Why do I need an extended auto warranty?
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Since common mechanical repairs can cost into the thousands and these costs are rising rapidly; protecting your automotive investment should not be taken lightly.
Whether you own a new or older make/model, an extended auto warranty will provide you with peace-of-mind protection regarding costly mechanical repairs that can happen at any time during the life of your vehicle.
Buying an extended auto warranty today will allow you to avoid paying higher rates later due to price increases and required surcharges due to the multitude of issues that develop as the vehicles flaws become public knowledge. You'll be able to immediately take advantage of your plan's benefits: towing, lost key/lockout, and car rental discounts.
Why should I purchase an extended auto warranty now if my vehicle is still covered by the manufacturer?
As your vehicle accrues age and miles, the price for an extended auto warranty will rise as do the repair costs that you would experience for an older, out-of-warranty vehicle. You are only buying total mileage coverage, not addition of mileage to your current total.
Capitalizing now on your vehicle's newness and low mileage is the most logical approach as you plan for inevitable future repair costs. An extended auto warranty will provide you with peace-of-mind protection regarding such expenses. Some are transferrable, allowing for increased vehicle resale value.
What about the deductible?
Fully investigate a policy's deductible before signing on the dotted line. Consider not only its amount, but also whether it's per visit or per repair. With a per-visit deductible, each visit to the shop will run you a fixed amount, regardless of how many parts are repaired; a per-repair deductible applies to each serviced part. What sounds like a minor difference may, under certain circumstances, have a major impact on your wallet.
If, for example, you've got a $100 per-repair deductible and you take your car in to get the air conditioner, fuel pump and alternator serviced, you'll be out $300. Had you opted for a per visit deductible, those repairs would only have cost you $100.
There are still $0 deductible policies. You will have to pay extra for this type of extended auto warranty, but if your circumstances become such that you have to take your car in frequently, you'll find that this policy more than pays for itself. (From wral.com.)
