April 16, 2014 - by
Vehicle repair bills can be expensive and may create financial difficulties for many families. With this in mind, one of the best ways to give yourself financial protection in the event of a vehicle break down is with extended auto warranties, also known as mechanical breakdown insurance or vehicle service contracts.
Here is how you can benefit from having an extended warranty for your used or new car:
- Approved vehicle repairs are paid for.
- Roadside assistance comes with almost every protection plan.
- Extended warranty increases vehicle’s resale value.
- Towing and car rental will be paid for if the repair is approved.
- The car can be repaired at the shop of your choice.
How Does it Work?
Extended auto warranties work by extending the coverage that was originally under your existing vehicle manufacturer. This means that you pay a premium to receive warranty coverage for a specific period of time. Your premium will vary depending on the type of policy you buy, the age and miles of your vehicle and what type of vehicle you drive.
Depending on the policy provider you select, you will have your choice of several plans. The basic plans cover major vehicle components such as your engine and transmission. Meanwhile, the more comprehensive plans can provide bumper to bumper coverage. They may also include useful features such as roadside assistance and rental car reimbursement. To choose the right plan for you, be sure you understand which parts each policy covers that way it can help you make the right choice.
Filing a Claim
Furthermore, you will also want to discover how the policy provider processes claims. Depending on the provider, you may have the freedom to take your car to the shop of your choice while others may have you take your vehicle to one of their shops. You may also have to pay a deductible, which is a fixed amount of money you have to pay. Once you do this, the provider will pay for the rest of bill and you will be back on the road in no time.
A common misconception about extended warranties is that they are very expensive. The price of the protection plan depends on the vehicle’s age, make, model and mileage. The newer your vehicle is – the cheaper the policy will be. Did you know that $1600 transmission repair today could cost twice as much to repair four years from now. To learn more about how much an extended coverage for your vehicle can cost, read our recent article: “How Much Will Extended Car Warranty Cost?”
By having an extended auto warranty, it can protect you from costly repair bills. If you are ready to begin shopping feel free to use our website to compare different providers and read auto warranty reviews. We only work with the best insurance providers that way you know that the provider you select has a good reputation. Once you choose the provider you can fill a quick online form to receive quotes on their website or simply give them a call. This is a simple way to shop between great policy providers. Best of all, you can do this from the comfort of your couch.
As repair bills can be high for major breakdowns, it’s important that you have the financial protection you need so you don’t have to incur huge expenses to fix your vehicle. This is where extended auto warranties can help, as they can pay for repairs thereby giving you the assurance that if the unexpected happens, you won’t have financial difficulties due to it.