Unless you’ve been living under a rock, you’ve probably heard all sorts of opinions regarding extended auto warranties. Some say they are just as important as the average medical insurance plan, while others say they’re nothing more than a waste of money. So who is correct? As with many things in life, it all depends on who you’re asking.

Who doesn’t need one?

Some people do not need extended auto warranties. If you are a wealthy individual who lives without the fear of untimely breakdowns that result in thousands of dollars in repair bills, you fit this category. Likewise, if you own the one model of vehicle that has never broken down in the history of its existence, you can afford to go without coverage. If, on the other hand, you’re like the millions of Americans who live in the real world, you need a reliable extended service contract.

Finding the right plan

Almost every driver needs a quality service plan; however, many have trouble choosing the best one. For access to a long list of affordable extended auto warranties you can trust, work with CARCHEX. The Better Business Bureau has awarded CARCHEX with an A+ rating. Why? Because it has taken a good, long look at our business practices and likes what it sees. When you partner with CARCHEX, you’ll enjoy quality guidance and customer support that will help you choose the best car warranty for your given situation.

Have you ever been forced to borrow money or go without a ride, because an unexpected vehicle break down left you with a huge, unmanageable bill? If so, you’re not alone. Each year, millions of Americans are forced to hitch rides or rely on public transportation, because they weren’t prepared to pay for costly auto repairs. Still others are forced into debt thanks to untimely service fees that exceed the amount of money they have saved. If you’ve been in this type of situation, you know just how frustrating it can be. Fortunately, you can prevent a recurrence by securing an extended car warranty.

Getting a good plan

A reliable extended car warranty is an absolute lifesaver when unexpected mechanical and electrical problems might otherwise leave drivers stranded or broke. Unfortunately, not every single service plan is what you might call “reliable.” Some plans come with sneaky contracts that contain confusing legal language meant to deprive consumers of the coverage they paid for.

To get an iron-clad extended car warranty plan that won’t include contractual technicalities, you need to partner with a third-party warranty company, such as CARCHEX.

CARCHEX doesn’t just provide its clients with the best available car warranty options; it is committed to offering the best, most courteous customer service in the entire auto industry. If you like to gamble; try selecting an auto warranty on your own. On the other hand, if you want a quality service plan that won’t let you down; partner with CARCHEX.

The best auto warranties offer drivers a sense of confidence that they will not be held accountable for expensive repair bills that tend to occur without much warning. That said, in some situations, claims can be denied, thanks to minor technicalities and/or downright dishonesty.

All too often, consumers don’t know if their service plan provider has the legal right to refuse coverage. Is the provider allowed to refuse coverage if the driver chooses to have his or her vehicle fixed by an unapproved mechanic? What if the repair shop uses aftermarket parts? If you don’t do a good job maintaining your vehicle, will you sacrifice coverage? If you can’t answer these questions; you need the experts at CARCHEX.

Getting help

The type of language you’ll find in your standard service contract is somewhat confusing. If your warranty company says no to your repair claim, you probably won’t know if it is playing fair.

Getting a car warranty plan is about more than saving money; it’s about allying yourself with a company you can trust. Instead of going it alone, put your faith in the experts at CARCHEX. We let our customers compare auto warranties. Additionally, if they are ever denied coverage, CARCHEX will work on its client’s behalf to find out if something is amiss.

The Internet is glutted with all sorts of car warranty information. Unfortunately, not all of it is valid. To get a better idea of what’s true and what’s not, let’s take a look at a couple of the biggest myths associated with automotive service plans:

Myth 1: You have to buy your warranty from the dealer

Dealers love to push their warranty plans on customers, because they can add the cost to the total amount of the financing plan. While this helps to generate an even bigger commission, it’s typically a bad deal for the buyer. Because the cost of the warranty is spread across the life of the loan, it usually proves costlier due to added interest. When you buy from an independent, third-party provider, such as CARCHEX.com, you will save money, because you are able to bypass expensive interest charges.

Myth 2: Comparable warranties usually cost the same

Service plan costs can vary widely based on the specific provider you choose. What’s more, although one auto warranty may seem comparable to another, there could be big differences within the fine print. Most consumers don’t have the time or the inclination to pour over complex legal contractual language looking for basic car warranty information, and many benefit greatly from delegating the task to a trusted third-party provider, such as CARCHEX.com. If you choose the latter strategy, be sure to put your faith in a provider that has credentials that prove it is reliable and trustworthy. CARCHEX has earned an A+ rating from the Better Business Bureau. Don’t trust another provider unless they can say the same.

Dodge manufactures quality vehicles that hold up comparatively well in most instances. Unfortunately, like most every type of vehicle, Dodge cars and trucks do break down from time to time. Unless you can afford to pay thousands of dollars in potential repair fees, you should strongly consider getting a Dodge extended warranty to help offset expensive service charges.

Whether you drive a Ram, Dakota, Durango or Charger, you’re likely to incur pricey repair costs at some point in time. To insure against unmanageable repair fees, Dodge offers a standard manufacturer’s warranty that pays for non-maintenance related items. Unfortunately, this service plan does not provide coverage throughout the life of the vehicle; and when it expires, drivers are forced to pay for repairs using their own money.

Extending your coverage

A Dodge extended warranty can save you a bundle when your vehicle fails; however, if you choose the wrong plan, you may still be liable for a good portion of repair fees. Most service plans cover non-maintenance type repairs, but some refuse to pay for important diagnostic tests required to determine specific problems.

To get the best possible warranty option at a fair price, utilize CARCHEX.com as your trusted source for quality, affordable car warranty plans. CARCHEX is a well-regarded, reputable warranty service with an A+ rating from the Better Business Bureau. Don’t waste your energy trying to compare confusing warranty plans; trust the experts at CARCHEX to help guide you through the selection process.

Vehicle extended warranties are ideal for people on fixed budgets who can’t afford to be surprised by pricey repair costs. If you fit this description and are planning to keep your vehicle after the original manufacturer’s warranty expires, an extended service warranty may be right for you.

While most every service plan provides coverage for parts, labor and sales taxes related to the repair of non-maintenance items, others offer all sorts of additional benefits that can put car owners at ease. Before you settle on the first available warranty you see, consider the following.

Additional warranty benefits

Extended service plans act as safeguards against unforeseen vehicle repairs; however, they can do more than that. Many vehicle extended warranties are transferable. This means if you choose to sell your vehicle, you’ll be passing on a valuable extended service plan, which often increases the resale value and allows you to increase your asking price. A reliable service plan also tends to put buyers at ease, because they know the used car will be insured against potential mechanical problems.

In addition to providing resale benefits, many warranties offer other perks, such as lost-key and lockout services, car rental discounts, and towing and trip-interruption benefits that defray expenses if your car breaks down someplace far from home.

Choosing a plan 

Not all car warranty plans provide thorough, all-encompassing coverage. To ensure that you’re aware of every available warranty option, consult a neutral, third-party provider, such as CARCHEX.com. We provide car owners with everything they need to clear the confusion surrounding automotive service plans, and our knowledgeable agents have a strong reputation for ensuring customer satisfaction.

Most Honda owners are happy with their cars; however, like all vehicles, they sometimes breakdown. Honda offers their customers a base manufacturer’s warranty that pays for select items, as long as the owner performs required maintenance and chooses specific service stations outlined in the agreement. Unfortunately, a Honda car warranty doesn’t last forever, and when coverage expires, owners are left to foot the bill when the inevitable mechanical problem occurs.

What can you do? 

If your factory service plan is nearing its end, you should consider securing an extended warranty that will reinstate coverage and provide additional benefits. Extended plans are great for people who simply cannot afford to cope with big repair bills that often come without warning. Many plans also provide additional benefits, such as lockout and/or lost key help and automobile rental discounts. A transferable extended warranty can also increase the resale value of your Honda, because it goes along with the car once it’s sold.

Getting the best warranty 

Not every Honda car warranty is created equal. Some cover most every type of breakdown as long as it’s not considered maintenance-related. On the other hand, some do not cover particular diagnostic tests, and others place restrictions on where you can have your vehicle serviced. To ensure that you’re aware of the best warranty options, consult the honest, reliable car warranty experts at CARCHEX.com.

How much do you know about your automotive warranty and your insurance? Find out who covers what in this quick little quiz.

How much do you know about your automotive warranty and your insurance? Are you clear on who covers what? Do you know of any gray areas? Let’s test your coverage savvy with 3 situations you are likely to encounter at some point if you keep your car for very long.

Auto Warranty vs. Insurance—Situation 1

You get in your car and turn the key to start it. You hear a clicking noise, but you do not hear the engine turn over. The lights work and everything seems fine, but the engine simply will not crank.

Vehicle Warranty vs. Insurance—Situation 2

You are driving down the road, and your car starts to overheat. Your car is brand new and fresh from a fluid change, so there is no reason to believe that it’s the thermostat. You turn on your hazard lights and begin to pull over to the side of the road. As you move onto the shoulder, a speeding car in the right lane clips your driver’s side tail light.

Car Warranties vs. Insurance—Situation 3

A driver in front of you slows down suddenly. You hit your brakes to avoid a collision, but they fail and you hit their car in the rear end. After the police get their reports, it was decided that you were at fault and you get ticketed.

Automobile Warranty vs. Insurance—Situation 4

You are driving late at night on a country road. Suddenly a deer steps out in front of you. You try to miss it, but you hit it hard. Your front end is smashed, your windshield is broken, and who knows what all is broken in your engine compartment. All you know is that your car is not going anywhere.

Situation 1 is a pretty straightforward car warranty issue. All of these signs indicate that your starter has failed. This is a pretty common problem for most car owners whose cars are older than 5 years.

Situation 2 is a situation where both the warranty and insurance company come into play. There are a number of reasons why your cooling system has failed, from a faulty water pump to an improper coolant change. It occasionally happens that mechanics forget to refill the radiator or don’t completely tighten the plug. Some cars use a specialty coolant, and other coolants can ruin the cooling system. Incidentally, if your car is brand new, you probably did not need a coolant change anyway. The other driver’s insurance company is responsible for the damage from the impact.

Situation 3, while an example of how things can work out unfairly, is a complex issue. Technically speaking, the warranty provider and the insurance both come into play, but more often than not, the insurance will simply cover everything. On the upside, during the course of your car’s repair, your failed brake plea will be proven, your insurance will most likely charge their insurance, and you will be cleared of the traffic violation.

Situation 4 is a clear-cut insurance claim. The only way your automotive warranty company would get involved is if it was from some component failure (such as your brakes) that caused you to hit the deer. As in Situation 3, your insurance company would probably cover it anyway to keep things simple.

The Specialty Equipment Market Association (SEMA) is requesting that the FTC add requirements in car warranty information explaining denials. At this point, no warranty provider, manufacturer or otherwise, is required to explain to their customers why they refuse any given claim.

In two recent Consumer Alerts from the Federal Trade Commission, it was made clear that warranty providers cannot deny a claim because a consumer chooses aftermarket or recycled parts to replace damaged components. The Specialty Equipment Market Association (SEMA) is requesting that the FTC add requirements in car warranty information explaining denials. At this point, no warranty provider, manufacturer or otherwise, is required to explain to their customers why they refuse any given claim.

The two Consumer Alerts that relate to this issue are dated respectively in December 2010 and July of 2011. The first says clearly that warrantors cannot deny a claim for use of aftermarket or “generic” parts. The second gives recycled parts the same treatment. Neither these alerts nor the Magnuson-Moss Warranty Act have a clear means to enforce these alerts.

Why Auto Warranty Denial Reports Are Important

According to SEMA, an auto warranty provider is obligated by law to test and prove that an aftermarket part is the cause of the problem in order to deny a claim. The issue is that they are under no obligation to tell the consumer what they discovered. This provides consumers with a distinct disadvantage in the claims process.

Without such a provision in place, along with explanations of how this would void a car warranty, the consumer could either blindly accept what could be an illegitimate denial or illegitimately seek dispute mediation or legal processes. It would save a great deal of time and money for both parties in the long run.

Car Warranties, Specialty Parts and Modifications

Of course, much of SEMA’s motivation involves coverage of installing specialty parts. According to the Magnuson-Moss Act, specialty components should be covered. The Consumer Alerts of December 2010 and July 2011 do not address this. Along with the accountability factor for aftermarket and recycled parts, SEMA wants assurance that specialty parts are addressed as well.

An additional benefit is the question of “modifications.” What a modification entails is often a matter of debate. There can be no doubt that adding nitrous tanks or tweaking the throttle position are modifications, but what about a strip of electrical tape to block a short on an alternator wire long enough to get the car in the shop? Without being required to explain a denial in full detail, a dealership can easily call this a modification and deny your warranty claim.

Complete disclosure of car warranty information before a claim is not only standard practice, but required by law. It only makes sense to extend this transparency to the results of a warranty claim, whether approved or denied.

You may have been offered a choice between an extended auto warranty and a lifetime warranty by a car dealer when you purchased your car. The dealer may have confused the differences between the two, and perhaps laid most of his pressure on the lifetime warranty. What you need to know is the difference between the two.

You may have been offered a choice between an extended auto warranty and a lifetime warranty by a car dealer when you purchased your car. The dealer may have confused the differences between the two, and perhaps laid most of his pressure on the lifetime warranty. What you need to know is the difference between the two.

Establishing the Baseline—What is an Auto Warranty?

When you buy a new car, it comes with a car warranty from the manufacturer, which is a guarantee (more accurately, an assurance) that if any of the parts covered in the warranty fail, they will replace it and repair the damage. That is, assuming you meet certain criteria, such as keeping the car maintained according to the factory specifications, if the repair is performed at a dealership and if you use the manufacturer’s parts, aka OEM parts.

When you buy a used car, assuming that it is Certified Pre-Owned (CPO), some manufacturers will provide specific extended warranties for some of these vehicles. The specifics vary from manufacturer to manufacturer, and they can range from providing limited Bumper to Bumper coverage to just covering the Power Train. Extended warranties are also available from dealerships and third-party providers.

Now, What is a Lifetime Warranty?

A lifetime warranty is much harder to describe than extended warranties and standard warranties. The main qualities are that the conditions and benefits are defined by the dealership, they are usually non-transferable, and all work has to be done at that specific dealership, or if the work needs to be done at a different location, the dealership has to approve it to be covered. Also, the word, “lifetime,” suggests that your vehicle is covered for the entire duration of its drivability, but there have been some cases where “lifetime” means only 100K miles. In short, you may never know what you are getting.

Dealerships have much more leeway when writing lifetime policies than they do extended warranties. If you are thinking about getting a lifetime warranty, it may not be just enough for you to carefully read the policy over before you sign up for it. Unless you are well-versed in legalese, you may want to have a lawyer look the policy over first. Better yet, it is probably for the best to just pass it over and shop around first. This goes for their extended warranties as well.

The Beauty of CARCHEX Car Warranties

Compared to the boiler room experience of dealing with a car salesman trying to push an warranty policy on you, shopping at CARCHEX is pure zen. Outside of the dealerships, so-called lifetime warranties are pretty universally discouraged, but an extended warranty is encouraged by manufacturers, car dealerships and third-parties alike are encouraged, and the sooner you buy it, the better.

So, if you have a manufacturer’s warranty, why should you get an extended auto warranty as well? First of all, you will lock into a lower price for your coverage. Secondly, a warranty from CARCHEX covers many situations that manufacturer warranties will not.