Auto Warranty

Auto warranty insurance can be purchased at an additional cost when a new car is purchased from a dealer. Car warranty insurance can also be bought from a third party after a car's initial factory warranty period has expired. Whether an owner actually needs coverage or not depends largely on their tolerance for risk as well their budget. Some people think that automobile protection is a big waste of money while others find great peace of mind in having such a policy in place.

Many companies offer various types of coverage and a customer does not need to go through a dealer to purchase it. In fact, most dealers who offer some form of auto warranty insurance go through a third party any way. A consumer can do a simple Internet search to find organizations that offer car insurance in the local area. Many web sites provide forms for instant communication and sometimes telephone numbers for live chats for those who are interested.

Some of the advantages of having policy protection, depending on the type of coverage purchased, includes twenty-four-hour roadside assistance, car rental benefits, and extended towing benefits. A person could end up saving hundreds or even thousands of dollars on costly repairs to a vehicle as a result of good car warranty insurance. This is one of the frequently cited reasons for buying these types of policies. Most people cannot afford to pay a large car repair bill all at once but they do not want to charge such a huge amount to a credit card either. Allotting a few dollars each month toward car warranty insurance, however, seems doable.

The disadvantages include the possibility of overpaying, duplicating coverage that is already part of the policy, and paying for a policy that is not what it seemed to be (and finding out too late). The key to avoiding these disadvantages is to read very carefully the entire auto warranty insurance policy including the fine print. Know the restrictions and the limits for the policy. Compare the current policy to the car warranty insurance policy and look for duplications. If a consumer already has towing insurance, for example, he or she does not need it again through another type. Always read the fine print.

If the policy offers something valuable at a good price, consider buying it. "Boast not thyself of tomorrow; for thou knowest not what a day may bring forth." (Proverbs 27:1) Buying warranty coverage is a personal decision. Some people are extremely uncomfortable with the prospect of paying for possible car repairs out of their own pockets. Other people would rather take the chance that nothing will go wrong with their vehicles than pay for auto warranty insurance. Either way, make sure to read carefully what any auto policy offers so that an informed and wise decision can be made.