Extended car warranties are at their core insurance policies for the health of your car. If you are thinking of purchasing an extended car warranty, you should, of course, do your research on them. Certainly, for some car owners, it makes sense to know that they have a certain amount of protection beyond the manufacturer’s warranty period. Before you make the decision to buy an extended warranty keep a few points in mind: First of all, if you aren’t really interested in purchasing an extended warranty, there is nothing that says you must. Most new car factory warranties cover at least 3 years and/or 36,000 miles. If you are considering a warranty extension, first know exactly what the manufacturer’s warranty does (and probably more important what it does not) cover. One possible advantage to extending the manufacturer’s warranty is that you know that it will be good anywhere in the country that the car sold. After market warranties may require you go to a specific dealer or have limited geographic coverage. So, if you’re looking at an aftermarket extended warranty be sure to know this. Make sure that the company that you may be considering for the aftermarket warranty is a solid viable company that has been around for a while and has a solid track record of payment and customer service. Be sure read the terms of any warranty very carefully. Some warranties have up front deductibles that you must pay first before any of the coverage kicks in. Know what it covers and look to see if the terms include a free loaner car or a per diem in the event your car may be down for a while. Finance managers will also push for you to purchase other such add on’s as gap insurance or credit life insurance. Gap insurance essentially pays for your car if it is lost or stolen and you owe more than the car is worth. Credit life pays the loan off in the event of your death. Again, if these are coverages that you want, I would say check with your personal insurance agent first and crunch the numbers. You may already have the coverage or at the very least you’ll get a better price. Remember the F&I person is there to sell and sell they will (including extended car warranties). As with the rest of the entire process do your homework and know the numbers as they pertain to you. This will allow you to stay focused and unemotional and make good decisions. See Also Extended Auto Warranties Explained
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