Written by: Jen Wagner
Last updated: December 22, 2024
Owning a car is a big expense. Between the loan payments, insurance, and fuel costs, it all adds up. But with an extended car warranty, you can worry less about pricey, unexpected repair costs. Instead, you can focus more on enjoying your new or used car. But to truly maximize your investment, you must first understand the key details of your contract, including what it covers and excludes.
Understand Your Coverage Details
Having additional concerns about your service agreement after you sign the paperwork is not uncommon. To help make an informed decision before committing, you must pay attention to the inclusions, exclusions, and everything listed in fine print. Here are a few details to look out for to help safeguard your budget and peace of mind:
Know Who Can Repair Your Car
Before you book an appointment, you first need to know where you can go for service. Some dealership contracts may restrict car repairs to their service department, while other providers give you the freedom to choose your repair facility or ASE-certified mechanic. Save yourself the frustration and money by determining who can service your vehicle before that time comes and before committing to a warranty agreement. Furthermore, make sure the mechanic or repair facility servicing your car is reliable and trustworthy.
Find Out Who Pays for Repair Work Upfront
Depending on the provider, you might have to pay the bill upfront and get reimbursed later. Or, the provider may pay the claim directly, sparing you the hassle of being the go-between. Knowing who is responsible is paramount—the answer to this very significant detail will help prevent unexpected bills and allow you to make necessary preparations in advance.
Learn Which Parts Are Covered
No matter the type of contract you choose, there will always be limits to what your warranty covers: different plans cover different parts of the vehicle. An exclusionary plan, for example, will offer the most comprehensive coverage and is the most comparable to a bumper-to-bumper warranty. However, a stated-component or inclusionary extended warranty will only cover the vehicle components that the contract lists. So, be aware of the coverage to avoid surprise out-of-pocket repair costs.
Ask About Perks and Available Discounts
Many providers offer extra benefits and discounts. Therefore, be sure to inquire about perks like roadside assistance, locksmith support, rental car reimbursement, and trip interruption services. You may even qualify for a discount if you’re a new customer, military personnel, or a government worker. Saving money and gaining additional benefits is always worth it!
Be a Responsible Driver
Protecting you and your passengers requires more than defensive driving techniques. It also means staying up-to-date on routine maintenance and paying attention to the warning signs that something is wrong with your vehicle. What does this look like as a can owner? Keep reading:
Follow the Recommended Maintenance Schedule
Staying on top of your vehicle’s regular maintenance schedule, as outlined in the owner’s manual, is essential for keeping your warranty valid and extending the life of your vehicle. The schedule will specify when you must complete services like oil changes, fluid checks, and tire rotations. Failing to perform essential upkeep can result in costly repairs and the termination of your agreement.
Document All Maintenance & Repair Services
Keeping a record of all maintenance and repair activities can be a big help when filing warranty claims and verifying services. Furthermore, it can aid in giving you peace of mind and financial protection. The simplest way to do this is by building a thorough record of your maintenance activities and repairs. Gather documents like bill statements and copies of receipts and store them all in one location. If you ever have to prove a repair was made, you’ll know exactly where to look.
Learn How to File a Claim Effectively
Filing a claim differs among providers. Therefore, understanding the process before you face a breakdown is critical. Knowing what to do can help you make the most of your extended car warranty and avoid unexpected costs:
- Start the claims process as soon as an issue arises. The number you need to call will be on your policy paperwork.
- Use your roadside assistance to tow your vehicle to an approved repair shop.
- Have your contract number and service records on hand. The repair facility will need to contact your provider’s claim department for approval to complete any necessary repairs.
- Pay the deductible once the claim is approved. Without payment, repairs will not be made.
- Once the repairs are complete, either you or your provider will pay the bill. If you pay initially, submit detailed paperwork to your provider for reimbursement. If your provider pays, the repair facility will send them the bill directly.
Find the Best Car Warranty for You
Having an auto protection plan is a beneficial investment, regardless of whether you have a new or used car. While the process may seem overwhelming, knowing a few tips and tricks ahead of time can help simplify the process before you finalize the agreement. That said, don’t hesitate to reach out to customer service with your questions or concerns. They are there to help you! Looking to explore your coverage options? Check out our top picks and their protection program reviews today.
