Find the Best Extended Auto Warranty Companies in Waco, TX

The need for an extended auto warranty in Waco

Waco is planning to treat nearly 11.7 million square feet of street in the Waco Pavement Management Program. Roads under construction can lead to greater wear and tear on your car. An extended auto warranty can help pay for repairs to damaged mechancial systems.

The term extended warranty is somewhat misleading. An extended auto warranty isn’t a warranty in the traditional sense. An extended auto warranty is an insurance policy on your vehicle that covers mechanical and electrical systems for a set period of time or mileage. New and used cars that include a traditional warranty have that price wrapped into the total cost while an extended warranty is an additional cost.

Extended auto warranties come in two types:

1. Original equipment manufacturers (OEMs)

You may be more familiar with the two types of OEM warranties: powertrain and bumper to bumper. An OEM (also called dealership extended warranty) extends what coverage your car had when it was new. OEMs typically have specific requirements for service, including what is covered and where it can be serviced.

2. Aftermarket (third-party) warranties

These warranties are through third-party insurance or warranty companies. They offer similar coverage to OEMs but may have their own rules and requirements, especially when it comes to where your car can get serviced. These warranties are typically cheaper than dealership warranties, but may have higher deductibles and require up-front repair payment through a claim reimbursement process that may take months.

Should I purchase an extended auto warranty?

The median price for an extended auto warranty is $1,200, according to a study by Consumer Reports. Out of those who purchased an extended auto warranty, 45 percent used it for repairs during the lifetime of the policy. Purchasing an extended auto warranty is a gamble—but it does make sense for some vehicles in the long run.

Here are questions you should ask yourself as you consider one:

Does the extended warranty cost outweigh the expected repair costs? Read through the most expensive things your plan covers and research what that would cost if repaired out of pocket. If that cost is larger than your plan per year, you may be better off with a warranty.

What’s the process for claims? Make sure the process is fair and simple, without months between reimbursement or approval.

Is my vehicle already covered? Manufacturers often include their own factory warranties that are longer than extended auto warranties. You may not need additional coverage. In fact, the FTC warns consumers against buying an extended warranty that duplicates coverage by the original warranty.

Do I need to change my mechanic? Some auto body shops won’t work with certain warranty plans. If you’re especially loyal to one mechanic, check with them before you sign a contract.

Have I found the best price available? As with car insurance, you should get quotes from different companies. It’s suggested that you do this before you go to purchase your car so you can compare online policies with those presented by the dealership. You can buy a warranty at any time, including after delivery of the vehicle. Don’t feel obligated to sign a warranty contract at the dealership.