There are a number of companies online and in person that offer continuing coverage for your car’s needed repairs for when the original coverage expires. You can get this coverage on new cars as well as some used cars, depending on the make and model. Like there are in many areas of business, there are numerous scams for companies offering these services but which do not follow through with the help you need. There are a number of things to check out abut any company before you sign a contract agreement for coverage on your car.
– Always research the company that is offering the service. Avoid new companies that haven’t has the opportunity to prove they are reliable. Check with the Better Business Bureau to see if you can get a report on the company.
– Read the contract entirely before you sign it. If you don’t understand something, ask about it. If they are vague in their answers or don’t seem to want to talk to you, then find another company. Don’t sign until you know everything in your contract and are content with the terms.
– Know what to do when you have a repair before the time comes. Know how they authorize repairs. Some companies will send an adjuster to inspect the car like an insurance company does after an accident while others work with the repair facility. You should also be sure you aren’t expected to pay for the repairs and then send in the bill to be reimbursed. Choose a company that will pay directly to the repair facility.
– Know your deductible and what it applies to. If you have a zero deductible, your coverage will be more expensive but nearly all the costs of repairs should be met. If you have a deductible, then your costs will be lower but you will have to pay the deductible amount before they pay the repair bill. You will also need to understand if the deductible applies to a visit or per repair. If you have a $100 deductible per repair and need several things fixed, it could get expensive!
– Some of this coverage will allow you to take your car to the repair center of your choice while others require you to take it to the original dealer.
– Some companies will require you to follow a specific maintenance schedule to ensure you are taking care of your vehicle to prevent repairs that are due to neglect. Know what your maintenance requirements are.
– You will need to check to see what is covered and what isn’t. If you aren’t sure about what this means, then consider asking a mechanic. Many contracts don’t include coverage for normal wear and tear items and may only offer coverage for problems caused by mechanical breakdown.
– Find out if your mechanic or any of those in local garages have worked with this particular company before. Find out if they have had any problems or if they will agree to work with them.
Don’t choose a company to protect yourself against high repair bills based on the cost alone. You may be getting a deal that is too good to be true!