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How Much Should You Pay for an Extended Auto Warranty

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Auto Warranty in Alabama

Alabama MapMany people in Alabama are asked by the dealer if they want to purchase an auto warranty to protect their new car. Before making the decision to purchase, an individual should understand what an auto warranty entails.

Auto warranties all have different provisions regarding what is covered. Some cover the engine and transmission; others specifically cover electrical components. A buyer needs to read the fine print and know exactly what the auto warranty covers before agreeing to purchase.

If the car is new, it should already come with a factory warranty. These warranties generally cover the vehicle for any repairs that will be necessary within the first 36,000 miles. If the buyer wants to cover the car after the factory coverage expires, they can purchase additional auto warranty coverage at that time. Purchasing additional coverage while the car is still under warranty from the factory may be counter-productive.

An individual needs to also consider whether they are leasing or buying. If the car is leased, they may already be covered in the terms of the lease agreement. Auto warranty experts recommend informing the warranty representatives that the car is leased, and specifically asking them if they have warranties that specifically cover leased vehicles.

If the individual plans on driving the car for several years, there will most likely be some major repairs along the way. These major repairs typically come as the vehicle ages, so may not be necessary until after the warranty has expired. An individual should take into consideration how long he or she plans to drive the vehicle before purchasing an auto warranty.

Although there are many reputable auto warranty companies out there, there are also many that are scams. Before purchasing any auto warranty in Alabama, a buyer should research the companies being considered. Check out ratings with the BBB, and only purchase auto warranties from companies that have a rating of A- or higher. Doing a little homework first will help the buyer obtain the best service for their money.

 

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