Extended warranty companies

How do I know what warranty companies are good or bad.  Unfortunately that is often hard to know, I have been in this business now going on 11 years, and have seen both sides of the warranty issues.  Some things I look for

  • Deductible
  • Time period
  • Reputation

Deductible, I think y0u should always have a zero deductible policy, if at all possible.  Even a small deductible of $100.00 can quickly become costly when you realize that deductible will be charged on any extra repair.  Say when you broke your waterpump you also damage 4 or 5 other items.  Most times you will be charged $100 for each additional repaired item.  Make sure they have a zero deductible warranty, and it should not cost much more money.

Time Period, the lowest time I have seen is 12 to 24 months, for many of the short term warranties they have caps for maximum they will spend on total repairs….no time to find out they only pay up to $2.000 when the bill hits $4,000.  Look for dollar caps on repairs, not a good thing when getting a warranty.

Reputation, this is possibly the hardest to pin down.  You can call the State’s attorney general and see if a certain company has had complaints filed against them, possibly try the better business bureau, but still hard to know for sure…nowdays you can probably check online.  For my own experiences, I have found most of the warranty companies that work with credit unions, tend to be more reliable.  Credit Unions for the most part actually care about their members, and if they are having issues with a company that is harmfully impacting their members, they will either drop kick the company or get the issues resolved.  Pure and simple, so if in doubt, check with your credit union and see what extended warranty program they have.

Many Credit Unions will sell you their warranty even if you obtained financing somewhere else…

Comments are closed.