Auto Warranty

In you are trying to decide whether or not to buy a service contract on your automobile, you must first verify a few things.

First of all, check to see whether the service contract duplicates the warranty coverage. You should compare the two prior to purchase. Verify who will pay for any repairs. It may be the dealer or the warranty company. It is important to research the dealership's reputation. Consult the Better Business Bureau or the state consumer protection office or similar authority for this information. You may want to research how long the particular dealer has been in business and if they have enough financial resources to fulfill their obligations.

The service contract may be written by an insurance company. You must verify the cost of the auto service contract when you are examining the auto warranty. The total cost of an auto warranty contract can be anywhere in the range of $100 to $1000. In addition to the initial cost, you may have to bear a deductible each time your car is in for repairs. You will have to pay a particular amount per visit, regardless of the length or cost of the repair. If you transfer the ownership of your car or terminate the contract, then you are required to pay a cancellation fee.

Some auto warranties cover all repair costs. Remember, however, that parts like breaks and clutches are generally not a part of most auto warranty plans. It is possible that when a covered part is damaged by a part which is not part of the warranty, in this particular situation you may not reap the benefits of the warranty.