Extended auto warranties are a wonderful thing. They allow car owners a certain amount of peace of mind, knowing that if problems arise in their car past the time that they are covered by their standard manufacturer’s warranty, they will not be on the hook for expensive repairs and major replacements. But there are things to consider when shopping for an extended warranty program. It is not as simple as saying “cover me”, and dropping a bit of cash.

One of the major things that many automobile owners overlook is the deductible charged on repairs under an extended warranty. Some companies will offer a zero deductible for a higher price, but if your particular make and model are prone to problems, this might be the cheapest option. Other types of coverage are less expensive up front, but could cost more in the long run. Some types of coverage charge a deductible based on each repair, while others have a deductible based on each visit to a repair shop. Be careful which one you choose; a per-repair deductible can add up, if your car develops several issues at once.

Even if the deductible is low or even nothing, make sure you read the fine print on your extended warranty to ensure that you are not required to pay for the repairs out of pocket and then file to be reimbursed. This can mean that, while you will eventually get your money back, you will be expected to pay the full costs of any repairs, and then make a request of the warranty company to repay you for the work that has been done. There is also an inherent risk here, as a denied claim on your warranty could leave you carrying the entirety of the repair bill yourself. Ideally, your extended warranty company will have a program in place to make the payments for you immediately, so that you never have to be out of pocket for any costs of repairs, even for a short period of time.

These might seem like small questions to ask, but they are important pieces of information to have about your extended warranty coverage. Extended auto warranties come in all shapes and sizes – and costs. And while the initial outlay on your warranty might have been less than what the competition was offering, if your warranty dings you with high deductibles and slow reimbursement, it could mean that you end up paying for more than you bargained for in the end. The solution, as always, is to stay informed, and know what you are signing up for.

Author: Gregory D Nelson
Article Source: EzineArticles.com
Provided by: Cool mobile gadgets