The 5 Must Haves when buying extended warranty coverage for your car

Saving your family money has become both an art form and a science.  For many of us, it is full time job, often on top of several other jobs.

That brand new SUV that you have been eyeing may need to wait a few months until the economy shakes out.  One way that you can protect yourself from budget-busting repair expenses is by purchasing an extended warranty on a great used vehicle.

But how do you tell the good guys from the not-so-good guys?  Here are things to look for when considering a contract:

Must have #1:  A physical address

You’re considering spending $1000 – $2000 or more with a company that won’t tell you where they are located?   This one is so basic it shouldn’t need to be here, but it will weed out 80-90% of website companies.  When you do get the address, Google it.  If they’re stable and legitimate, the address should bring up the company name.  At EasyCare, an industry leader headquartered here in Georgia, we Googled one company and found out that the address was actually a florist.

Must have #2: A Better Business Bureau Ranking

Any reputable Extended Warranty provider will at least have a rating, preferably an A or B. A high ranking from the Better Business Bureau is far more telling than “testimonials” or other “marketing” materials on the internet – these can be manipulated by the companies.  For example, EasyCare has an A+ rating from the BBB and has won Torch awards for service.  That says a lot about their performance with consumers.

Must have #3:  100% Money Back Guarantee on your Auto Warranty

If you are unhappy with your auto warranty, have not made any claims, they should refund 100% before 30 or 60 days.

Must have #4 Transferability

Some auto warranties end when you sell your car, so make sure that you are purchasing a transferable extended auto warranty. This feature can help you sell your car and get you a better asking price when that time comes.

Must have #5:   See your sample contract

You should be able to see YOUR contract before you commit to buy it, reflecting the specific coverage quoted to YOU. A red flag that you’re dealing with an unscrupulous company is their trying to trick you by sending an aggregated copy of different levels of coverage. Ask for the policy booklet.  If the salesman says it will come in the mail after you pay for it, find another company to deal with.

You want to keep your vehicle longer, but also drive it safely and stay current with repairs too. Purchasing an extended warranty for your car can save you from budget-busting expensive repairs bills and provide peace of mind.

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oXYGen Financial Insurance Agency is a client focused, full service, independent fixed insurance agency

Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®

Co-CEO and Founder oXYGen Financial, Inc.

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oXYGen Financial, Inc. co-CEO Ted Jenkin  is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation.  .    Unless sources are noted, the information is the opinion of the author.

TED JENKIN IS SECURITIES LICENSED THROUGH INVESTACORP, INC. A REGISTERED BROKER/DEALER MEMBER FINRA, SIPC.  ADVISORY SERVICES OFFERED THROUGH INVESTACORP ADVISORY SERVICES, INC. A SEC REGISTERED INVESTMENT ADVISORY FIRM. Linked sites are strictly provided as a courtesy. Investacorp, Inc., and its affiliates, do not guarantee, approve nor endorse the information or products available at these sites nor do links indicate any association with or endorsement of the linked sites by Investacorp, Inc. and its affiliates.

About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin has spent the past 23 years giving personal financial advice to thousands of people across the United States. After graduating from Boston College in 1991, Ted spent more than 16 years working for American Express Financial Advisors/Ameriprise Financial. He was one of the youngest people in the history of the company to reach both Field Vice President and Group Vice President level. He managed more than 800 financial advisors throughout 8 states in his last position with the company. In 2008, Ted founded oXYGen Financial to help revolutionize the financial services industry by creating a new company that focused on serving the X and Y Generation. oXYGen Financial now has more than 2,200 clients throughout 25 states across the country many coming from social media techniques. Ted has been featured in over 30 magazines and newspapers including the Wall Street Journal, Business Week, and The Huffington Post. He was on the cover of Registered Rep magazine and featured in the ‘what will financial planning look like in 2023’ article done by Financial Planning Magazine. He has six advanced designations from the College for Financial Planning (CFP®, CRPC®, CRPS®, AWMA®, AAMS®, CMFC®) and is an on air radio personality.

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