We’ve been asked the question both ways – Are extended warranties good? Are they bad? In reality, they’re a bit of both. One thing for certain, we’d never recommend buying one from a phone solicitation. Here are some things to know before you consider buying an extended car warranty for your vehicle.
Understand Your Vehicle’s Current Warranty
Although most people think that their car comes with a three year or 36,000 mile (or something similar) new vehicle warranty, there’s a lot more to it than that. Your new car actually came with several types of warranties. The comprehensive one is the one we referred to above which is usually the three year/36,000 mile warranty. However, most vehicles also include a powertrain warranty and restraint system warranty. Both average five years or 60,000 miles. Some manufacturers offer corrosion and emissions warranties. Hybrids and electric vehicles may have a battery warranty. Remember, there are lots of things you can do that could void your warranty and regular maintenance isn’t included.
Extended Car Warranties Are Also Limited
They don’t cover regular maintenance. Their may be other exclusions. They also come with a monthly or annual fee. We recommend you do your research before purchasing an extended car warranty. Look at the following:
- How long they’ve been in business (a new company is likely one who operated under a different name and then closed only to reopen under a new name.)
- Their Better Business Bureau rating
- What they cover and if you have a deductible
- How much it will cost
- Exclusion period
- Which repair shops you can (or must) use and their proximity to your home and work
Once you evaluate the cost and coverage, look at the option of simply opening a savings account and having the same amount direct deposited into the account each month. How many months of the premiums will it cost to get to $600? Why that number? That is the average cost of a car repair according to AAA. You may be better off starting a savings account that you can use for repairs, maintenance, and, if you don’t need the money for repairs, eventually a down payment on a new car.
Oldsmar Automotive is Your Local Trusted Mechanic
Although we don’t file claims for you, we will provide you with the documentation required by extended car warranties to file your claim. And, of course, we perform vehicle services for non-warranty related items too. If you have an issue with your car, or it’s time for regular maintenance, come by our convenient location at 3166 Tampa Road in Oldsmar or call us at (727) 784-3501 to schedule an appointment.