Q: I have a 2001 Buick LeSabre with 89,200 miles on it, and I would like to know if a 3- year auto warranty is best as I would like to keep the car for that long. Could you please advise me on a company that could give me a reasonable price and good options, possibly thru the internet or locally. Thank you for all your help.
A: Rather than recommend particular companies, it’s probably best to discuss what you should be looking for in any warranty to help you make a decision on where to buy, and the best value for your money. There are many good auto warranties but as with anything, there are definitely bad ones. What you should look for is how long the warranty company has been in business and are they backed by a reputable parent company. The price and coverage are also a big factor. Some warranties will only cover the main power train components i.e. engine, transmission or differential. We have found that these are not often common vehicle failures, however.
Additionally, consumers should be aware of the cost of the policy versus the value of the vehicle. We’ve seen policies that cost the driver $3,500 dollars when the book value of the vehicle was between $4,500-6,000. Most companies will want a complete vehicle inspection and will not cover any existing problems and many companies will only pay out a certain percentage of what the vehicle is worth. We have run into this situation twice in just the past month and, claims were denied due to cost of repairs versus value of the vehicle.
Extended warranties can be purchased online. Spend some time examining exactly what coverage is available. There is a wide range among different plans for you to review and choose from based on your needs, car and budget.