So, your car has outlived the initial warranty period, unsurprisingly!
What are your plans for insuring against damages and accidents? Are you looking for car insurance? Or is a car warranty your best bet?
If you are looking to cut down on costs and consider yourself a relatively safe driver, you can consider the second option. Know that this strategy comes with higher risk
Used Car Warranty versus Car Warranty
When we talk about the initial warranty, we consider a complimentary service that comes with the car we purchase. However, extended warranties and used car warranties are different.
These warranties which come into effect after the expiration of the initial warranty period usually come at an additional cost and are purchased from third party car warranty companies.
Used Car Warranty versus Car Insurance
But why will you buy a car warranty when you already have purchased the mandatory car insurance for your vehicle?
The answer to this is straightforward: most damages to the car come from collision or theft. Car insurance is created to cover these losses.
However, these types of incidents are not the only factors that deteriorate the performance and life of your car. Sometimes, you witness mechanical breakdowns in your car which don’t relate to accidents. In such cases, car owners can recover the repair costs through car warranties.
In other words, car warranties – especially used car warranties – work like car insurance to give you peace of mind but the damages they cover are different from insurance. Just like car insurance, you may have to pay a deductible before you can avail the help your car warranty issuer has promised in time of wear and tear of the vehicle.
One thing you should remember when you buy a used car warranty is about taking care of your vehicle. If you are thinking that every damage to the car will be reimbursed even if it arose out of lack of care and routine maintenance, you are wrong. Car warranty companies only commit to paying damages if you have followed the maintenance schedule and can show the record that you did.
Should You Get a Used Car Warranty?
Now you have understood the nitty-gritty of a car warranty, let’s move towards a crucial question: do you need one?
A used car warranty is not for everyone.
So, the answer depends on two factors. First, you have to understand the quality of your car. If it’s prone to wear and tear and major mechanical breakdown, you should consider buying protection against these costs.
You might also want a car warranty if you are buying a used car because the uncertainty of quality rises in such purchases sharply.
Best Used Car Warranty Companies
If you are purchasing a used car or if you are wary of the deteriorating condition of your car, you should be searching for the best-used car warranty companies to protect against unforeseen costs. Here are our top three picks for this purchase.
Endurance Auto Warranty
The warranty is great for really old cars.
It can cover the cars of up to 20 years of age. The maximum mileage which can get the eligibility is 200,000 miles. You get a standard refund guarantee of 30 days with this warranty. Know that this waiting period lasts 30 days or 1000 miles.
You can get a maximum term guarantee of 15 years. The best thing about this company is its positive rating from the customers. This level of service is guaranteed because the company directly deals with the policyholder without having agents to take care of claims.
This warranty company also covers cars of different ages. Its contracts can be transferred with the transfer of car titles. You also get a 30-day refund period with this warranty.
What’s best with the car warranties from this company? You can get the most exclusive, factory-like coverage from it. You can get basic powertrain coverage to the most comprehensive bumper-to-bumper coverage.
It extends reliable, but not exemplary, customer care service. BBB reports a complaint ratio of 0.3%. Also, make sure that you know what you are buying from the company as most of its policies come with exclusions. Make sure to read the fine print to understand the warranty and parts it is covering.
If you are looking for warranty options without minimal upfront commitment, you should go for CARCHEX’s warranty. You can get a car warranty for a vehicle having less than 10 years of age. Its mileage should be less than 90,000 miles. You can start with one down payment and follow up with a six-month, twelve-month, eighteen-month, or twenty-four-month payment.
You get the standard 30-day money-back guarantee.
What’s its best feature? It’s its high quality of customer care. The company has earned an A+ rating because of its commitment to prioritizing customers’ interests.
Before you buy a car warranty, know your needs. Once you have decided to proceed with the transaction, use this list of the top three car warranty companies to get the most out of your purchase.