If you are planning to save money to buy a new car, there are high chances that you will not need an extended warranty. Although the dealer will push you to purchase an extended warranty, you would not really be in need of one as there are bleak chances of you having to replace the transmission or engine. In some cases, you might actually have to repair your car and the money you spend might be significantly higher than what you would spend on an extended car warranty.
As per a survey conducted, it was observed that 55% of the owners who purchased an extended car warranty did not make use of it; although they bought it just to be on the safer side. Typically, people end up spending more on the coverage than what they would spend on damages that are likely to occur. In the long run, people who do not avail an extended car warranty end up saving more than what people would by availing an extended car warranty. Typically, there will not be much repairs arising due to manufacturing defects and hence, you will have to reconsider your decision if you are planning to purchase an extended car warranty.
Satisfaction and Reliability
As per surveys conducted with regard to the satisfaction levels of extended warranties, most of the highly-satisfied people owned cars that were not manufactured by the major brands. The cost of extended warranty of a car increases as the reliability decreases. The main reason why owners of not so popular cars being highly satisfied with the extended car insurance is that, they will have to get their car repaired more comparatively and hence, feel that the extended warranty is worth the price they pay.
How do Extended Car Warranties Work?
The extended car warranties are available for both new and used cars and the buyer will not have the bear the burden in case there are expensive repairs required for the car that are not covered under factory warranty. Most of the car owners feel secure after buying an extended car warranty along with comprehensive insurance, as they will not be liable for any repairs or damages that might be required. There are bumper-to-bumper insurance policies available as well, and they cover for any types of damages that are caused and reduce your liability significantly.
Things you will have to be careful while Buying an Extended Warranty
When you are planning to buy an extended warranty, you will have to ensure that you are buying it from a legitimate agent or business, as there are multiple scams in the market. Also, carry out your bit of research to know about the offerings, terms and conditions and compare the extended warranty offerings from different companies. Even if it costs more, it is highly recommended that you avail an extended warranty from a reputed company as they will cover for all costs without any frills.