How to get the best deal on an auto warranty?

We all know about auto warranties. However many of us are confused when we have to actually buy an auto warranty. When a new car is bought from the dealer the warranty comes along with the car price. So, we should carefully check out the warranty terms and conditions before we sign on the papers. Warranties on roadside services such as sudden breakdown or locked keys are also offered free by some of the dealers offering warranties on new cars. When getting the warranty there are certain questions that you need to ask the dealer. The first question that should be asked is how long would the warranty last. You should check out with the dealer on the mileage limit of the warranty. It is important to check out what is covered and what is not? The extent to which repairs are covered in the warranty should be clarified with the dealer when buying a new auto warranty. Some auto warranties cover wear and tear and some do not. Hence it is important to check out with the dealer that your warranty covers mechanical failures and well as wear and tear. Many of us may not be aware but an auto warranty has some deductible that must be paid by the customer for any repairs that are covered by the warranty. The deductibles can range from $50 and go upto $200. You should know whether the deductible is charged per repair or is it per visit to the repair shop. If it is charged per repair then you may have to shell out a lot of money when you visit the mechanic shop.

It is always better to get a manufacturer based auto warranty. If the auto warranty is from a dealer it is limited to the dealership. With a manufacturer based warranty you can get your vehicle repaired at any of the manufacturer dealership across the country. An after market auto warranty will help you to get the vehicle repaired at a mechanic shop of your choice but the approval may be difficult to get. All these factors sometimes make it difficult to choose an auto warranty. It makes sound sense to check out the company backing the warranty contract. Auto warranties are done by many companies, but you should always check out the S&P ranking of the company before signing the warranty contract. Some auto warranties charge a cancellation fee and some cannot be cancelled. If you are not satisfied with the service offered you will always want to cancel the warranty. Hence it is important for you to change the cancellation clause.

When you are signing the warranty contract always beware of being drawn into something that does not suit your requirements. The sales person at the dealer may try to push an extended warranty which may cost you hundreds of dollars. The markups on extended auto warranties are huge and is money making machine for the dealer. Check out the pros and cons of the auto warranty before you sign. Spending some extra time on the contract will definitely help you with your repair expenses at a later date.

Article Source: http://www.orbitaloc.com/

JD Theis is the author of this article on Auto Warranty. Visit www.autowarranties.com for more information.

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