There are many places to buy a warranty but there are only a few places to buy it at a good price. You can purchase an extended warranty from the manufacturer, the dealer, a warranty company, a warranty broker, or a warranty sales rep.
Manufacturer and dealer warranties are notoriously expensive. You will save money by purchasing direct from the warranty company, a warranty broker, or a warranty sales rep. However there is one catch, manufacturers and warranty companies only offer their own warranties or in the case of dealers, brokers, and sales reps, warranties from companies they represent. Look for a company that handles multiple warranty products from multiple warranty companies.
The insider tip is most dealers try to sell you an extended service contract or extended warranty when you buy a new car and even offer to roll it into the payments. Dealers make a handsome profit on these policies. There is no immediate need to purchase a warranty right then and there. You will qualify for the exact same coverage at any time during the initial term of your basic warranty that comes with the car, and you will definitely find it at a better price elsewhere.
The absolute best price, best service, and best value is purchasing from a warranty broker who handles multiple warranty products from multiple "A" rated warranty companies. You can save up to 60% over a dealer warranty for the exact same policy the dealer is offering.
All of the top warranty brokers can be found online. Do a Yahoo search for "extended warranty" or "auto warranty". The two main things to look for are the makes and models they cover. If they cover just about every make and model you can think of including luxury cars, classics, and exotics, then they represent most of the major warranty companies. Secondly, do they offer to search thousands of policies and warranty providers to find you the best policy for your vehicle.
Other tell tale signs of a good warranty broker are do they offer a money back guarantee, are they listed with the Better Business Bureau and D&B, and are they bonded. This shows that they are serious about what they do and care about their reputation. In the case of bonded, that means the broker purchased special insurance just to protect you.
What to Pay for a Warranty
There are no hard and fast rules. Reputable warranty companies and warranty brokers are in business to make money and they wouldn't be in business for long if you weren't saving money. Do expect to pay a fair price for a fair policy and don't be fooled by a cheap policy that only offers half the coverage for half the price. After all it's all about saving money and peace of mind.
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