Auto Warranty 101

Car owners everywhere dread the day when their car breaks down on the road somewhere. Dealing with a car that won’t start at home or in a parking lot is bad side of road breakdownenough, but car breakdowns that occur on the road are a lot more bothersome to deal with. In addition to the inconvenience to yourself and everyone else, these types of breakdowns can be very costly. Towing fees, alternative transportation, and miscellaneous fees… all of these can add up quickly when dealing with a broken down car.

The Secret to Saving Money

It may be possible to avoid some – and even all – of these costs with an a vehicle service contract. The best extended auto warranties essentially offer the same benefits as money in the bank that you have earmarked for car repairs. However, you do have to make sure that the warranty you sign up for can actually be helpful to you when you need it the most. In general, you should select a vehicle service contract with the same thoroughness that you would employ when comparing car insurance policies. Some of the more important questions to ask yourself are:

  • How long do you plan to hold on to your car?
  • Are you buying new or used?
  • How will breakdown costing thousands affect your budget?
  • What features and services are you looking for in a vehicle service contract?

Vehicle Service Contracts Aren’t For Everyone

For some car owners, vehicle service contracts aren’t absolutely necessary. The recent advances in automotive technology have made cars more reliable than ever, reducing the possibility of breakdowns. But on the other hand, most new cars sold today rely on highly-specialized components and advanced systems that can be very expensive to repair or replace if they breakdown. For these reasons, purchasing a vehicle service contract might still be a good idea even if you buy a new car.

car key warranty sign

How to Get Started

Shopping for a vehicle service contract.
It is important to realize that not all vehicle service contracts are created the same. The time spent comparing the different companies is time well worth spending. In general, you will get better service from companies that have been given an A ± rating by the Better Business Bureau. You should also look for a company that has been in existence for several years, and is backed by a reputable firm.

Get a vehicle service contract at the earliest possible time.
You have the option to purchase a vehicle service contract at almost any time you want, but it would be best to get one as soon as possible. If you don’t want to pay the exorbitant fees associated with some plans, you should definitely look into buying one before the expiration of the manufacturer’s warranty.

All in all, it’s a good idea.
In most cases, buying a vehicle service contract is a sound decision. Car ownership represents a significant investment, and a vehicle service contract helps you protect that investment. With a good plan, you will be able to get a lot more years of services and enjoyment out of your car.