If you’re thinking about purchasing an extended warranty for your car, be sure to shop around and read the fine print. Many warranties don’t cover things like routine maintenance, such as oil changes and new tires, or include a depreciation clause, which reduces the amount your warranty will pay for repairs. Some warranties also have service requirements, such as using specific repair shops, which could lead to higher costs in the long run.
A good extended warranty should cover the cost of unexpected or expensive repairs, but it’s important to understand what you’re getting into before making a decision. Here are a few tips for finding the best car extended warranty:
Research and review each provider’s reputation. Check for complaints and positive reviews on sites such as the Better Business Bureau and Trustpilot. You should also look at how a company responds to negative reviews and complaints. If a company hasn’t responded or tried to resolve issues, that’s a red flag.
The best extended warranty providers don’t charge much for their plans. CarShield, for example, has an affordable monthly plan option that includes the Platinum Plus plan, which covers almost everything except a few wear items. The company’s other plans are Gold and Silver, which provide less extensive coverage but still offer an excellent value.
One of the best parts about a CarShield warranty is that it can be transferred to a new owner if you sell your vehicle. That’s a big perk, since you might not be able to find another extended warranty that offers this option. If you do choose to sell your vehicle, the CarShield warranty can help you get top dollar for it.
Another provider to consider is Olive. It’s relatively new to the extended warranty game, but it’s quickly gained a reputation for its outstanding customer service and transparent coverage options and terms. You can buy a plan online and get a quote with no hassle, and you can see the exact coverage and exclusions in the contract before you purchase. The company even offers a money-back guarantee for those who aren’t satisfied with their policy.
It’s important to remember that an extended warranty isn’t a substitute for a manufacturer warranty. A car’s manufacturer warranty usually covers most repairs in the first few years after you drive off the lot, and it can cover the entire cost of a replacement part if something goes wrong with it. It’s also worth noting that the majority of people who buy an extended warranty don’t use it, which means you’re probably wasting your money. If you’re unsure whether an extended warranty is right for you, it’s best to create an emergency fund instead and put the money toward your next vehicle. You can always add to that fund as you go, and the funds can also be used for any future car purchases you might make.