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Extended Car WarrantyTips & RecommendationsIf you're looking for extended car warranty tips, you're at the right page. If not, check the links on the left hand side or the bottom of the page for other extended car warranty information. "Extended warranties and auto insurance can all be purchased online. Spend some time examining exactly what coverage is available. There is a wide range among different plans. Finally, watch the amount of the deductible." - quote from Better Business Bureau web site. Deductibles onExtended Car Warranty PlansAs with many types of insurance, extended car warranty plans frequently give the consumer a wide range of choices for deductibles. Most people can save money by electing for a higher deductible and lowering their premium. Basically it comes down to simple math, and playing the odds. If it costs $500 to go from a $100 to a $0 deductible, you save money if the car is repaired less then 5 times. back to topTransfering anExtended Car WarrantySome extended car warranty plans allow one owner to transfer a service contract to a new owner when the car is sold. This can be a big help when selling a car, as it tends to add resale value and provide some peace of mind. Be careful when evaluating policies which include the ability to transfer the plan, many require a written letter from the original policy holder and a small processing fee. If you are purchasing a car and transferring a extended warranty from the previous owner, make sure you have a letter from the seller stating that they will you assist in the transfer of the car warranty. Have the policy transferred as soon as possible and avoid possibly headaches in the future when your car needs servicing. back to topCancelling anExtended Car WarrantyMost extended car warranty plans allow an owner to cancel coverage for a partial refund. The terms of such policies vary greatly from one policy to the next and you should read your policy thoroughly for the details. Most allow for a prorated refund of the unused portion of the service agreement. For instance, let's say you bought a 7 year 100,000 mile policy on a used car 1 year old with 10,000 miles. 3 years later, when the car had 60,000 miles, the car was totaled and you wanted to cancel the extended warranty. Chances are, the warranty company would look at the following: The car was 4 years old when you bought it, and it was covered for 7 years, so 3 years or 42% (3/7) of the coverage remained. Considering the mileage, you used 60,000 out of the covered 100,000, so only 40% remained. The company would refund 40% of the original premium less any cancellation fees specified in the original contract. Please keep in mind that this is only an example, based on emails from a reader, of how one company handled the cancellation. As different companies have different policies, read your contract to learn how yours is handled. back to topExtended Car WarrantyRenewalsBefore purchasing an automotive service contract, try calling the warranties service department in order to evaluate their customer service for yourself. Is there a 24 hour number to call? How long does it take you to speak to a real person? Ask some questions about how claims are handled. Does the information the customer service representative gives you match the information on the web site and contract? back to topCustomer Service for anExtended Car WarrantyMost extended car warranty plans can be renewed past the original coverage terms. Be careful though, in most cases it is much cheaper to buy a 6 year plan, than it is to get a 3 year plan and then renew for 3 more. back to top
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