When you buy a new car, it will come with all the necessary warranties and guarantees that will ensure repair or replacement of any defective parts. All you need to do is to contact the seller or the dealer about the problem that you are facing and the necessary processes will be conducted and in order to make your car 100% fit again!
But what happens when the original warranty is no longer valid? This can happen when your car has become old and has ‘outlived’ the manufacturer’s warranties. This is exactly the time when an extended auto warranty will help cover all the repair costs and problems.
Take a look at your repair history
It would be easy for you to choose the right kind of extended auto warranty plan for yourself if you are familiar with the repair history of your vehicle. This repair history and research should encompass:
• Looking at the kinds of problems that your vehicle has developed
• The systems that have been affected by inherent defects or problems
• The cost implications of the same and
• The availability of licensed mechanics and repair facilities for your vehicle.
Once you have a good grasp of the repair history of your vehicle, you can easily invest in the right kind of extended auto warranty plan.
Go in for component or comprehensive coverage
Broadly speaking, you can go in for a comprehensive coverage as far as an extended auto warranty goes or a specific component coverage plan. If your car has developed all kinds of problems in the past, then you may be better served with a comprehensive coverage plan.
On the other hand, if your car has shown problems with specific systems such as suspension, brakes, electrical systems and so on, then you may be better served with a specific component coverage plan which encompasses these problem areas.
How do you assess and deal with risks?
It is indeed interesting to note that a lot of automobile experts will also ask you to look at your risk taking behavior. You can easily deal with the uncertainty of repair costs and not invest in an extended auto warranty plan. However, in most cases this proves to be a ‘less than wise’ choice because you may need to deal with very high repair costs at some point of time or the other.
Having an extended auto warranty plan in your wallet is equivalent to having a healthy insurance plan. You may never need to really use it, but it is good to have its ‘safety net’ when you are enjoying the ownership and use of your favorite car.
Undertaking major or even extensive repairs for your car may not be a frequent undertaking. But when and if it happens, it can prove to be quite a huge burden on your financial condition. At a particular time, the investment in an extended auto warranty may look really good! Therefore, take the time right now, when your car is brand new, to research and invest in the right product when it comes to an extended auto warranty plan.