by Mike Jones, President and CEO
Can you believe it? 2020 is almost over (finally!)! As this year winds down, I’m sure you have a lot of things to take care of – the holidays, end of the year bills, etc. But have you thought about what the New Year means for your car? Or the costs associated with it? If you do not yet have an extended car warranty or vehicle protection plan, the end of the year is the best time to look into it! Especially if your original manufacturer’s warranty has expired or your car is 3 or more years old. Why? Well, there are a lot of reasons.
What is an extended vehicle warranty?
Before we get into why an extended vehicle warranty is the gift you should be treating yourself with this holiday season, let’s make sure you know what extended vehicle protection is all about. There are two main types of extended vehicle protection – a vehicle protection plan and an extended vehicle warranty. An extended vehicle warranty is a warranty sold by the vehicle manufacturer or an authorized dealership. A true extended car warranty can only be sold by the manufacturer. All other types of extended protection are most likely a vehicle protection plan and are sold by dealerships or by independent providers. All types of extended protection usually cover a portion of the costs for certain repairs once the original manufacturer’s warranty has expired. One key difference between an extended car warranty and many vehicle protection plans is that the vehicle protection plans may include extra features and benefits like roadside assistance, rental car reimbursement, first year maintenance, tire protection and more.
Why should you get extended protection before the New Year?
RepairPal says that consumers are usually overcharged for repairs in three main ways: by marking up part prices Now, here are some reasons why you should consider getting extended vehicle protection before the end of the year. On January 1st, all vehicles will automatically become another model year older. The pricing for extended vehicle warranties and vehicle protection plans are based on a combination of several factors – including the age of the vehicle and its mileage. With each additional model year, the price goes up while eligibility and coverage go down. For example, there is a vehicle protection plan offered by autopom! that is available to most vehicles that are 14 model years or newer. This means that through December 31, 2020, autopom! can offer coverage for vehicles that are model year 2006 or newer. Then, on January 1st, 2021, the coverage for 2006 model years will no longer be available as only vehicles that are 2007 or newer can be covered by that plan.
Another consideration is the coverage level available. For example, on a 2013 (7 model years old) Chevrolet Camaro LS, with 70,000 miles on the odometer, autopom! can currently offer the highest, most comprehensive level of coverage called “Exclusionary”. However, on January 1st, 2021, that same 2013 model with the same 70,000 miles becomes 8 model years old and is now no longer eligible for the top level of coverage. The next best option would then be a type of plan called “Used Stated”.
The final factor to consider is that even if the same plan is available on January 1st, you can count on it costing more since the coverage is for a vehicle that is now one year older. Because administrators see your vehicle as more of a risk, you have to pay more for coverage.
Give the gift of automotive peace of mind with autopom!
Are you ready to learn more about an extended vehicle protection plan? Call, email, or text us today! One of autopom!’s friendly agents is waiting to speak with you and answer your questions. If you need assistance on how to proceed or wonder what the best plan for you is, let our agents interview you to learn more about your unique situation and needs. We will provide multiple quotes from various administrators/providers that we represent to give you options. We recommend learning as much as you can about your choices and talking to a few companies. Our agents are ready to help you find the plan best suited for your vehicle and your budget. Our mission is to help consumers make the right buying decision to protect their vehicle and enjoy automotive peace-of-mind – autopom!