Buying a car is exciting. Dealing with repairs? Not so much. However, extended car warranties step in to make a promise of financial protection in the event of things going wrong. However, are they really saving you money or are they an upsell merely designed to take out even more of your wallet? In a real experience. Go here.
Promises vs. Reality
Now you’ve pulled up to the dealership and this is where you have handed over all the paperwork, just when you think you’re done, they hit you with the pitch. “Covers expensive repairs,” they say. “Keeps you worry-free,” they insist. At first it sounds like good deal, until you try to use it.
Why many car owners have been frustrated at filing a claim Exclusions are buried in the obscure words of the fine print, but some people are blindsided by them. With claim departments’ endless back and forth waiting for approvals that never seem to be approved, others are just waiting for what seems to be their last resources. There’s a good mix of genuine warranties and a great deal of ‘gotcha’ type of warranties, the ones that aren’t trying to avoid the payout.
Fines Print That Can Bite You
Many people don’t even read their warranty contract’s entire contents. Problems start exactly where. Then are some plans which cover only parts of the body and some plans come with stringent maintenance rules. Should I skip a routine service or delay an oil change? That’s enough to void your coverage.
Another common issue? Repair shop restrictions. Some warranties come with stipulations as to who you can use to service your motorhome. If that breaks down far from one, you could be out of pocket.
The Good, The Bad, and The Frustrating
Not all the extended warranties are the worst. However, some car owners have had major repairs such as engine and transmission replacements covered with no argument at all. Typically they come from fair companies with clearly written contracts.
Of course for every satisfied customer there is someone who regrets their purchase. One of the biggest frustrations? “Wear and tear” exclusions. A failed water pump or alternator may just be considered routine aging that the driver assumes is covered by their warranty. Imagine home insurance denying the repairing of the roof since, “All roofs naturally deteriorate over time.”
Should You Get One?
Should I get an extended warranty? That depends on your situation.
For buying a new car, manufacturers’ warranty will usually cover it for years. If that’s the case, it may not be worth paying for the extension. An extended warranty is the perfect way to avoid a financial nightmare if you’re driving a used car with a hyped up (unknown) history.
Experts also warn against the warranty and recommend instead to set it aside for a repair fund. You keep the money if you never have to experience major repairs. You’re not reliant on a warranty company having to approve the fix.
The Verdict
An extended car warranty can be the last financial lifesaver or the biggest money trap. What you’re signing up for needs to be understood exactly. Read the contract. Ask tough questions. Never assume everything is covered and and … After all, if your car breaks down, the last thing you want is the added surprise of a steep bill.