Extended Car Warranty
I was poking around online the other day, searching for an extended warranty for my wife's new Genesis. Googling "extended car warranty" returns so many different options to choose from, it's mind boggling! How is a person supposed to sift through all of this information in a reasonable amount of time to find the one that fits their needs?
I guess I was lucky in that I have been in the industry for years and years and know what to look for, but I feel for those people who are looking for a good value in extended car warranty protection that will bring them maximum peace of mind. So I thought I'd sit down and write to you, to give you guidelines and help you through this process.
When looking for a good extended car warranty you will first want to examine your particular vehicle:
- Manufacturer's Warranty
- How Your Car Is Equipped
Manufacturer's Warranty
What type of full manufacturer's warranty is on the vehicle? In the case of my wife's Genesis, Hyundai places a 5 year/60,000 mile full manufacturer's warranty on it from the start! Sounds like a pretty good deal, right? Well, it is the longest full manufacturer's warranty out there today, and it is very extensive coverage.
However, it's a fact that most components on a vehicle tend to break down after the manufacturer's warranty has expired, and indeed the full manufacturer's warranty is really there to cover defects in quality and workmanship, without taking into consideration the deterioration put on the components after time and mileage have elapsed.
This is why it is so important that your vehicle is protected once that manufacturer's warranty has expired; not only will it save you considerable out-of-pocket expense, but it will also save you the headache and hassle that seem to go hand in hand with car repairs. And it's best not to wait to purchase protection until your manufacturer's warranty has expired, because as the mileage increases on your vehicle, the cost of the coverage will increase as well. If you purchase protection while your mileage is still relatively low, you are more likely to get the lowest cost in extended car warranty coverage available.
How Is Your Car Equipped?
What kinds of bells and whistles does your vehicle have? Do you have any of these systems:
- Navigation System?
- Electronic Stability Control (ESC)?
- Anti-Lock Breaking System
- Blind Spot Information System (BLIS)?
- Backup Camera?
- Collision Avoidance System?
- Continuously Variable Transmission (CVT)?
- Tire Pressure Monitoring System?
- Hybrid Vehicle?
- Microsoft Sync?
- Turbo?
- Four-Wheel Drive?
It is no joke that vehicles are getting to be more and more complex every day. Manufacturers are trying to make our lives easier and safer with all of the added features and gadgets on cars today, but just as they are making our lives easier and safer, they are also making the car harder and harder to repair. And by harder I mean more costly.
Examine your vehicle for these costly bells and whistles; while convenient and even necessary, keep in mind that when they break down it will cost a pretty penny to get them fixed. This is why it is essential that you find a quality extended car warranty that covers these costly components. Don't be afraid to examine the contract itself; housed within that legalese is the backbone of your vehicle protection, and it will tell you everything you need to know about the components that are covered under the extended car warranty.
After you take a good look at what you need for your particular vehicle, examine your own needs.
- Additional Features and Benefits
- Cost
Additional Features and Benefits
What kind of additional benefits would you like included in your extended car warranty (more accurately called mechanical breakdown protection but for the purposes of this article, we'll continue to use the common usage)? Every extended car warranty comes with additional features that are standard with the contract. A good additional benefits package for your ideal extended car warranty should include:
- 24-hour Roadside Assistance
- Rental Car Coverage
- Tire Protection
- Trip Interruption
In my book, the most important are 24-hour Emergency Roadside Assistance and Rental Car Coverage. Both of these are essential in an extended car warranty because they are the two benefits that will most likely be used when your vehicle breaks down.
You can call Roadside Assistance when your car needs to be towed to the repair facility, and you can tap into your Rental Car Coverage when your car is in the shop overnight and you need a vehicle to get you where you need to go. Two more additional features that I like are Tire Protection for when your tire needs to be repaired or replaced, and Trip Interruption for when your vehicle breaks down far from home and you have to pay for meals and lodging.
Cost
Let's face it, cost is probably our driving factor in most everything we purchase. An extended car warranty is not likely to be any different. Extended car warranty prices will generally be reflective of a particular vehicle's age and mileage, not to mention the vehicles reliability history record and cost of repairs. An underwriter will take all of these factors into consideration to determine the cost for each term and level of coverage.
In addition, the cost will include a margin to cover the underwriter's expenses. If your extended car warranty provider also has a separate administrator (the company that handles (claims and cancellations), the price will include their expenses as well.
The ideal scenario to look for is a provider that is both the underwriter and the administrator; this way you're certain to get a lower cost since you're not paying for the expenses of a separate administrator, not to mention underwriting, claims, and cancellations will be housed under one roof to prevent confusion and mix-ups.
I know it's difficult to find that extended car warranty that is right for you. Believe me, I've purchased a lot of vehicles and I have made sure I had a good extended car warranty on each one. Each involved a certain amount of research on my part, but the good thing is that these days the research can be done from the comfort of your own home. However, let me share the name of the company that I have purchased my extended car warranties from time and time again: Mercury Insurance Group. Here are some of the reasons why I like Mercury:
- Mercury is both the underwriter and the administrator
- Mercury has been in the business for longer than I have (and that's saying something!)
- Mercury has billions in assets and are not going to go under and leave contract holders without coverage
- Mercury's prices are reasonable
- Mercury's additional benefits include everything I'm looking for: 24-hour Roadside Assistance, Rental Car Coverage, Tire Protection, Trip Interruption
- Mercury offers a wide variety of terms and levels of coverage
See 10 Reasons To Choose Mercury Insurance Group
But don't just take my word for it; as always, I encourage you to do your research. We have plenty of information on this site that I believe you will find helpful in your search for a good extended car warranty, and I encourage you to also call us if you have any questions throughout your search.
For additional information on determining your need for extended warranty protection please review the following pages:
- Extended Auto warranty
- Should I Buy an Extended Car warranty?
- Extended Auto Warranty Advice
- Auto Repair Warranty
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