Auto Warranty Tips: Aftermarket Car Warranty
Posted by admin at 14 July 2015, at 11 : 12 AM
Buying a car is one of the most important and exciting events in anyone’s life. Hard earned money goes into the purchase of a car whatever model it may be. However, well you strive to maintain your car, after a year or so, you will have to start spending on repairs and maintenance.
When you purchase your car, you normally receive an original factory warranty from the showroom. This warranty is usually for a period of one year or for a certain mileage. After the stipulated period of mileage expires, you will have to go in for something called an Aftermarket Car Warranty. Aftermarket Car Warranty is therefore a car warranty purchased by you from anyone other than the original factory.
Aftermarket auto warranty plans are designed to protect the consumer from heavy and costly repair bills. Repairs may be minor like just replacing an alternator or filter, your car A/c breakdown, etc., or it may even be something major like an engine failure. You will have to be prepared for any of these eventualities.
These warranties are sold by all the car dealers as well as by third party companies. Though buying these warranties from an authorized car dealer is the safest option, they tend to be very expensive compared to buying from a third party company. Sometimes, these dealers even provide lesser coverage than the companies.
It is a good idea to do a thorough research on the dealers and companies offering Aftermarket Automobile Warranties before going in for your purchase. There are a number of rating publications you can refer to. You can also compare the rates, services offered, etc. before making your decision. It is always safe to go in for an A+ rated company.
One major disadvantage of purchasing your Aftermarket Car Warranty from a third party company is there are chances the company can go out of business. In such a case, you will be sure to lose your warranty. If you look at it from this perspective, it is safer to approach a dealer where chances of this happening are very remote, even though they are expensive.
There is an option for purchasing an Aftermarket Car Warranty from the various companies listed on the internet. There are a number of companies selling these warranties online. Almost all of them offer you similar services. When you are looking to purchase your warranty online, the most important thing to look for in a company is whether they use direct-write insurer or whether they are insured by the RRG which is the Risk Retention Group. It is advisable to go in for companies with direct-write insurer as this will be your safest move.
After purchasing your Aftermarket Car Warranty from a genuine dealer, third party company or an online company, when the need arises, you will have to take your car either to your dealer or your auto repair shop depending on the facility you have opted for. The dealer or the repair shop will then contact your extended warranty company for authorization before proceeding with the necessary repairs.
Popular companies usually pay directly to the repair facility while some of the others ask the consumer to pay the repair bill and claim reimbursement.