Shopping for an auto warranty can be hard and often confusing. The best advice is to shop smart. The first place to start is to look at the car you want to buy a warranty for. Is it old or new, have you purchased the car yet? There are a variety of plans for a warranty that suits your needs. Your goal is to get the right plan for the best price to fit your budget. Online and big companies have plans for used cars, new cars and extended coverage.
The biggest mistake you can make is buying a warranty from a new or used car dealer. When you are purchasing your new car and the dealer tries to sell you a warranty they are much more expensive than a warranty sold by a private company. Dealers make their commission on after-market items, and a warranty falls into this category. By checking out the repair history of the used car you want to buy a warranty for, you can anticipate what your possible repairs are going to be in the future. Then you can decide what kind of warranty you want to purchase based on the car and your needs.
It also helps to review bills from the past few years to help anticipate costs. Talking to a mechanic is a great way to help you project your needs for your warranty. Make sure the warranty companies you're going to consider have reinsurance for all polices. This protects you in the event of any type of default. Check that the reinsurance company is rated at least an A (excellent) by A.M. Best & Company. The highest ratings offered by A.M. Best are A++ and A+ (“superior”), followed by A. The ratings B++ and B+ are “very good”, but just one notch above A.M. Best's “vulnerable” ratings of B, B-, C++, C-, D, E and F. Do not purchase a warranty if they have those ratings. As in all contracts the best thing to do is to check the fine print and make sure the name of the reinsurance company is included in the warranty.
To sum it up chose a warranty based on your price range. Pick a company with good standing. Check the fine print on all contracts, do your research and talk to your mechanic. Don't feel pressured to buy a warranty from a dealership. Do your research to get the best deal. Buying a warranty online is a great way to get a good deal. Make sure you're dealing with a reputable company. The best grounded companies have a brick-and-mortar organization before setting up business. They understand the warranty business more. Good questions to ask for the online businesses are:
• What standing does the company have with the Better Business Bureau?
• How long have they been in business?
• Is their privacy policy approved by the BBB and does it actually protect you and your warranty?
• Is their Web site secure?
• Can you talk to someone when you call their contact number?
• How helpful are they in providing the services they claim?