First of all, make sure that you understand contract language before you commit to anything in writing. Getting a used car extended warranty to enhance your coverage is often a good idea, but only if you know what to look for. You should know exactly what each type of coverage means, what each repair covered does, and what the chances that it will be needed are.
Before you ever even go to a dealership to get a warranty quote, do a little research on your own. More than likely, the quote you receive at the dealership is much higher than what you should actually pay to cover your car, but if you have done your research online, you can inform the dealer how much you're willing to pay for what he's offering, with confidence that your quote is the fair one. And if he doesn't accept your offer, you will know what places offer the better deals. Warranty companies always offer better initial prices than the dealership will, but often the dealership can be brought down to the price offered by the warranty company once they realize that you have done comparison shopping and can't be tricked into paying more.
In order for you to find out the price of a warranty, you'll have to provide some information, like the year and make of the car, the state you purchased the car in, and the miles on the car. Some companies will even want to know the history of the vehicle, like how well it has been taken care of, and whether or not the vehicle was in an accident before you purchased it.
As important as it is to get a competitive price on your used car extended warranty, make sure you're not basing your purchasing decision on price alone. Be sure to go with the warranty you think you will actually use, although it should fit within your budget. Select a warranty that does not overlap with your insurance, or what the dealership already agrees to cover. An extended warranty should be an extension of existing coverage, not a repetition of said coverage. A used car extended warranty is not the same as auto insurance and should not be treated as a substitute for a good insurance policy. Your warranty can only cover so much.
Also make sure you get as much in writing as you can, and make copies of everything. That way if you decide to sell the car or need any types of repairs done, you'll have all the necessary documents. This avoids a lot of hassle. And if a warranty company is reluctant to give you copies of any of the documents you sign and wants to keep them in their “files,” beware! Last but not least, be sure to get your used car extended warranty from a company you can trust. You can discover the reliability of a given company by checking out their ratings with online rating companies such as AM Best, and Standard and Poors. Also protect yourself by examining the incidences of complaints about the company you are considering doing business with through the services provided by the Better Business Bureau.
By Tamiya King