• Karolena

Extended Warranties - Know What You're Paying For!

Extended warranties can be excellent for peace of mind, but knowing what you are paying for when you sign up is extremely important. All companies need to give you something (in writing) that contains the fine print of what items they cover and do not cover.

Many extended warranty companies have different plans. If you see an advertisement on TV and then sign up, make sure you're signing up for the program you want. A client recently signed up for a tier below what she saw on TV, so she was shocked when an item was not covered.

I do not use extended warranty companies. Instead, each month I set a little money aside for any car things that may come up. This practice is nice because I use those funds for little aftermarket gadgets and upgrades or to cover minor annoyances with an older vehicle. The Ford emblem is fading out, no problem. Weather seal around the side mirror pealing, no problem.

The majority of extended warranty companies do not cover items that have failed due to lack of maintenance. So do keep in mind, even though you are paying for the extended warranty, you are still responsible for the vehicle maintenance.

Take away;

  • Extended warranties can be great, but always get a copy of the fine print and understand what they cover.

  • You still need to perform vehicle maintenance. Maintenance items and vehicular failures caused by lack of care are generally NOT covered.

  • Set aside money each month for your vehicle.

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