end up stuck with a warranty that you can’t use or that doesn’t cover the repairs you need.
Some companies will refund the entire purchase price if you cancel within a certain period, while others will only refund a portion of the cost. And some companies don’t offer refunds at all. Before you buy an extended warranty, be sure to ask about the company’s refund policy. That way, you’ll know what you’re getting into.
Purchasing a Policy Not Backed by an Insurance Company
It is essential to get a policy backed by an insurance company. Unfortunately, many people make the mistake of purchasing a policy not supported by an insurance company, which could leave them high and dry if they need to file a claim.
If you’re unsure whether or not a particular extended warranty is backed by an insurance company, be sure to ask before purchasing. Protecting your investment is crucial, and you don’t want to find out too late that your extended warranty is worthless.
Buying a Policy from an Unauthorized Seller
People mistakenly think they can get a better deal on an extended warranty by buying it from an unauthorized seller. However, this is not the case. Purchasing an extended warranty from an unauthorized source can be pretty risky.
Most authorized sellers are required to offer certain protections, such as a money-back guarantee or a minimum level of coverage. However, unauthorized sellers are not subject to these exact requirements. As a result, you could end up with a policy that doesn’t provide the coverage you need.
Additionally, you may have difficulty getting a refund or making a claim if something goes wrong with your purchase. For these reasons, it’s always best to buy an extended warranty from an authorized source.