What to Understand With Extended Car Coverage
Looking for the best ways to keep the cost of making repairs to a vehicle should include researching different extended car warranties. These warranties are set up to aid a person in not having too high of repair costs when putting a vehicle into the shop. Warranty companies work on the same basis that most car insurance do in that they give money out when a claim is made for repairs. However, there are some facts that can be highlighted to make understanding how these policies really work.
There are a lot of questions that motorists usually have before they agree to sign with a warranty company. One of the most popular questions is how is the deductible applied when getting repairs done? Just like with car insurance, a person will merely have to make a claim and pay a preset amount of money and anything over that amount will be the responsibility of the company.
The claims process is one of the more tricky businesses and needs to be explained thoroughly by a company agent before ever signing an agreement. To process a claim, first the car must be brought to an accredited garage and the problem with the automobile must be diagnosed. Then the garage must call the insurance company to let them know the cost of fixing the problem. The motorist will then pay the deductible amount and the warranty company picks up the rest.
Waiting periods for policies to fully become activated is also a situation to watch out for when getting one of these plans. There has been known to be a 30 day wait period before a warranty agreement becomes fully activated as a measure for these companies to protect themselves. However, people who have dealership agreements will definitely have to wait 30 days before the policies are activated.
When it is time for a policy to be cancelled for any reason certain charges may also be applicable as well. These fees are usually hidden in the writing in a contract so it is important to look through its pages before committing to any deal. These charges are a penalty for not honoring an agreement because the company expects the monthly payments for the life of the policy.
Options for paying these plans are also as varied as the different companies that offer these services. While there is always the old method of mailing checks to a company each month, people also have the option of paying bills online. Setting up automatic payments from a checking, PayPal, or bank account is also an option. This last option works best for getting each bill paid on time to avoid bad credit ratings.
Getting extended car warranties for a car has many pitfalls that can be avoided by reading a contract thoroughly. Before signing any agreement, people should always try to have a good working knowledge of what is and is not covered in a service agreement. When looking for the right warranty, a prospective buyer should consider the effectiveness of the policy versus the cost to obtain it.