Why Should I Buy An Extended Warranty Now? I Still Have Factory Warranty Remaining.
A common misconception is that by waiting to purchase extended coverage, you will get coverage for a longer time. Much like life insurance costs rise as we age, the cost for a car warranty will rise as the vehicle ages and accrues mileage. You will be offered the longest terms and the lowest rates for newer vehicles with lower mileage.
We understand that you may have a warranty from the manufacturer. Our coverage is simply an extension of that, not double coverage. The manufacturer’s warranty has been factored into your price quote. The more factory warranty you have remaining, the lower the cost and greater the length of the warranty extension. In other words, you are paying for tomorrow’s coverage at today’s rates. In addition, our Roadside Assistance benefit, with $100 towing limits may prove to be invaluable during the Manufacturer’s Warranty period.
FACT: The newer your vehicle, the lower the rates for extended coverage.
Please click the link below to view a chart that illustrates this:
http://www.warrantydirect.com/when_to_buy_your_coverage.asp
Waiting may also carry other risks. Coverage costs rise as repair rates do. Labor rates have been steadily rising over the past few years. It is not uncommon for a repair facility to charge $100 or more per labor hour. As more repair data becomes available for your vehicle, its costs may also rise. These factors can cause the rates for your vehicle to rise should you elect to delay purchasing coverage.
About Warranty Direct
Founded in 1980, Warranty Direct is the direct-to-consumer division of one of North America’s leading providers of service contracts and extended warranties for automobiles. Through its automobile extended warranty portals, www.warrantydirect.com, www.carwarranty.com, www.warrantyinfo.com and www.warrantydirect.ca , Warranty Direct leads the industry in efficient and expedited claims handling, impeccable customer service and a technology infrastructure that far surpasses the industry standard.
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Filed under: Extended Car Warranty Coverage, Q&A - Auto Warranties
This is very interesting. I had no idea this was the case. I have been putting off buying an extended car warranty for a long time for this very reason. Thanks for the info!