Extended Car Insurance

In a December 2007 survey conducted by Consumer Reports of more than 8,000 readers, it was found that buying costly extended new car warranty are a poor deal because the average consumer will not need it. The survey found that sixty-five percent of the survey takers reported that they spent significantly more for a new car warranty than they got back in savings on repair cost. However, extended warranties were found to be a better deal for those with troublesome cars. Many things have to be taken into consideration when purchasing an extended warranty.

An extended warranty is a contract between you and a service provider. There are advantages and disadvantages of buying an extended warranty policy. The main advantage of purchasing this coverage is that a person could end up paying hundred or thousands of dollars on costly auto repairs without it. The disadvantage of buying this coverage is that a person could end up overpaying by duplicating coverage that is already included in the current policy. The buyer should always compare their current policy with the extended warranty policy to avoid duplication.

There are several areas to think about before purchasing extended car insurance. First, you do not necessarily need to buy an extended warranty at the time of purchasing a new vehicle. It is always a good idea to start looking around about six months before the actual warranty expires. Second, have a trusted mechanic to review a sample of the contract before purchasing this policy. Third, choose a warranty company that has been in business for years. Fourth, choose a warranty that covers all 50 states. Finally, and most importantly choose a warranty that has a money back guarantee.

There a many reputable insurance companies and dealers which provides extended car insurance. Companies like Fidelity, GM, Honda, Ford, etc. are all highly reputable companies which offer extended car insurance. As a individual you must choose the policy that is right for you. Price is a major factor in making your decision, but there many other reasons which have been previously stated for how much coverage you get and the time in which the policy is purchased. It is your choice. You should choose wisely.