Is a Used Car Warranty Worth the Money?

Purchasing a used car warranty is one way to get peace of mind when buying a pre-owned car. It protects you from the cost of unexpected repairs if your vehicle no longer has the manufacturer’s warranty.

If you purchased a relatively new vehicle, it might still have its original warranty from the automaker. However, three-year-old cars or older most likely no longer have the original manufacturer’s warranty, so it is best to get a used car warranty.

Remember, though, this type of coverage does not come cheap. It will cost you significant money to get protection from costly repairs. So, it’s only natural for you to ask whether it is worth investing in such coverage. Here are a few ways to maximize the value of a used car warranty.

Know Your Coverage

A used car warranty is a service contract also referred to an extended vehicle warranty. You need to go over specific coverage details because a used car warranty does not cover everything. Be aware of what’s included and excluded under your policy.

Start reviewing the coverage even while still shopping around for a warranty provider. Get price quotes from several companies and compare their offerings to get the best deal for your money.

Only Deal With Reputable Companies

You might have the urge to get coverage from a company that offers very low rates but is relatively unknown in the industry. Consider the offer but ensure that you do your due diligence. It may be cheaper to give your business to a new provider, but you might have difficulties when filing a claim.

Read up on extended car warranty companies and review client feedback about their services. There are a ton of reviews you can access online and use as reference to find a reputable auto warranty provider.

Customize Your Coverage

Another way to make a used car warranty worth your money is to customize the coverage according to your needs. Used car warranty providers allow you to adjust the coverage of your policy, unlike a manufacturer’s warranty that typically offers the same coverage.

For instance, if you’re a big fan of car entertainment systems, you can ask your extended car warranty provider to cover those components in your plan. Car entertainment systems are bound to get broken with regular use after a few years. However, if you’re just concerned with driving from point A to point B without any issue, you can stay with the standard policy.

File a Claim

One of the reasons some people consider used car warranties as an additional financial burden is that they never get to use their coverage.

Some say they were unaware of what kinds of repairs are covered, while others forgot that they have an extended warranty. You need to familiarize yourself with your coverage to avoid these situations.

Consider filing a claim even for simple repairs as long as they’re part of your warranty. Filing claims is one way of getting the most value out of your coverage.

Remember to Use the Additional Benefits

Aside from covering repair costs, some auto warranty providers offer other additional services to policyholders. They may provide tire replacement, 24/7 roadside assistance, and towing services. Other warranty companies give out movie tickets and shopping vouchers for clients to enjoy. Take note of the additional perks available to you and make sure to avail them.

The Bottom Line

As a consumer, you want to get the best value for your money, whether it’s a big or small purchase. The same holds true when investing in a used car warranty. The tips above will help you maximize your policy’s worth. Remember that it’s not just about the money, but it is also about the security, convenience, and peace of mind you’ll get from an extended auto warranty.

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