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.

Related Articles – Should I keep my old car or buy a new one?, Paying Too Much For Car Insurance?, My Mom knows Car Rentals!
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.

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About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves


My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Read More About Ted Here

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

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