Buying extended warranty for your car gives you peace of mind: a reassurance that you won’t have to pay huge amounts of money for any unexpected repairs for at least the next 3 to 5 years. However, you need to be vigilant when you’re picking out warranty for your car; many warranty providers tend to try and get away with loopholes in their agreement which could cost you money later on. Here are a few tips on how to choose the right warranty for your car.

Make sure you read the policy thoroughly

This first point is the key to getting an ideal policy for your vehicle. You need to know exactly what each warranty will cover and what not. If you get lazy in reading the fine print, there is a chance that you would go for a warranty that doesn’t cover what you are looking for; for example, the wear and tear a car goes through in daily usage. Make sure you know exactly what you’re paying for when you sign up for the car warranty. Take your time to find the right one for yourself.

Be aware of all limitations

Ask your warranty provider whether there is a cap on the maximum amount you can claim at once. It is crucial to know the limitations your policy will come with. In an unfortunate event, repairs may cost almost as much as the replacement price of your car; so having a cap on claims will take a toll on your own pocket. Policies with a cap that goes as high as your car’s value may be expensive, but give you the peace of mind that you won’t have to pay when you need it. Make sensible choices.

When does the company pay?

Some companies have lengthy procedures to be followed and paperwork to be completed before they pay out any of your claims. Make yourself aware, at the time of purchasing warranty, of all the paperwork you’ll have to complete in the event of a claim. If you buy a warranty and it is only after you make a claim that you find out it takes weeks to process it, you’ll be pretty frustrated. To avoid any such instance, gather all the information about your desired warranty beforehand.

What’s your share?

Some firms cover only part of your claim and make you pay for the rest. Check with your warranty provider if they keep such a clause in their policies. If you have to pay a percentage of your claim from your own pocket, you should be aware of it before buying the warranty.

Choosing a garage

Companies have selected garages you have to take your car to, in order to get the repairs they pay for. If you’re not careful, you may end up signing for a warranty that sends you to a garage situated miles away from home every time you make a claim. Check each policy for their stance on this. Some companies give you choice of garage, others give you a whole lot of options, while a few even have one specific garage they send all cars to. If you don’t want to pay for the luxury of getting to choose your own garage, make sure you buy a policy that sends you to a garage near your home. Why get into unnecessary hassle when you can avoid it.

Avoid default extended warranty

Many dealerships offer in-house extended warranty policies, which according to them cover your car for another year or two depending on the policy you purchase. However, the premium charged for this extended warranty is often much higher than any third party insurance company would charge for the same. We recommend that you shop around before you make the final call.

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