Topics:Repair and Maintenance Budget Safety Voided Warranty Mileage Car Value Car Trouble Car Resale Money Saver Buying Tips Winter
By Riley Clark
March 15th, 2021
By Riley Clark
March 15th, 2021
A factory warranty is coverage offered by the original manufacturer for a specified period of time or until a certain mileage threshold is reached. Through a factory warranty, the manufacturer agrees to pay for certain repairs. Factory warranties are generally only included with new car purchases. Across many well down car manufacturers, the specific coverage is similar because they are all competing for the same customers and those customers expect coverage on their new car. Jennifer Willy, a travel expert at Etia explained the different types of warranties, saying, “the coverage offered can be both inclusionary and exclusionary. If a factory warranty is inclusionary, the contract will explicitly list every part that is included in the coverage and if it is exclusionary, the contract lists the excluded parts instead. The latter coverage typically includes more items, since there are thousands of parts that make up a car.” Key Takeaways: Factory Car Warranty Questions Answered Can my used car still be under warranty? What does a factory warranty typically cover? What happens if my factory warranty is expired? What is the difference between a factory warranty and an extended warranty? Is an extended warranty for me? Can my used car still be under warranty? If the original factory warranty is still active then it will generally transfer to the next car owner. This means that when buying a used car that still has the manufacturer warranty it will be transferred as if the purchases were the original owner. However, this is not always the case, so be cautious and make sure to read the fine print. In order to be sure, call the dealership of the make of the car and provide the VIN to find out exactly how much warranty is left on the car? How to check if my car is still under warranty? What does a factory warranty typically cover? Typically, there are two major types of factory warranties; a basic limited warranty and a powertrain warranty. Oscar Verduga who works at a German car manufacturing dealership added that, “the warranty is activated when the vehicle is purchased brand new and changed to the owner’s name. There are typically different levels of warranty that have different lengths of time and mileage and cover different items. Usually the shorter warranty is the most complete. It covers bumper to bumper, except wear and tear items such as brakes and tires." “Always keep records of the terms of your warranty so that, if you’re unsure down the road of what’s covered and for how long, you can check back. When in doubt, you can also give your manufacturer a call with your vehicle identification number to find out exactly when your was put into service and determine if it’s still covered that way. This trick works for used cars as well.” — Richard Reina, CARiD Bumper to bumper warranty A bumper to bumper warranty is typically the most comprehensive type of factory warranty available. Be aware, however, that a bumper to bumper warranty doesn’t actually cover every part of your car. Parts that are not covered by this warranty are typically parts that will naturally wear over time, such as brake pads, wipers, and light bulbs. A factory warranty that is bumper to bumper is really more of just something that will cover any of the manufacturer’s parts that are defective. For example, the manufacturer will replace the engine of the car if it stops working because it was defective, not if something the owner of the vehicle did caused it to stop working. Powertrain warranty A powertrain warranty covers less items than the bumper to bumper warranty. The powertrain warranty typically covers more of the larger portions of the vehicle that will keep the car running. It typically includes; the engine, the transmission, axle shafts, driver shafts, and more major components of the vehicle. Basically, the powertrain warranty covers anything that provides power to your wheels. Again, the powertrain warranty does not cover parts that are damaged through normal wear and tear of your vehicle, but instead, covers faulty manufacturer parts over until a specified period of time after purchasing your vehicle or a certain number of miles have been put on the car. What happens if my factory warranty is expired? If you still want similar coverage for your vehicle you can look into purchasing an extended warranty. There are many reputable third party car warranty companies that offer varying levels of protection, depending on your needs. A Complete Guide to Car Warranties E-Book These plans typically come at a monthly cost for the consumer. When a covered repair is necessary, the consumer lets the car warranty company know and then it works out the payment between the company and the repair shop. What is the difference between a factory warranty and an extended warranty? A factory warranty is typically included in the cost of the car if it is available and usually only covers parts of the car that make the car run and that are specific to the car manufacturer. However, the extended warranty, also referred to as an auto service contract, comes at an additional cost to the consumer and can sometimes cover more or less than what would have been covered on the factory warranty depending on the chosen plan. Is an extended car warranty for me? Lauren Fix, CEO of the Car Coach says, “A warranty offers peace of mind. When making a five-figure purchase, the thought of paying out for major repairs in the first couple of years is nerve-wracking. Cars typically come with a warranty, although extended warranties may be offered through a third-party company. Deciding if you want or need an extended car warranty is a personal decision. You need to decide if you would rather pay a monthly sum and have the peace of mind that any costly repairs that occur will be covered or you will have to budget for those repairs on your own. An extended auto warranty also often offers roadside assistance. 5 Questions to Ask Before Purchasing an Extended Car Warranty
Guest Post by Mike Jones Every person has a unique fingerprint that can give insight into their name and date of birth, as well as their medical, employment and criminal history. There’s a story to be told behind every fingerprint. A vehicle’s VIN is no different. A VIN, or vehicle identification number, is a unique, 17-character code assigned to a car. No two cars have the same VIN. After all, no two cars have the same story. A VIN gives valuable insight into a car’s manufacturing history, its features, its insurance, and its warranty. From repairs to recalls, there’s a lot your VIN can tell you. What does the VIN mean? The VIN may look like a random selection of numbers and letters, but the placement of those characters will tell you a lot about the manufacturer, the engine, and even the fuel type of your vehicle. 1st Character: Where the vehicle was built. J means Japan. L means China. 1 means the United States. 2nd–3rd Characters: The vehicle’s manufacturer. For example, Toyota is JT. 4th–8th Characters: The vehicle’s brand, engine size, and type. 9th Character: The vehicle’s security code. This number is the result of a complex algorithm that is used by adding/subtracting the other digits. If the answer is this 9th character, your VIN is accurate. If it isn’t, it could have been forged. 10th Character: The vehicle’s model year. A letter is recycled every 30 years, so A is 2010, B is 2011, C is 2012, and so on. 11th Character: Which plant assembled the vehicle. 12th–17th Characters: The vehicle’s serial number. Where is the VIN located? You can find your VIN on the dashboard of your car. Stand outside, in front of the driver’s seat, and look closely where the dashboard meets the windshield. This is the most common place you’ll find the VIN. If it’s not there, it could be on the driver’s side door frame You can also find your VIN on your vehicle’s paperwork, like its insurance card or title. Why is the VIN important? A VIN can tell you so much more than where and when your car was made. With a VIN, you have access to the entire life story of your vehicle. You can see its maintenance record, accident history, branded title (total loss, salvage, lemon, junk, potential odometer rollback, etc) or clean title. You can also see whether your vehicle has ever been subject to recalls. All of this information is especially useful if you plan to buy a used car. How do you know if the car is safe to drive? How do you know whether it’s been properly maintained? How do you know it isn’t stolen and being sold for a profit? Run a check on the VIN. There are plenty of websites you can use, including Carfax, the National Insurance Crime Bureau, and VehicleHistory. Some other vehicle information you’ll learn from your VIN: Line type Body style Whether it’s 2WD or 4WD Weight class The mileage on the odometer (and whether it’s been flipped) Past owners Any liens Airbag deployment Whether parts are original Your VIN and Car Warranty If you’re in the market to buy a car, you can discover whether the car is still under its original manufacturer’s warranty by searching the VIN. If the car isn’t under warranty and you’re considering an extended vehicle warranty, use the VIN to take a look at the vehicle’s maintenance history. If the vehicle has a documented history of maintenance, a vehicle protection plan may be worth the investment. A vehicle protection plan or mechanical breakdown insurance (in California) will help cover the costs of any future repairs and give you automotive peace of mind for the future. However, a vehicle protection plan does not cover regular maintenance and wear items (think oil changes, alignments, belt replacements, brake pads and rotors, shocks, batteries, etc) or pre-existing conditions. If the used car you’re looking at has been involved in major accidents, it’s best to avoid the vehicle altogether and find a car that you can rely on. Providers of vehicle protection plans and insurance companies will ask for your VIN for this reason and will adjust rates accordingly depending on your vehicle’s reliability and history. A branded title for example will disqualify the vehicle for a vehicle protection plan or mechanical breakdown insurance. Whether you’re a proud new car owner or are still searching for your next vehicle, take some time to look up the VIN. You may be amazed by the story it tells. Mike Jones is the president and CEO of autopom!, a BBB Accredited A+ rated provider of vehicle protection plans for both new and used cars. Click here to learn more about autopom!
Here at Best Company, we are determined to help consumers feel confident in their purchasing decision by bringing unbiased reviews and summaries of companies. In order to provide an even more in depth and complete review of available car warranty companies, we are offering a compiled list of the top five rated companies on our site: Omega Autocare autopom! CARCHEX CarShield Liberty Bell Auto Protect We delve into each company's prices and plans available, as well as a comprehensive breakdown of hundreds of verified reviews for each company, making the reviews easily digestible so you can know what consumers really think of the company and what their experiences with the company were like. Before looking into specific companies, make sure that you know exactly what a car warranty is, how it can help you, and if you need it. 5. Liberty Bell Auto Protect Plans offered Liberty Bell Auto Protects offers three car warranty plans. It has plans available for cars dating to the year 2000 and its mileage limit is 150,000. Platinum — Platinum is the most affordable plan that Liberty Bell Auto Protect offers. The platinum plan provides the most limited coverage compared to the other plans. This plan covers the engine, transmission, cooling system, electrical system, drive axle, brake system, 4X4 AWD, 24-7 road side assistance, rental car reimbursement, out of gas, dead battery, trip interruption, and towing. Platinum Plus — Platinum plus covers the engine, transmission, cooling system, electrical system, drive axle, brake system, 4X4 AWD, 24-7 road side assistance, rental car reimbursement, out of gas, dead battery, trip interruption, towing, and the steering system. Platinum Prime — Platinum prime covers the engine, transmission, cooling system, electrical system, drive axle, brake system, 4X4 AWD, 24-7 road side assistance, rental car reimbursement, out of gas, dead battery, trip interruption, towing, the steering system, air conditioning, fuel system, abs-brakes, suspension, turbo/super charger, seals, gaskets, and GPS navigation. General pricing We did not receive a response from Liberty Bell Auto Protect on its pricing, nor was any pricing information available on its website. However, many of the customer reviews on our site said Liberty Bell Auto Protect offered affordable pricing. Get in touch with Liberty Bell Auto Protect for more pricing information Review information from Best Company Our takeaway Overall, the experiences that customer have had with Liberty Bell Auto Protect varied. The percentage of customers reporting a negative car repair experience where their claim was not accepted or their wait time was longer than expected was about the same as the number of customers who had a positive car repair experience. Liberty Bell Auto Protect also offers some of the lowest prices for their available plans and has high-rated customer service. Our advice, make sure you know exactly what you want covered going into the purchasing process so you're not surprised if your maintenance claim on your car gets rejected when it comes time to use your car warranty. 4. CarShield Plans offered New car diamond — This plan is similar to the factory warranty. The coverage includes everything from engine and transmission failure to service for starter and fuel pump breakdowns. Comprehensive — This plan is best suited for a vehicle with higher miles. The coverage includes your vehicle's engine, transmission, AC, electrical system, starter, water pump, fuel pump, and more. Powertrain — This plan is CarShield's most affordable policy. The coverage includes the most important parts of a vehicle, including all lubricated parts on your engine, transmission, and water pump. Specialty coverage — This plan is designed to cover most electrical and computer related repair costs problems, including Engine Control Module, Starter, Alternator, Navigation/GPS, Electrical System and more. Hightech — This vehicle service contract is great for covering most electrical and computer related repair costs problems including Engine Control Module, Starter, Alternator, Navigation/GPS, Electrical System and more. Specialty — CarShield also offers a variety of different types of coverage that cover motorcycles and other special circumstances. General pricing We did not receive a response from CarShield on its pricing, nor was any pricing information available on its website. However, we are aware that its most affordable coverage plan is its Powertrain policy. Review information from Best Company Our takeaway Here, at Best Company, we would suggest exercising caution when considering purchasing a car warranty from CarShield. A much larger percentage of the reviews received at Best Company were negative comments compared to other car warranty companies on our site. Consumers reported confusion about what was actually covered within their contract and long wait times when it came to filing a claim. Some consumers shared experiences of their repair not being covered by CarShield in the end. Others stated that customer service was easy to work with during the process of actually setting up their plan with CarShield. We advise those looking into purchasing a car warranty with CarShield to ensure that they have a detailed written contract to go along with their purchase so they know everything that they are signing up for. 3. CARCHEX Plans Offered At CARCHEX, every plan includes roadside assistance, rental car reimbursement, and towing benefits. Titanium Coverage — This is the highest level of coverage offered that is often referred to as "bumper to bumper" coverage. This plan covers many parts of your vehicle but does have some limitations. Examples of what is not covered are; car paint, carpeting, upholstery, toro, wheels, seat belts, seat heaters, headlights, taillights, and more. This plan covers new and pre-owned vehicles. Platinum Coverage — This is the highest level of stated-component coverage that CARCHEX offers. This plan covers new and pre-owned vehicles. It does not cover brake pads, rotors, batteries, air filters, coolants, wheels, etc. The standard deductible on this plan is $100 per claim. Gold Coverage — This includes components from all the major systems of the vehicle and is compatible for vehicles that have 90,000 miles or more. The standard deductible on this plan is $100 per claim. This plan covers new and pre-owned vehicles. Silver Coverage — This plan covers the essentials of the major systems in the vehicle and is available for vehicles that have higher mileage. The exact mileage was not available on CARCHEX's website. This plan does not cover brake pads, batteries, air filers, oil filters, wheels, rust, corrosion, and more. This plan covers new and pre-owned vehicles. Bronze Coverage — This plan covers the major systems in your car and covers many of the most expensive repairs that would be needed for your engine and transmission. This plan covers pre-owned vehicles only. General Pricing CARCHEX is unique in the sense that they are more of a marketplace where other coverage providers compete for your business. This method can sometimes help with finding lower price levels for the coverage that you are seeking. Get in touch with CARCHEX for more pricing information Review Information from Best Company Our Takeaway In their reviews, many people cited that their customer service is very knowledgeable and easy to work with. The customers shared that they were able to find the right amount of coverage for their needs and that they were helped in understanding their policies. Others mentioned a fair pricing model and positive experiences when they had to file a claim. However, others mentioned that they had to endure long waits to get their claims approved. Overall, it seems that CARCHEX has many positive qualities but we advise you to ensure you know exactly what is included in your contract so you know what will be covered and what will not. 2. autopom! Plans Offered Exclusionary — This plan extends coverage to virtually all mechanical and electrical components in the vehicle unless a part is specifically listed as not covered. An exclusionary-type policy is the most comprehensive vehicle protection plan you can purchase, and is most comparable to the manufacturer’s original warranty. High Level Stated Component — This plan provides coverage for an extensive list of named components within the following major systems: Engine, Transmission, Transfer Case, Drive Axle, Steering, Electrical, Air Conditioning, Braking, Cooling, Fuel System and Seals and Gaskets. The High Level Stated Component plan is a cost-effective alternative to an exclusionary plan. Mid Level Stated Component — This plan includes the coverage provided in its Powertrain Plus plans, as well as named additional components within the Steering, Suspension, Fuel Delivery, Cooling and Braking systems. Mid Level Stated Component plan is designed for older, higher mileage vehicles that might not be eligible for the High Level or Exclusionary coverage plans. Powertrain Stated Component — This plan provides named-component coverage for the essential, major systems including: Engine, Transmission, Transfer Case, Drive Axle, and Differential Assembly. It also has plan options that cover additional components for the Electrical, Air Conditioning and Fuel Systems. The Powertrain Stated Component plan is designed for older, higher mileage vehicles that might not be eligible for the High Level or Exclusionary coverage plans. General Pricing Pricing varies widely by year/make/model/mileage and state of residence. Best way to illustrate pricing is to give a few examples of recent actual sales from a couple of popular states where pricing is fixed (no discounting allowed). Exclusionary Coverage 2013 Subaru Outback with 25,400 miles: $3,346.96, $0 deductible, 5 yrs / 50,000 miles 2016 GMC Sierra with 36800 miles: $1,824, $100 deductible, 4 yrs / 40,000 miles 2009 Cadillac DTS with 41,000 miles: $4,022.00, $100 deductible 5 yrs / 34,000 miles High Level Stated Component Coverage 2017 Dodge Challenger with 29,300 miles: $2,001.00, $100 deductible, 4 yrs / 40,000 miles 2008 Hyundai Santa Fe with 66,000 miles: $2958.00, $100 deductible, 4 yrs / 34,000 miles 2005 Chevrolet Avalanche with 26,400 miles: 2,990.00, $50 deductible, 4 yrs / 60,000 miles Powertrain Stated Component Coverage 2010 Mazda CX-7 with 138,000 miles: $2,675.00, $100 deductible, 4 yrs / 48,000 miles 2008 BMW 550i, with 139,600 miles: $4,170.00, $100 deductible, 4 yrs / 48,000 miles Get in touch with autopom! for more pricing information Review Information from Best Company Our Takeaway The reviews left by verified autopom! customers are overwhelmingly positive. The largest majority of the reviews mentioned how helpful and easy to work with their customer service was. Many cited their competitive pricing and that they were satisfied with the pricing deal that they were getting. A much larger percentage of autopom! customers shared positive review experiences than negative. Many shared experiences of quick responses by autopom! and ease of getting the claim processed. Overall, we would recommend autopom! 1. Omega Auto Care Plans Offered When you have a contract with Omega Auto Care, you will be protected by 24-hour Roadside Assistance for the following: Towing Jump starts Flat tire changes Vehicle fluid delivery Concierge services Lockout services Tire Hazard protection: Tire repair up to $20, or $100 towards replacement of an irreparable qualified tire. Rental Benefits All policies provide rental assistance benefits, which vary based on level of coverage. Trip Interruption It will reimburse up to $250 for food and lodging if stranded more than 100 miles from home. Its coverage plans offer a variety of benefits for vehicle owners so they don’t have to worry when something goes wrong. Plan prices vary based on the year, make, and model of the vehicle. About Omega Auto Care Coverage Plans Omega Auto Care wants its customers to be covered no matter what kind of vehicle they have. Because of that, it offers five coverage options for our customers. Coverage plans start as low as $59.99. The New Exclusionary — This option is for vehicles that are current model year + 7 model years with less than 100,000 odometer miles at point of purchase. This option covers repairs on almost all component systems. The Used Stated Coverage — This option is for vehicles that are current model + 10 model years with less than 150,000 odometer miles. This plan covers most of the component systems. The Powertrain Protection — This option is available at 3 levels and is for vehicles that are current models + 15 model years and less than 250,000 odometer miles. This option covers systems such as engine, transmission, transfer case, and drive axles. General Pricing Coverage plans start as low as $59.99. Breakdown of Consumer Reviews Our Takeaway Overall, it seems that consumers had a positive experience using Omega Auto Care. More than anything, its consumers reported a positive repair experience where Omega Auto Care’s customer service was quick to respond to their claim and ultimately paid for the repair. Many customers also reported that its customer service was helpful and knowledgeable and that they felt they gave them all the necessary information they needed to understand what was included in their agreement with Omega Auto Care. We would recommend considering Omega Auto Care when considering a car warranty company because of their overwhelmingly positive reviews. Next Steps As with any large purchase, we advise that you ensure that you know exactly what is included and not included in your car warranty contract. Before talking with any of the customer support representatives, have a detailed list of things that you want included in your car warranty plan and also a few things that you feel are not necessary. This will help you get the best car warranty plan for you. Read Reviews from Other Top-Rated Car Warranty Companies
Here at Best Company, we want you to be prepared for all of life's biggest decisions and purchases. For that reason, we have compiled a comprehensive guide to help you decide if a car warranty is right for you. This e-book walks you through what an extended car warranty is, if your car is already covered, what to ask before purchasing, what voids an extended car warranty. It also provides you with useful next steps as well as a list of top-rated car warranty companies. In this e-book, we partner with the following industry experts: Jenni Newman of Cars.com Ethan Lichtenberg of CarInsurance.org Tony Arevalo of Carsurance Jake Lane of NuBrakes Mobile Brake Repair Lauren Fix the Car Coach Laura Gonzalez of Audi Peoria Melanie Musson of AutoinsuranceEZ Jared Weitz of United Capital Source Inc. Other reading options For even more detail than is provided in the e-book, check out the links below for an expanded version of each chapter. What is an extended car warranty? Is my car already under warranty? Is a car warranty right for me? What voids a car warranty? Next Steps Top-Ranking Car Warranty Companies with Verified Customer Reviews What is an extended car warranty? An extended car warranty is a type of insurance policy on your vehicle that is designed to safeguard you against unforeseen and expensive repairs. Basically, you pay a monthly fee to an extended car warranty company, and they agree to pay for certain services that might be necessary for the maintenance on your vehicle. An extended car warranty is sold separately from your vehicle and the various types differ in their scope and coverage. Other names for an extended car warranty are service agreement, service contract, maintenance agreement, or vehicle service contract. Next steps Once you know the kind of warranty you want, compare plans from several companies. Most plans will be similar, but some companies have more variety. For example, some companies offer very basic powertrain warranty plans, while others offer more comprehensive powertrain warranty plans. The more comprehensive plans will cover more parts and will usually be more expensive. Evaluating plans from multiple companies can help you find the best plan for what you want. As you’re researching companies, consider the benefits included with many extended service contracts. For example, 24/7 roadside assistance has become standard in the industry. Many companies also offer rental car and trip interruption reimbursement. The reimbursement is only available if the car needs covered repairs. In addition to comparing plans and benefits, read customer reviews to be sure that you’re purchasing an extended warranty from a reliable and trusted provider. Reviews will give you insight to the level of customer service and quality of the extended warranty. About the experts Jake Lane lives in Austin, TX and is a local service expert and Director of Growth for NuBrakes, an on-demand mobile brake repair service. For over six years, he's tackled growth and marketing for local on-demand services, and now primarily spends time educating vehicle owners on cost-effective auto repairs and preventive maintenance. Jared Weitz is the CEO and founder of United Capital Source, one of the fastest-growing business financing brokerages in the nation. Through his years as a business owner, Jared gained a great deal of knowledge that he is committed to sharing with young entrepreneurs and business owners. Jared has since been featured in an extensive list of publications, including Forbes and Inc, providing financial and business advice. Jared now lives on Long Island with his wife Allison and their 2-year-old son Maxwell. Jenni Newman Jenni leads the Cars.com editorial team as the company’s first female editor-in-chief. She is also a certified child passenger safety technician – she focuses on delivering content to help parents and caretakers determine which vehicles will best fit cars seats, and she will talk your ear off about family cars and car seat safety. When she’s not working with car seats and managing editorial deadlines, she can be found navigating the streets of Chicago in her Subaru Outback while shuttling her kids to their daily activities Melanie Musson is an insurance expert and writer for AutoInsuranceEZ.com. Her goal is to help others find the best insurance for their situation and not overpay for it. She lives in the beautiful Rocky Mountains with her husband and their four children. Ethan Lichtenberg is a writer for CarInsurance.org who specializes in marketing and travel writing. Ethan hopes to leave a positive impact in a world that sees too much negativity. He lives on the beaches of Tarpon Springs, Florida and reads Paulo Coelho every chance he can.
Guest Post by Lilly Miller Buying a company vehicle is a long-term investment, one that might not always make financial sense if you can relocate those resources towards more lucrative opportunities. Nevertheless, when business is booming a company vehicle may be necessary to maintain operations and day-to-day efficiency. In fact, some companies absolutely need their own vehicles if their employees are operating in the field. If the time has come to purchase your own company vehicle, then you need to plan your purchase carefully and assess all of the variables to make the most cost-effective decisions. With that in mind, here are the key things to consider when planning to buy your first company car: 1. Choose funding The first key consideration is, of course, how you’re going to afford your vehicle without putting a dent in your budget. A car is no small investment, so it’s important that you decide on the best funding option as well as the best way to create a positive return on investment in a short timeframe. If you’re going to buy a vehicle, consider applying for a small business loan as one of the quickest ways to get the funds necessary to buy a car. On the other hand, if you already have an outstanding loan or if you fear that you won’t be able to get favorable loan terms, you could opt to lease the vehicle instead. This will avoid extraneous upfront costs, and you will be able to write the investment off as a deductible business expense. Keep in mind, though, you might not be able to find a specific vehicle you want on lease terms, as leases are typically offered on a limited number of makes and models. 2. Devote time to research and testing Again, buying a company vehicle requires a substantial financial investment, so you shouldn’t rush the process even if you need to buy a car quickly. It’s imperative that you devote enough time to proper research and testing by doing the following: Ensure the vehicle fits your needs perfectly. Research various makes and models to compare features and prices and find the best deals on the market to efficiently narrow your search. Make a testing schedule and proceed to test-drive every vehicle to see how it fares, how it feels, and if the choice is right for your needs. If you’re unsure, ask a car-savvy friend or business partner to come to the testing with you and help you make the right decision. 3. Get an adequate warranty Of course, you can’t just hope that your car won’t break down in the middle of nowhere mere months after rolling it out of the showroom. No, you want a car that will run smoothly, and you want to know that if problems arise, you can ask for a replacement vehicle or a free repair. Another crucial step would be getting adequate manufacturer warranty. Go over the warranty thoroughly and see if it ticks all of the boxes that are relevant to you and your business. Consider purchasing an extended warranty if you think the perks are worth the added investment in the long run. Along with a manufacturer’s warranty, be sure to get an adjustment warranty from your car dealer as well, in order to take care of small problems and repairs quickly, without breaking the bank. 4. Find the right insurance One of the most important considerations is the coverage. When it comes to getting a company vehicle, insurance is non-negotiable, as you need to make sure that you are covered against every eventuality, from roadside accidents to environmental damage, theft, and everything in between. Given the fact that there are many variables that go into a good insurance policy, it’s important to compare prices from various insurers. Luckily, insurers are all about personalization nowadays, and forward-looking ones are even offering interview based quotes that are tailored to the exact needs of the business, so you can save money on the things you don’t need while ticking all the boxes that are important to you. When researching insurance options, get in touch with the flexible insurers who can adapt to your company’s requirements. 5. Research economic trends and time your purchase Experienced business leaders understand the value and importance of timing their investments, and the same importance can be attributed to vehicle purchase. If you time your purchase right, you can snag a much better deal and thus aquire your car at half the original price, but you need to know what to look for. First, it’s important to monitor economic trends. If the economy is currently going through a bit of a slump, you will most likely find dealerships that are slashing their prices to make a quick profit. Next, you need to sense the demand for certain vehicle brands. Popular brands that are selling like hot cakes will have the same price tag throughout the year, while less popular brands will invariably lower their prices to cover their losses. 6. Maximize your investment through marketing On a final note, keep in mind that this new vehicle can serve yet another purpose aside from getting you from point A to point B. You can also use it to boost your marketing efforts and complement your online marketing tactics with some good old offline promotion. By branding your vehicle just right, you can use it as a promotional tool and a rolling advertisement that will get people interested and perhaps even inspire them to reach out. Print your website address or phone number along with your company’s name and visuals. Almost every business needs a company vehicle nowadays, but that doesn’t mean that you should spring for the very first deal that pops up. Instead, use these tips to create a cost-effective strategy, find the perfect vehicle, and most importantly, maximize your investment in the years to come. Lilly Miller is an author at Smooth Decorator.
Car salespeople and car warranty companies always talk about the value brought by purchasing an extended car warranty. Are they trying to make a sale or are car warranties really worth it?Before you purchase a car warranty for your new car or new-to-you car, you should ask yourself the following questions: What is your car’s service and repair history? What is the year, make, model, and mileage of your car? Do you have savings? How frequently do you roadtrip? What kind of coverage do you actually need? If you are unsure of what a car warranty or extended warranty is in general, check out our complete guide to car warranties for a simple run-down. What is your car’s service and repair history? If you bought a new car, then your car should have a clean slate and be reliable.If you bought a used car, it’s a good idea to review the CarFax to learn about any difficulties experienced by previous owners. In addition to accidents and damage reports, look for notes about systems malfunctioning or not working properly. These notes can indicate the potential for future problems.If you’re considering purchasing a car warranty, be sure to understand if any modifications have been made and if the car has been well-maintained. If there have been modifications or if the car has not had regular oil changes, it may not qualify for an extended warranty.It’s also a good idea to have a trusted mechanic take a look at your car. Your mechanic can tell you if the car is in good shape and what repairs to anticipate in the future. Car warranties only provide coverage for some car parts when they fail. If your car is pretty reliable, an extended warranty may not be worth the expense. What’s the year, make, model, and mileage of your car? "If you are shopping for an extended warranty, look into the reliability of the car make and model purchased to know what the likely damage will be and how long into the car life they tend to break," says Jared Weitz, United Capital Source Inc. CEO and Founder. Car warranty companies have certain requirements associated with each of their plans. For example, some car warranty companies do not offer warranties for foreign cars. It’s also fairly common for car warranty companies to offer several vehicle protection plans with different levels of coverage at different price points.Most plans have mileage restrictions. The plans with the most comprehensive coverage often have the lowest maximum mileage covered. The plans with the least coverage are cheaper and have more flexible mileage restrictions.View autopom!’s plans and mileage requirements. How frequently do you roadtrip? Many car warranty companies include additional benefits in their plans, like roadside assistance, trip interruption, and car rental reimbursement.These benefits add value to a car warranty. Roadside assistance is very useful for emergencies like running out of gas, local towing, and jumpstarts.If you live in a rural area or away from family and friends, roadside assistance is valuable because you have someone you can call for help.If you’re on the road a lot and roadtrip through remote areas, trip interruption benefits are great. Trip interruption benefits reimburse hotel and meal expenses while your car is having covered repairs.For people who have long commutes or rely heavily on their car for daily tasks, the rental car benefit is great. You won’t have to bother with public transportation, figure out rides, or change your routine. Do you have savings? It’s good practice to have savings set aside for unexpected expenses. If you don’t have a lot of savings set aside and aren’t actively saving, it’s a good idea to start making that a priority in your budget.The major benefit that a car warranty offers is reducing repair costs and other associated costs for covered parts that stop functioning properly. Be cautious when choosing between savings and an extended warranty. "Extended car warranties are often costlier than the typical repairs themselves tend to cost. Instead of a car warranty, consider dedicating the money that would go to the warranty into an emergency fund for any potential damages that may come up," says Weitz. While car repairs can be quite expensive, but how likely is your car going to need these repairs? Is your money better spent on an extended warranty or put in your savings? What kind of coverage do you actually need? The three main kinds of extended car warranty include the following: Exclusionary Stated-component Powertrain Exclusionary extended warranties are typically for newer cars whose factory warranties have expired. Exclusionary coverage is very similar to factory warranty coverage. It covers everything in the car except those listed in the service agreement. They are also known as bumper-to-bumper warranties. These are ideal for people looking for coverage to replace the factory warranty.Stated-component warranties offer a mid-level of coverage. These service agreements only cover the parts listed in the agreement. These extended service agreements are ideal for car owners looking for comprehensive coverage but not the same kind of coverage as a bumper-to-bumper warranty.Powertrain warranties cover a car’s powertrain. These parts typically include the engine, drivetrain, and transmission. These are the most essential components of a car. "Before making the purchase, look at your standard car insurance to see if it covers any mechanical damages prior to investing in additional warranties," says Weitz. To buy or not to buy "An extended warranty is always a gamble and, in most cases, what you’re actually paying for is peace of mind. A 2013 survey from Consumer Reports showed that 55 percent of extended warranty holders never ended up using the warranty at all. Of the 45 percent that did take advantage of extended warranty coverage, most survey takers still saw a net loss when comparing the cost of repairs versus the cost of the warranty," says Jake McKenzie, Auto Accessories Garage Content Manager. If you found a great car that’s reliable, purchasing an extended service agreement may not be the best investment.If you’re on the road a lot or would benefit from a car warranty’s included features like roadside assistance, car rental reimbursement, or trip interruption, an extended service agreement may also be worthwhile. However, it’s worth comparing pricing of an auto warranty with the pricing of roadside assistance service subscriptions. You may be able to find a better deal.An extended auto warranty may be a worthwhile investment if you’re worried about your car’s reliability.View Best Car Warranty Companies
Guest Post by Mike Jones There's nothing more exciting than visiting a car dealership and seeing your dream car on the lot. However, before you make the vehicle yours, you want to take it for a test drive. You wouldn't buy a house without getting it inspected. And you wouldn't buy a bed without trying it out. You shouldn't buy a car without taking it for a quick drive. When you're making such a large purchase, there's no turning back, so it's important to make the right decision. A vehicle's appearance is important but it takes a backseat when it comes to a vehicle's driving capabilities, its comfort, and its safety. 1. Look for a vehicle's drivability When you're out on the road, pay special attention to the way the vehicle feels. Listen for strange noises. Feel for any vibrations or bumps. Take a look at the buttons and gears. Can you get used to them? Ask yourself a few questions: Does the transmission shift smoothly? How does the vehicle respond to bumpy or unpaved roads? Does the steering respond properly? Does it vibrate? Do you feel the car being pulled to the left or right? How does it accelerate? How do the brakes feel? Do they respond quickly? Chances are, you'll be driving this car for tens of thousands of miles, so make sure it drives how you want it to. Moving from a small car to a large SUV or vice versa brings quite a noticeable difference. Make sure you're comfortable with this change. 2. Consider your comfort Long road trips. Commuting to work during rush hour. Visits to your family. You'll be spending a lot of time in your car. Research estimates that you'll spend just under 300 hours in your vehicle each year. You want to make sure you're comfortable. As you drive, ask yourself the following questions: Is there enough head or leg room? Can seats be adjusted? Is the driver's seat comfortable? How is the quality of the material? Are there controls for warming the seats, cooling the back, etc.? Can the steering wheel be adjusted? If you have a family, is there enough room for passengers? 3. Take safety features for a spin More so than appearance, more so than comfort, and more so than cost, safety should be the most important consideration during your test drive. Today's vehicles feature more safety measures than ever before. Consider the following basic safety features: Do seatbelts work properly? Are the windshield wipers in good condition? Is there a back wiper? Can you easily adjust the mirrors? How is visibility? Do you have large blind spots? Do the dashboard warning lights illuminate properly? Do locks work properly? Do turn signals work? Is there four-wheel drive or all-wheel drive for the snow? Over the years, there have been considerable improvements in the safety features available in vehicles. Therefore, there are also some more advanced safety features you'll want to consider: Is there a backup camera or blind spot detection? Is there crash detection or emergency braking? Does the vehicle come equipped with emergency services, like OnStar? Is there a GPS? Are there childproof locks or Safety Exist Assist? You may end up paying extra for some advanced safety features. Carefully evaluate the safety features you prioritize. If you have children, you may require drastically different safety features than someone who's not a parent. If you drive highways, you may want different safety features than someone who frequently drives backroads. 4. Get a mechanic's advice Sometimes it's best to take a test drive straight to your mechanic, especially if you're buying a used car. Ask the dealership or seller if your mechanic can inspect the car. They may ask to go with you, but them being there during the inspection may give you some added bargaining leverage. Mechanics may be able to spot things that you didn't notice during your test drive. They may also be able to explain any weird noises, check engine lights, or bumps/vibrations you experienced. You should also request a vehicle history report to make sure the car poses no hidden dangers or vulnerabilities. Make sure the vehicle has a clean title, no odometer irregularities, no major accidents, and has received regular maintenance.Before purchasing your vehicle, ask questions. Do research. If you need to, go for a second test drive. Do what you need to do in order to guarantee automotive peace of mind with your new car. Mike Jones is the president and CEO of autopom!, a BBB Accredited A+ rated provider of vehicle protection plans for both new and used cars. Click here to learn more about autopom!
Car trouble is never fun, and car repairs can be quite expensive. If your car is a newer model and has low mileage, it may be worth investing in a car warranty. Car warranties help cover the cost of repairs and replacements of major car parts, like the engine and transmission. Many car warranty companies also offer additional benefits with their warranty plans, like 24/7 roadside assistance. You want to choose a car warranty company that is trustworthy, provides great coverage at good prices, and has the kind of warranty plan you are looking for. Three of the best car warranty companies are autopom!, Endurance, and Delta Auto Protect. Each company offers its own advantages to customers. Car warranty cost The cost of a car warranty varies depending on the kind of service contract purchased. It is also determined by a car’s make, model, mileage, and year. Because the rates depend on the specifics of a car, the best way to learn about cost is by requesting a quote. Car warranty types Car warranties are also called vehicle service contracts or extended vehicle service programs. There are four kinds of car warranties: Manufacturer’s warranty Exclusionary warranty Stated component warranty Powertrain warranty The manufacturer’s warranty is also called the factory warranty. It provides bumper-to-bumper coverage for vehicle repair services. Once the manufacturer’s warranty expires, car owners can purchase an exclusionary warranty which provides similar coverage to the factory warranty. It’s called an exclusionary warranty because the service agreement provides coverage for everything that is not stated in the contract. Slightly older cars with more mileage may not be eligible for an exclusionary warranty. A stated component warranty offers the next highest coverage. It only offers coverage for the car systems and car parts listed in the vehicle service agreement. A powertrain warranty only provides coverage for major car parts, including the engine, transmission, and drive axle. Some companies cover more than these essentials in their powertrain warranty plans. Others also give customers the option to add coverage for additional parts or systems for an increased rate. Warranty offerings at a glance autopom! Endurance Delta Auto Protect Exclusionary Yes Yes Stated Component Yes Yes Yes Powertrain Yes Yes Yes Exclusionary warranties at a glance autopom! Endurance Number of Plans 6 1 Max Mileage 100,000-150,000 miles Undisclosed Max Contract Length 6-8 years Undisclosed autopom! exclusionary plans autopom! offers six exclusionary plans. The maximum contract lengths available with these plans range between six and eight years. The maximum mileage ranges between 100,000 miles and 150,000 miles. If your car has more than 136,000 miles, it is not eligible for an exclusionary plan. Plans with an MBI include mechanical breakdown insurance. EFG Ultimate; max term: 7 years or 150,000 miles Mercury Ultimate; max term: 7 years or 105,000 miles Royal Ultimate; max term: 7 years or 100,000 miles UCC Paramount; max term: 8 years or 136,000 miles Mercury Platinum MBI; max term: 7 years or 100,000 miles (California, Oregon, and Idaho only) Royal Elite Plus MBI; max term: 6 years or 100,000 miles (California only) EFG Elite MBI; max term: 6 years or 100,000 miles (California only) Endurance exclusionary plans Endurance offers one kind of exclusionary car warranty. Its Supreme plan offers bumper-to-bumper coverage, except for things like door handles, light bulbs, and glass. For more detailed information about contract length and mileage requirements, interested customers should contact Endurance directly. Stated component plans at a glance autopom! Endurance Delta Auto Protect Number of Plans 10 2 2 Max Mileage 48,000-105,000 miles (EFG Deluxe permits 125,000 additional miles) Undisclosed Undisclosed Max Contract Length 4-7 years Undisclosed Undisclosed Parts Covered Engine Transmission Transfer case Drive axle Steering Electrical system Air conditioning system Braking system Cooling system Fuel system Seals Gaskets Differential assembly Suspension Engine Transmission Transfer unit Drive axle assembly Electronic components Air conditioning Brakes Cooling system Fuel system Seals Gaskets Front and rear suspension Turbocharger / supercharger Engine Transmission Drive axle Steering Electrical system Air conditioning Brake system ABS brakes Cooling system Fuel system Seals Gaskets Suspension 4X4 / All Wheel Drive Super/Turbocharger GPS Navigation autopom! stated component plans autopom! has two categories of stated component plans: high-level and mid-level. Plans with an “MBI” include mechanical breakdown insurance. High-level plans High-level plans provide coverage for the following: Engine Transmission Transfer case Drive axle Steering Electrical Air conditioning system Braking system Cooling system Fuel system Seals Gaskets The max contract term is four to seven years or 48,000 to 105,000 miles depending on the plan chosen. If your car has more than 105,000 miles, it is not eligible for a high-level plan. autopom! has six high-level plans: Mercury Deluxe; max term: 7 years or 105,000 miles Royal Premium; max term: 7 years or 100,000 miles UCC Comprehensive; max term: 7 years or 100,000 miles Mercury Gold MBI; max term: 7 years or 100,000 miles (California only) Royal Premium MBI; max term: 6 years or 100,000 miles (California only) EFG Premium MBI; max term: 4 years or 48,000 miles (California only) Mid-level plans autopom! offers four mid-level plans. Mid-level plans provide the following coverage: Engine Transmission Transfer case Drive axle Differential assembly Steering Suspension Fuel delivery system Cooling system Braking system The maximum term length with these plans is five to seven years or 100,000 miles. The EFG Deluxe plan allows its contract owners to extend coverage for an additional 125,000 miles. If your care has 50,000 miles, the EFG Deluxe plan would expire at 175,000 miles. EFG Deluxe; max term: 5 years or 125,000 additional miles Royal Preferred; max term: 7 years or 100,000 miles Royal Standard MBI; max term: 6 years or 100,000 miles (California only) Mercury Silver MBI; max term: 7 years or 100,000 miles (California only) Endurance stated component plans Endurance offers two stated component plans: Superior and Secure. Consumers should be aware that with each Endurance plan, seals and gaskets are only covered if they are part of another authorized repair. If the seals and gaskets are just faulty on their own, the car owner will have to pay to replace them. The Superior plan provides the following coverage: Air conditioner Brakes Cooling system Drive axle assembly Electronic components Engine Front and rear suspension Fuel system Seals and gaskets Transfer unit Transmission turbocharger/supercharger The Secure plan provides the following coverage: Drive axle assembly Engine Seals and gaskets Transfer unit Transmission turbocharger/supercharger While the Secure plan covers less than the Superior plan, it covers the most expensive car items and is less expensive. Delta Auto Protect stated component plans Delta Auto Protect offers two options for stated component extended service programs: Diamond Premier plan and Diamond Plus plan. The Diamond Premier plan includes the following coverage. Engine Transmission Steering system Cooling system Electrical system Air conditioning Fuel system Drive axle Brake system ABS-Brakes Suspension 4X4 / AWD (All Wheel Drive) Super/Turbo Charger Hi-Tech Seals and gaskets GPS navigation The Diamond Plus plan has the following coverage: Engine Transmission Steering Cooling system Electrical system Drive axle Brake system 4X4 / AWD (All Wheel Drive) Information regarding year and mileage restrictions were not available on Delta Auto Protect’s website. Interested car owners should reach out to Delta Auto Protect for more information about these requirements. Powertrain plans at a glance autopom! Endurance Delta Auto Protect Number of Plans 5 1 1 Max Mileage Up to an additional 36,000-100,000 miles Undisclosed Undisclosed Max Contract Length 3-6 years Undisclosed Undisclosed Parts Covered Engine Transmission Transfer case Drive axle Differential assembly Add on: Electrical system Air conditioning system Fuel system Engine Transmission Transfer unit Drive axle assembly Electronic components Air conditioner Cooling system Fuel system Seals Gaskets Turbocharger / supercharger Engine Transmission Drive axle Electrical system Brake system Cooling system All Wheel Drive Super/Turbocharger autopom! powertrain plans autopom! provides customers with five options for powertrain warranties. These service contracts offer the following coverage: Engine Transmission Transfer case Drive axle Differential assembly For an increased rate, car owners can choose to add coverage to their powertrain warranty for the electrical system, air conditioning system, and fuel system. The maximum length for a powertrain warranty is three to six years. Vehicle owners can drive an additional 36,000 to 100,000 miles depending on the warranty plan selected. autopom! offers five options for powertrain warranties: Royal Centennial; max term: 5 years or 100,000 additional miles EFG Powertrain Choice; max term: 5 years or 100,000 additional miles UCC Powertrain Plus; max term: 6 years or 75,000 additional miles Mercury Select; max term: 3 years or 36,000 additional miles Mercury Copper MBI; max term: 3 years or 36,000 additional miles (California only) Endurance powertrain plans Endurance offers one powertrain warranty, the Select Premier plan. This plan covers the following repairs: Air conditioner Cooling system Drive axle assembly Electronic components Engine Fuel system Seals and gaskets Transfer unit Transmission turbocharger/supercharger It’s worth noting that seals and gaskets are only covered as part of an authorized repair. If there are other problems with the seals and gaskets, then the car owner pays for the repairs. Delta Auto Protect powertrain plans Delta Auto Protect offers a powertrain warranty called the Diamond plan. It covers the following: Engine Transmission Cooling system Electrical system Drive axle Brake system AWD (All Wheel Drive) For information regarding mileage limitations and cost, car owners should reach out to Delta Auto Protect. Additional benefits at a glance autopom! Endurance Delta Auto Protect Choose Repair Shop Yes Rental Vehicle Assistance Yes Yes Yes 24/7 Roadside Assistance Yes Yes Yes Accepted at all dealerships and ASE-licensed mechanic shops Yes Yes Trip Interruption (money to cover hotel expenses while waiting for covered parts to be repaired) Yes Yes Warranty administration The administrator of a car warranty is responsible for paying claims and fulfilling all parts of the contract. autopom! offers car warranty plans adminstered by Royal Administration, Enterprise Financial Group, United Car Care, and Mercury Select Management Co. Because autopom! offers plans from several car warranty providers, customers can find many plan options thorugh autopom!. Endurance administers most of its own warranties. It has received a financial strength rating of A from A.M. Best, which indicates its financial stability and ability to meet its claims. Delta Auto Protect also administers its own warranties. It received an A.M. Best rating of A, so it is also a financially strong company. autopom! vs Endurance Endurance and autopom! are comparable in the kinds of vehicle service contracts they offer. autopom! has a few more plan options than Endurance because autopom!’s warranty plans are administered by other companies. autopom! and Endurance also make it easy for customers to access detailed information by posting sample contracts of their plans online. autopom! is more forthcoming about the contract lengths and mileage requirements associated with its plans. For customers on the road frequently, Endurance’s benefit of trip interruption aid is especially nice. Both autopom! and Endurance offer a 30-day money-back guarantee, so car owners can be sure of their choice without financial loss. Either company is a great choice to consider no matter what kind of warranty you are looking for. autopom! Endurance Time in Business 2009 2006 Exclusionary Warranty Yes Yes Stated Component Warranty Yes Yes Powertrain Warranty Yes Yes Plans Administered By Royal Administration, Enterprise Financial Group, United Car Care, Mercury Select Management Co. Endurance (most) Sample Contracts Online Yes Yes Max Contract Length 3-8 years Undisclosed Max Mileage 48,000-150,000 miles With powertrain warranties: 36,000-125,000 additional miles Undisclosed 24/7 Roadside Assistance Yes Yes Rental Car Assistance Yes Yes Trip Interruption Yes Money-back Guarantee 30-day 30-day Endurance vs Delta Auto Protect Endurance and Delta Auto Protect both provide great benefits with their vehicle service contracts. Any car owner who does a lot of traveling would have peace of mind with the trip interruption benefit. Both companies administer their own plans and have received high financial strength ratings from A.M. Best. These high ratings indicate that these companies are able to meet their claims obligations. Endurance does a good job being transparent with customers by having sample contracts available online. However, both Endurance and Delta Auto Protect could make general information about contract lengths and mileage requirements accessible. While Endurance has slightly more industry experience than Delta Auto Protect, both companies are great choices for customers in the market for a stated component warranty or powertrain warranty. Endurance Delta Auto Protect Time in Business 2006 2013 Exclusionary Warranty Yes No Stated Component Warranty Yes Yes Powertrain Warranty Yes Yes Plans Administered By Endurance (most) Delta Auto Protect Sample Contracts Online Yes No Max Contract Length Undisclosed Undisclosed Max Mileage Undisclosed Undisclosed 24/7 Roadside Assistance Yes Yes Rental Car Assistance Yes Yes Trip Interruption Yes Yes Money-back Guarantee 30-day Undisclosed Delta Auto Protect vs autopom! Delta Auto Protect is an ideal choice for people who are on the road frequently because of its trip interruption benefit. It is also highly rated by A.M. Best, so it is financially strong and able to meet its obligations. Delta Auto Protect is also ideal for customers seeking a stated component warranty or powertrain warranty. autopom! has its own advantages. Customers can view sample contracts online and have access to a 30-day money-back guarantee. For individuals seeking an exclusionary warranty, autopom! has a great selection. Delta Auto Protect autopom! Time in Business 2013 2009 Exclusionary Warranty No Yes Stated Component Warranty Yes Yes Powertrain Warranty Yes Yes Plans Administered By Delta Auto Protect Royal Administration, Enterprise Financial Group, United Car Care, Mercury Select Management Co. Sample Contracts Online No Yes Max Contract Length Undisclosed 3-8 years Max Mileage Undisclosed 48,000-150,000 miles With powertrain warranties: 36,000-125,000 additional miles 24/7 Roadside Assistance Yes Yes Rental Car Assistance Yes Yes Trip Interruption Yes Money-back Guarantee Undisclosed 30-day Company advantages Each of these companies provide excellent service and are trustworthy companies. It’s hard to go wrong when choosing among autopom!, Endurance, and Delta Auto Protect. autopom! 21 plans to choose from 3 kinds of extended service contracts Sample contracts online 30-day money-back guarantee Endurance 3 kinds of extended service contracts Sample contracts online 30-day money-back guarantee Trip interruption benefit “A” rating from A.M. Best Delta Auto Protect Trip interruption benefit Stated component extended service contracts Powertrain extended service contracts “A” rating from A.M. Best
Guest Post by Mike Jones Whether you’re buying a new car or purchasing a used vehicle that’s almost as good as new, you can’t help but worry about what repairs your vehicle may face down the road. Like death and taxes, we can’t seem to escape car problems or the costs that come with them. A broken AC or leaking water pump, a transmission issue or ignition problem — all come with costly repairs. It’s best to prepare for these car issues well before they actually happen so that your vehicle and your wallet don’t pay the price. One of the best ways to prepare for the inevitable is by investing in an extended vehicle warranty. Over the years extended vehicle warranties have been the target of myths and fiction that have made drivers ask the question: Is an extended vehicle warranty actually worth it? The easy answer is yes. If you want peace of mind, an extended vehicle warranty is definitely worth it, whether you’re driving your first new car or your fifth used car. Don’t let the following myths fool you into putting your vehicle and your budget at risk. 1. Extended warranties are a waste of money This is perhaps the biggest myth surrounding extended vehicle warranty plans. Many drivers forgo warranty plans because they worry that they’re too expensive. However, while you can find an extended vehicle warranty for as little as $1,119 (Platinum coverage, $0 deductible, in California, for a 2018 Chrysler Pacifica plug-in hybrid), some major car repairs can cost you anywhere from $500 to $7,000. You’ll be spending a lot more money if you’re not covered by a warranty plan. If you opt for an extended vehicle warranty, your plan will likely pay for itself after one large repair bill. This doesn’t include the added benefits a warranty offers. Extended vehicle warranties don’t only help cover your vehicle repairs, but some include roadside assistance for when your car breaks down, rental vehicle assistance for when your car is in the shop, and repair shop choice. Some providers also offer payment plans to help make payments easier for drivers. Where does this myth come from? It comes from the fact that many dealerships overcharge for extended vehicle warranties. These plans come with loans and interest rates, making many drivers feel like they’re being played. 2. Only dealerships sell extended vehicle warranties This is partly true. Only dealerships sell extended vehicle warranties. But you can find vehicle protection plans from a variety of providers across the nation.A vehicle protection plan is a convenient and affordable alternative to an extended vehicle warranty. Despite the difference in its name, it offers many of the same benefits (sometimes with a few additional perks like no-fee payment plans). While you can buy an extended vehicle warranty directly from your dealership, don’t limit your options. Explore other vehicle protection plan providers. How do their plans stack up against those of the dealership? Who offers the lowest prices? Who offers the greatest benefits? Be sure to check their reputation at the Better Business Bureau or Trustpilot.com. 3. All warranties are the same No two car warranties are exactly the same. In fact, even dealerships or providers offer several different types of warranties. They differ in price, in coverage, in benefits, and in features. The type of coverage you receive depends on several factors. First, it depends on how much you want to spend. If you’re willing to spend more on a warranty plan, you should also be expecting more coverage. The type of coverage you receive also depends on your state of residence and the year, make, model, and mileage of your vehicle. For example, the type of coverage available for a 2019 Lexus will differ greatly from that of a 2003 Ford. It’s important that you shop around, just as you did when you purchased your car. Many providers offer free quotes and let you look at contract samples. Read the language in the contract carefully. When you do, the differences between the plans you’re looking at will be obvious. Remember to check online for reputation of the provider. 4. I’m already covered by my manufacturer’s warranty so I don’t need double coverage While you may be covered by a manufacturer’s warranty shortly after you buy the car, you won’t be for long. The original factory warranty comes with year and mileage limits that leave you on your own once they’ve been exceeded. It’s a good idea to invest in an extended vehicle warranty or vehicle protection plan before your manufacturer’s warranty expires. When you drive a newer car, you’ll be guaranteed a higher level of coverage, longer terms, and lower rates. The same can’t be said if you wait five years for protection. You and your car with more wear/tear and miles won’t get as good a deal had you not waited. Now that you’ve uncovered the myths of an extended vehicle warranty, it’s time you look into the options and peace of mind that are available for you and your vehicle. No one wants a road trip interrupted by car problems or a vacation abandoned because a repair shop bill broke the bank. One thing that’s not a myth? With a vehicle protection plan, you’ll drive with automotive peace of mind knowing that your car and your wallet are covered.Mike Jones is the president and CEO of autopom!, a BBB Accredited A+ rated provider of vehicle protection plans for both new and used cars. Click here to learn more about autopom!
[h2]How We Evaluate Car Warranty Companies[/h2] We evaluate extended car warranty providers on a number of criteria-most notably on the quality of their roadside assistance, rental car options, warranty coverage, and customer service. For example, the best car warranty companies provide multiple customer service channels and are available 24/7, as opposed to normal business hours only. The best companies have round-the-clock roadside assistance, and will reimburse customers for towing expenses. Each company is reviewed and ranked against the same set of standards, and companies that consistently excel in these categories are given top spots. To learn more about how we rank and review these companies, click here. After thoroughly vetting all extended car warranty providers, we've identified five companies in particular as standouts in the industry: #1 CARCHEX Topping the list is CARCHEX, a car warranty broker that aggregates quotes from a marketplace of warranty providers, and provides customers with the warranty that best fits their needs. CARCHEX got its start as a consumer advocacy service designed to protect car-buyers from seller fraud. Then in 2004, CARCHEX began offering its Extended Vehicle Protection service, which helps customers find an extended warranty with the most coverage and at the best price. What we like about CARCHEX One of the things we like most about CARCHEX is how easy and hassle-free it is to obtain a free quote.. In addition to instant, 24/7 access to CARCHEX's Direct Quote Engine, customers can also compare warranty products, speak directly with customer service representatives-who, according to the user reviews posted to BestCompany.com, are among the best in the industry. The company's flexible payment options also come with a 30-day money-back guarantee, something we feel is a hallmark of top companies.. #2 Endurance Endurance is a direct vehicle warranty provider that offers service to vehicles with less than 160,000 odometer miles and are less than 10 years old. The company has received awards and accolades from numerous third-party organizations including the Chicago Tribune's "One of the Top Workplaces of 2015." Endurance aims to cut out the middleman by providing direct service, and savings, to customers in need. What we like about Endurance According to our research, Endurance's service plans are 100 percent insured by some of the most trusted insurance providers in the country. This means that all claims for covered repairs are paid upfront by Endurance. We feel this provides an added benefit to customers, as they won't need to wait to be reimbursed or pay any out-of-pocket expenses. Endurance's three service options each come with a 30-day money-back guarantee, 24/7 roadside assistance, lockout assistance, emergency fuel delivery. #3 American Standard Auto Protection American Standard Auto Protection (or ASAP) is one of the largest and fastest growing car warranty providers in the industry. ASAP connects car owners with more than 425,000 approved dealerships and mechanics to provides its customers with the most comprehensive extended warranties on the market. ASAP sets itself apart in the industry by helping customers find any and all available warranty discounts for their vehicles. What we like about ASAP We were very impressed with ASAP's vehicle coverage, which ranks among some of the most comprehensive in the industry. Plans cover nearly every repair or adverse situation your car might encounter, right on down to 24/7 dead battery replacement. Not surprisingly, the process of finding a quote with ASAP is one of the fastest we've seen. We also awarded points for ASAP's expansive nationwide network of dealerships and mechanics, which allows customers to get their vehicles repaired and back on the road "as soon as possible." Delta Auto Protect Delta Auto Protect is a nationwide extended warranty provider that works directly with repair centers to help ease the burden of paying for expensive vehicle repairs. Delta Auto Protect's staff understands the nuances of the car warranty industry, and are best equipped to help customers navigate coverages and exemptions for their vehicles. With a network of over 300,000 ASE-certified experts, Delta Auto Protect provides expert diagnosis and repair to help customers get back on the road in a timely manner. What we like about Delta Auto Protect Each of the three service options we researched from Delta Auto Protect provides competitive and comprehensive coverage, including 24/7/365 roadside assistance. One added benefit we found to purchasing an extended warranty through Delta Auto Protect is the ability to transfer the warranty to the next car owner, or transfer the warranty to a new vehicle. In the event that customers are not satisfied with their coverage in the first 30 days, they will be refunded through the company's money-back guarantee. #5 ForeverCar Winner of the 2016 Chicago Innovation Award, ForeverCar is looking to take the extended vehicle warranty world by storm by providing the customers with the largest marketplace of vehicle service contracts in the industry. The company boasts a 98 percent customer satisfaction rating, and has received an Excellent status rating from A.M. Best, meaning customers will not need to worry about whether they will receive full immediate reimbursement on their claims. What we like about ForeverCar One thing we determined that especially sets ForeverCar apart from other extended warranty providers is that it not only provides prices for its own brokered products, but also the prices of its competitors. This quote comparison tool is unique in the industry, incredibly useful, and a clear indication of the company's mission: to help car owners find the best combination of coverage, duration, and cost-even if it's not with ForeverCar. We like that ForeverCar provides three service plans are tailor-made to address nearly every customer's unique circumstances. To view the rankings of all car warranty companies, click here. The Future of the Car Warranty Industry While the car warranty industry is becoming increasingly popular among car owners with a little extra to spend, it still has a number of challenges to overcome in the years ahead. First, in some cases, the premiums these car warranty providers charge can end up being more expensive over time than price of the actual claim for a needed repair. Only 50 percent of car owners who have purchased an extended warranty (either from the dealer or a third-party company) since 2000, has ever actually used the warranty. In many ways, this industry faces the same challenges as the insurance industry, and will need to find a way to incentivize customers who might otherwise just save their money for a rainy day instead of investing it in a pricy extended warranty. Additionally, car warranty providers will need to find ways to 1) expand the number of cars covered and 2) investigate the repair and maintenance history of used cars. Currently, many car warranty providers have strict eligibility requirements for the cars they cover, including the age of the car and the number of total odometer miles. The best companies are fairly flexible with these conditions, but other companies are more stringent. Companies will also need to create a more comprehensive vetting process of the used vehicles they cover, mainly to prevent themselves from insuring cars they can't cover, and denying reimbursement on claims. As the industry continues to evolve, BestCompany.com's ranking criteria will evolve with it. Car owners can rely on BestCompany.com to stay up-to-date with industry changes and top-recommended companies.