An after-market warranty is a warranty that becomes effective after the initial manufacturer’s warranty on your car ends. The best time to begin shopping for an after-market warranty is, of course, before your current warranty expires. Typically, you should allow at least one month for the process so that you have plenty of time to evaluate your options. This will allow you to obtain and compare several quotes from different after-market warranty providers.
To find an after-market warranty company, search the Internet. An Internet search will not only turn up individual companies, but also brokers who will offer quotes from many different companies. Several Internet sites for these companies have been approved by the Better Business Bureau – it’s hard to go wrong with these companies. However, keep your guard up – when dealing with brokers, read the fine print to see if the quotes are binding on all companies or if you could be stuck with a higher fee than you expected later on.
Once you’ve found some companies that offer after-market warranties, check up on them with the Better Business Bureau if their websites didn’t have specific information regarding Better Business Bureau approval. This is a critical step. One after-market warranty company is currently involved in a class-action lawsuit filed in response to over 1,000 complaints. Make sure the companies you are getting quotes from are reputable companies by checking for complaints with the Better Business Bureau or in car owner’s forums.
After you have the names of some reputable companies, contact them and ask for documentation regarding what they offer. You’ll probably need to provide them with your name and address, and the year, make, model and mileage of your car. They may also ask about any past accidents, maintenance or repairs. Remember, while you’re evaluating them, they have to determine if you’re an acceptable risk or not.
However, be wary of any company that refuses to provide details about their coverage before you purchase the warranty. Also, steer clear of any company that tries to pressure you into making an immediate purchase or any company that contacts you rather than being contacted by you. These are all classic signs of an unscrupulous company.
Once you’ve identified a few legitimate companies, compare their different offerings carefully. Make sure you understand exactly what will be covered and the conditions you have to meet for coverage. If the conditions you have to meet seem excessive, be wary. Many complaints are made against companies who set up so many conditions that making a claim becomes impossible.
Consider also how the company is treating you during the quote process. Right now, they want your business and are probably giving you the best treatment you can expect. But if they aren’t responsive or providing good customer service at this point, don’t expect them to treat you better later on.
In addition, if you’re buying an after-market warranty to supplement an original warranty which is changing in coverage rather than expiring completely, be aware of where the coverages may overlap. Some companies won’t pay on claims that your first warranty covers – even if only partially – while others may be more flexible in sharing the costs your original warranty doesn’t take care of.
And finally, as with any online purchase, it’s a good idea to use a credit card for your policy so that you can also file a complaint through your credit card company should it become necessary in the future.
