Star ratings don’t always give you the big picture, but the details included in consumer reviews do. When claims are denied or the phone line is dead after the warranty is over, drivers are known to find each other and share stories. The vast majority of happy people just get in their cars and drive away without any issues. But readers can know nothing unless they ignore the noise and home in on the details: what items were listed, what dates named, what amounts of money, which company did and did not respond, what it said. Coverage plans may sound fancy, but the contract is what really counts. They list what is not covered but leave what is uncovered open-ended. These typically include things like pre-existing conditions, worn-out parts, infotainment systems, sunroofs, trim and emissions equipment. Typically, coverage doesn’t start until after 30 days and 1,000 miles. If you miss an oil change, your armor might degrade faster than the villain who just jumped out of hiding to menace the globetrotting spy. more bonuses
The cost for an extended warranty varies with your car, its age, the length of the warranty and where you live. Typically multiyear programs range from around $1,500 to $4,500, and the deductibles could be anything between zero and $200 per session. Some contracts can restrict the number of hours worked or mandate the use of recycled parts. It’s important to know the maximum payout, typically based on the value of the automobile at the time of the accident. This means, for instance, that if your car is worth $4,000, that’s the most you can receive. When the claims process goes bad, the consensus generally tends to be that reviews are good: the repair shop receives pre-approval, the company pays the provider directly, and the driver only has to worry about the deductible. Slower still, the driver must pay first, and then wait for the funds to be refunded. When they receive it back depends on the adjuster (though can be months) and the availability of the components. Even diagnostic scans can be a drag; it doesn’t seem quite right to pay a $180 fee if the problem isn’t cured.
In this business, leading indicators begin accumulating rapidly. Fees that seem to have fallen out of the sky, mandatory add-ons, prices that are good only “for today only,” or answers that you cannot laminate all point to trouble. As for the rest of the subliminal messaging, it’s usually best to hang up the phone, walk away or ask for a sample contract via email before you decide to sign on to anything. It’s also worth looking at those definitions in the papers carefully. Seals, gaskets, wear and tear and rules about carpool and delivery use tend to have hidden conditions. Some of its buyers are in a bind, since many of the plans can’t be modified or used on business vehicles. And make sure to read the cancellation terms. Will repayments be calculated based on what you paid, will there be processing fees and will the cash wind up with you or the lender? If you also have to chase after someone for a cancellation form, that’s an ill omen.
Real-life stories can be good and bad. In July, the air conditioner compressor of one neighbor went out. His claim was approved within a day, the shop was paid directly, and he paid only a $100 deductible. He retrieved his cold air and was ecstatic. Another friend wasn’t so fortunate; her touchscreen cracked but because her warranty did not cover it under “audio/visual,” she didn’t receive any help after appealing. She managed to get used to it by reverting to manual controls, which made her mad but smarter. Reviews of both experiences mention them, and both demonstrate how these ideas actually work.
“We absolutely want to see beyond marketing when we evaluate suppliers. Check the contract administrator, the insurer’s A.M. Best financial rating and any complaints about the insurance company in your state. Find out if your preferred repair shop will accept the plan. When you speak with salespeople, make sure to ask them three crucial questions: how much the plan will cost, what kind of parts will be used and how claims are filed. Note the speed with which they answer and how clearly they make things. Initial chit-chat has little consequence, of course, but speaking plainly can save you money.
Ultimately, it’s impossible to say which extended auto warranty is going to be best for you, it all depends on what problems your car might have, how you drive and how much risk you’re willing to take with your money. Read carefully, call, and study the contracts carefully before you sign. It is often in the fine print where hope goes to die, so the sooner you come to grips with it and your wallet does, the better.