Do I Need an Extended Automobile Warranty Plan?
Reader’s Question:
Should I spend money on an automobile extended warranty service? What if I have auto insurance coverage already?
Amelia
Los Angeles, CA
Anyone who has invested a lot of money on a new automobile should definitely think seriously about an extended warranty plan. Listed below are some benefits of having an automobile extended warranty:
1. Provides Long-Term Savings - The cost of maintenance on any vehicle rises every year. An extended auto warranty plan will save you a lot of money on repairs and maintenance costs during the lifetime of your vehicle. Typical factory warranties only lasts about a year or two, but an extended warranty policy can give you prolonged coverage.
2. Your Automobile is Covered – An extended automobile warranty plan will cover wear and tear and mechanical breakdown. This will include repair and replacement of damaged parts. Coverage will also extend to high-end devices on your automobile such as Bluetooth devices, DVD players, State-of-the-art stereo systems, etc.
3. Transferrable - The great thing about extended warranty plans is that they are transferrable to the new owners should you decide to sell your vehicle. This is a good selling point and might actually help you sell your vehicle faster, should you decide to do so in the future.
4. Convenient Extra Coverage - Extended warranty plans can pay for car rental costs, towing, and travel reimbursement. So even if your automobile is in for repairs, you still have a way to go around.
5. Cheaper Deductibles - You will find that extended warranty services have cheaper deductibles per repair/replacement than auto insurance. For an additional fee, some plans can even offer $0 deductible coverage on the policy.
Third party extended warranties are very popular and can come in very handy during the lifetime of your vehicle. However, like everything else you sign-up for, always make sure you read and understand the fine print.
