Like buying any commodity, buying car warranty insurance also involves some shopping. You have already spent quite a good sum of money to buy the BMW and it is quite logical that you want to get it covered by car warranty insurance after the manufacturer’s warranty has expired. You are aware of the benefits of extended warranty, another name of car warranty insurance and would like to make sure that you enjoy the same level of confidence in driving your car as you had enjoyed during the tenure of the manufacturer’s warranty. The first stop for buying car warranty insurance could be the dealer from whom you brought the vehicle. Dealerships are much interested in the business of extended warranty as it is very lucrative for them. But whether to buy from the dealer who sold the car or from some other dealer can be decided after you have done some shopping.
It makes sense to shop around
There is intense competition in the market and shopping around for car warranty insurance can give you price advantage besides striking a deal that ensures better coverage. There are several companies that sell car warranty insurance, a list of which can be gathered from the internet. You can also ask your friends and acquaintances for names that they are familiar with and have experienced the services. Make a short list of offers that you collect and talk to the companies to gather complete information about their offers so that you can make a fair comparison. Going through each and every detail of the offer with special emphasis on the exclusions is the best way to judge the rationale of the price that is quoted. It also makes easy to compare apples with apples instead of making a price driven comparison that can be misleading.
Reimbursement or free repairs
Some car warranty insurance companies might ask you to spend upfront for repairs and then seek reimbursement. There are others, who might have dedicated service centers for undertaking repairs free of cost within the scope of the insurance. Often repairs are not fully covered and there might be some deductibles that you have to be aware of.
What more you should look for?
On the face of it, the coverage details and the price are the driving factors in selecting a company that sells car warranty insurance. But there is more to it. And perhaps these are no less important. Third party warranties available from dealers have to be scrutinised closely to evaluate the track record of the service provider. The warranty that you buy should be backed by the manufacturer to enhance its worth. Another aspect that has to be carefully examined is that the company selling the car warranty insurance acts as the administrator so that you do not have to deal with some other parties to avail the service. The insurance seller becomes the service provider.
At the end, know about your purchasing and cancellation rights from the warranty providers as they are legally bound to disclose it.