Before getting into what to look for in a specific auto warranty company, we must consider why a such vehicle warranties are necessary at all. A simple manufacturing fact is that regardless of how well engineered a vehicle is and how strict quality control is, there is a chance that a faulty part will get through. The faulty part may impossible to spot, for example a drive shaft that somehow developed air bubbles inside during manufacture. Such parts are ticking time bombs that will only make themselves known after regular use. This is the reason warranties exist. Many people consider a vehicle warranty a sort of health insurance for a car. While car dealers generally offer some form of secondary vehicle warranty, there are many reasons to select a third party source.
Most dealers actually use a third party warranty company. They simply act as the middle man and take a profit. The reason this works is simply convenience. Just like the grocery store offers candy bars and gum in the checkout line when you could walk back to the candy aisle and get more for the same price, car dealers count on the fact that a customer immersed in the buying process is more likely to just say ‘yes’ than go shopping for a better deal.
Vehicle warranties from a dealer generally involve a preselected “package” of services covered. Every person is different and these packages do not address a specific buyer’s needs and concerns. Working with the actual warranty originator enables a car buyer to have a custom warranty designed to give him or her specifically peace of mind. Additionally, like an HMO, many dealer bought warranties require all service to be performed at specific locations, sometimes even back at the dealership. The freedom and versatility of being able to choose a service professional you trust in a location that is convenient is an advantage too big for words.
Choosing a Reputable Company
Buying a car warranty from a car dealer eliminates your opportunity to perform due diligence on the company you will be relying on to handle any problems that could occur. Does the company have a history of quickly handling claims? Has the company been the source of consumer complaints? Will the company work harder to avoid paying for repairs than to make customers happy? Buying a vehicle warranty through a dealer answers none of these questions. In fact, you will need to weed through reams of legalize paperwork simply to find the name and contact information for the warranty company.
Investing in vehicle warranties is purchasing peace of mind. Using a third party enables a smart buyer to do business with a solid company with a good track record and actually get better coverage at a lower price than purchasing through the dealer