When we talk about why people buy extended car warranties, the first reason is that most people don’t want to deal with the expense and hassle of unexpected car repairs.
First off, extended warranties can be more tailored to fit your needs than traditional vehicle warranties. These warranties are designed to cover repairs or replacements of many more parts that have been damaged or worn out by driving the vehicle.
Extended warranties also offer peace of mind. If something happens, you know that the repair shop will take care of it and the company will fix or replace your automobile. If you purchase a traditional vehicle warranty, however, you will not necessarily have this guarantee. Traditional warranties can, in comparison, be very limited. They might only guarantee that the parts will be replaced in limited conditions.
In addition to the assurance that your vehicle will be repaired or replaced should anything go wrong with it, the extended warranty also helps you budget your automotive expenses in a different way. The warranties are designed to cover any extreme or emergency expenses, and you just need to budget in a (usually small) monthly payment for the extended auto warranty.
However, some people are still a little wary of buying a used car because they fear that they will find themselves stuck with a lemon. After all, how can you ever really know for sure what a car has been through with its previous owner? Even if you go through a highly reputable used car dealer who shows you a Carfax report and details every repair, no matter how minor, upon your request, there’s still the factor of age. A 3-year-old car, even one in top condition, has simply sustained more wear and tear than a brand new car fresh from the manufacturing plant. How can you ever really know whether you will end up on the hook for some costly major repairs down the road? With an extended car warranty, that risk is gone. Your extended car warranty company has crunched the numbers and accepted the risk for you.
As we said earlier, these extended car warranties are specifically tailored to cover replacement or repairs of your automobile. These costs are far lower than the fees you would have to pay if you purchased a new vehicle. Therefore, you can save money on your car repairs and still get the benefits of owning a brand new car at the same time.
So, while extended car warranties are certainly a viable option, you should really consider some other aspects of purchasing these types of warranties before you buy one. Keep in mind that when you choose one, you do so because of a number of reasons, including the ability to reduce your monthly payment and the ability to cut down on maintenance expenses and costs.
When you buy a warranty, you will want to consider how long it will last. In some cases, you might be able to sell your car before the warranty expires. Monthly options are usually better, so be sure to look for providers that offer this option.
You will also want to make sure that the car warranties and even insurance policies you purchase are backed by the proper protection. Many of these types of warranties provide coverage against theft or damage due to natural disasters, such as tornadoes or storms, and against fires.
Another consideration is how fast you might be able to get coverage. Some extended auto warranties have lengthy waiting periods. It is vital to understand a provider’s extended car warranty waiting period. For example, Olive is a reputable provider of extended auto warranties that has no waiting period.
The last consideration, we will share with you is that you need to make sure that your automobile is covered when it comes time to put your vehicle up for sale. You should carefully review all of the terms of your warranty to ensure that you know what the maximum limit is for your coverage will be.
Make sure that you understand what it takes to apply for these kinds of warranties. These warranties are not difficult to purchase, but they are not always as straightforward as you might imagine. Before purchasing one, make sure you understand all of the necessary information, including what we’ve outlined above.