|
CHOOSING THE BEST AUTO WARRANTY FOR YOUR CAR
If auto warranties did not help you protect your
investment and save you money, you would not buy them.
When purchasing a warranty policy, it is important that
you buy the right plan for your needs.
Important factors in determining the type of auto
warranty you buy:
-- Make of vehicle.
-- Age of car.
-- How many miles have been driven and how many miles you drive annually.
-- Amount of time you plan on keeping the car.
-- How much you want to pay out-of-pocket for repairs.
-- It is also wise to evaluate if there is any sort of coverage left over
from the original warranty.
All auto warranty plans are different. You are going to
need to ask the underwriter of your policy what the
impact is for the different factors listed above. If you
have any questions, please
contact us. We can help answer any questions that
you may have regarding auto warranties.
Determining mileage coverage:
Estimate how much you drive every year. If you drive
10k miles/year and what to protect yourself for 5 years,
you should by a five year policy that will cover you for
50k miles.
Determining what kind of policy to buy based on the
type of vehicle you own:
Learn more about the
different kind of auto warranty plans that are
featured below.
New Cars:
New cars have manufacturer warranties and will not
need any additional coverage until the manufacturer
warranty expires.
Leasing for a few years:
Extended warranties are not needed if you are
leasing a brand new car. New car leases come with
factory warranties that are more than sufficient.
If the vehicle you are leasing has more than 32,000
miles, you need to consider buying a
bumper-to-bumper policy for full range coverage. Or if
you want to buy minimal coverage that will help you save
if you encounter any major engine repairs, buy power
train warranty. Any term of any plan that you buy should
obviously only be for the duration of time you are going
to own the car.
Buying at the end of lease:
You should look to purchase your auto warranty
before the lease expires. Money will be save if you
purchase before 10,000 miles. But, you should buy the
policy before you reach 30,000 miles.
Low Mileage Used Vehicles — Up to 50,000 Miles
The most sensible auto warranty coverage for low
mile cars are bumper-to-bumper plans. A bumper-to-bumper
plan should be purchased before the car reaches 10,000
miles. You can not buy a bumper-to-bumper after 50,000
miles.
Moderate Mileage Used Vehicles — Between 50,000 to
100,000 Miles
An inclusionary policy is the best option for these
types of vehicles. This type of coverage will protect
you from having to pay for the repairs of major
components in your car.
High Mileage Use - Over 100,000 Miles
The only type of auto warranty plan that should be
considered for cars with high mileage should be a power
train policy. Its the least expensive type of plan and
will cover the transmission, engine, drive shift and
drive axles.
|
