Extended Warranty

Yes, we can service your vehicle if you have an extended warranty. We work with most of the extended warranty companies, and we take care of all the details for you. There’s no need to return to the dealer.

If you don’t have an extended warranty and you’re planning to keep your vehicle well beyond its factory warranty period, you may want to consider an extended warranty. An extended warranty can deliver peace of mind while literally saving you thousands of dollars. We see these policies pay off every day for our customers.

Before you buy, here are some words of wisdom:

  • The best time to buy a policy is typically before the factory warranty expires, often around 3 years or 36,000 miles. Vehicles meeting this criteria qualify for a “new car policy,” which offers more extensive coverage at a better price than “used car coverage.”
  • You do not need to buy the service contract when you buy the car. Many companies sell excellent warranties independent of dealerships and car lots. Consumers often buy a policy with their new car because they can roll the cost into the monthly car payment. Otherwise, there is no overwhelming benefit.
  • For the best protection, choose a warranty with “exclusionary” coverage. This is the most common type of policy, and it covers all components except for a few clearly stated exceptions. Conversely, non-exclusionary coverage specifies which components are covered. If a failed part isn’t listed, it isn’t covered.
  • Always purchase a policy that permits you to use the repair facility of your choice when extended warranty work is needed. A few policies require buyers to return to the selling dealership.
  • Some policies limit the amount per hour they will pay for labor. A few pay a maximum of $60 per hour, which is substantially below the per-hour average in Chicagoland. Look for a policy that does not cap the labor costs or for one that pays $100 or more per hour.
  • Choose a service contract that charges one deductible per claim, not per procedure. For example, if you have a $50 deductible per claim and you’re addressing three warranty repairs in one service visit, you will pay $50 for the claim. If your deductible is charged per procedure, you will pay $150.
  • Keep in mind that extended warranties are not designed to cover all repair costs in all situations. For example, diagnostic procedures are not always covered and are rarely covered in their entirety. In the case of a noise caused by a faulty wheel bearing, the warranty company will cover the labor and parts for replacing the wheel bearing. But the company may not cover the time required to diagnose the condition. Even though you can still expect some out-of-pocket costs, they will be minimal compared to paying for the repair on your own.
  • It is smart to perform some due diligence on the underwriting company. Not all of them are solvent, and some consumers have been left without coverage even after paying for it.

Do you need more information or assistance buying an extended warranty? Feel free to tap our collective industry knowledge. We’re here to help!