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Imagine driving into work on a routine winter day when you hit a patch of black ice, spin out of control, and crash into a mailbox or another small object. As jarring as these events can be, it is likely that you won’t be responsible for paying any more than a deductible to fix your car. Car insurance is an essential component of car ownership, and many states require that all drivers be covered at least at a minimum level. On the other hand, imagine that it is a different winter morning. You are driving to work, and suddenly your car will no longer shift gears, making it impossible to drive faster than 20 MPH. Not only is this situation stressful and exhausting, but it’s also highly likely that you will have to pay to repair your faulty transmission completely out of pocket. This is where an extended warranty, such as Toyota Extended Warranty Options, can come in handy.
People are Comparison Shopping
As with all aspects of car ownership, it is necessary to shop around before buying an extended warranty. Smart shoppers are saving money by comparing different companies and choosing the one that best fits their budget. When comparison shopping for an extended car warranty, a variety of factors should be considered. Some companies are less than reputable, so it’s important to read the fine print before you buy. Rather than simply choosing the cheapest option, make sure that you understand which parts are covered by the warranty and how to file a claim before signing up. If you can find reviews from actual customers, look through them to be sure that you’re getting quality coverage. While online reviews aren’t always trustworthy, if you notice a pattern, it may be best to avoid the warranty. You can also look at the company’s rating with the Better Business Bureau. Some companies, like olive, have A+ ratings with the bureau. If your company is not transparent or has a lot of complaints lodged with the BBB from current and former customers, it may be best not to do business with that company.
People have More Coverage Options
Like car insurance, extended car warranties offer a range of coverage options. Lower priced plans may only cover components like the drive train and transmission. A transmission alone can cost over $3,000 to repair depending on the model of your car, so these plans will save money in the event of a mechanical failure. However, while choosing a plan with higher coverage makes the monthly payment higher, these plans tend to cover more. With a higher-level plan, other parts are covered, like the suspension, the brake system, turbo systems and more. Cars have a variety of parts that will wear out and break over time, so having a higher level of coverage can save you more money in the event of a mechanical failure on a part.
People No Longer Have to Buy a Vehicle Service Contract at the Point of Sale
One common criticism of extended car warranties is that they add money to the monthly payment. These warranties, known as Vehicle Service Contracts, are commonly sold by dealerships and can only be purchased at the point of sale. Not only does this add money to your monthly car payment, but it is also a high-pressure situation in which you may not have time to read all of the fine print. Rather than being talked into paying for a policy that may or may not be beneficial to you as a car owner, it is now possible to buy extended warranty coverage after you’ve purchased the car. This option lets you buy at your own pace and do a considerable amount of research to find a plan that works for you. Instead of adding to your monthly car payment, you have the option of picking a warranty that best fits into your budget.
People are Covered in the Event of a Mechanical Failure
By choosing an extended warranty, customers are saving money on costly repairs. When a mechanical failure does occur in their car, they are merely responsible for a deductible, which makes these situations less stressful than before. Also, it allows car owners to fix parts of their engine that they might not otherwise, letting them drive their cars for a longer period of time. Fixing engine components for a small deductible keeps your car on the road well past the time of your loan, saving you money on the payments you’d incur if you have to buy a new car.
Extended warranties are saving people money in a variety of ways. With the option to comparison shop and find a plan with a reputable company, car owners are likely to have better coverage. Not only do these plans save drivers money on mechanical failures, but they may also help drivers save by choosing coverage that is best for them. Extended warranties also offer peace of mind, helping keep you calmer in the event of a mechanical failure.