Auto Protection Myths
The best place to purchase extended protection is my dealership.
In the extended auto protection business, dealerships are the middleman. They can purchase protection products from other vendors and offer them to you at a higher price. After all, a dealership is essentially a profit center. They may be an excellent source for the automobile itself, but they are not equipped to offer the same selection of protection. And you may need to conduct additional research to be sure that the underwriters who back them have a high rating and history of paying claims. Extended auto protection is just what it sounds like: an extension above and beyond the coverage offered by your dealer. By putting a good protection plan in place, you can protect yourself from the burden of high repair bills.
I can get double coverage for my car by purchasing extended protection right away, before the manufacturer’s protection expires.
Yes, it is less expensive to purchase extended auto protection early in the life of your car. However, extended protection begin after the manufacturer’s protection expires, protecting your vehicle for as long as you own it. Hence, extended auto protection is not double coverage for your car; rather, it is assurance that your protection will not lapse when it outgrows its initial protection coverage. To avoid interruption in coverage, and to get the lowest price, you should purchase an extended protection plan early. The longer you wait, the greater the cost.
Once I purchase extended auto protection, I can stop caring for my car.
You should always do your part to protect your investment. An extended protection plan protects your car against accident or damage, but not from breakdowns resulting from negligent care. Just as your manufacturer’s protection requires that you maintain the condition of your vehicle as recommended in the owner’s manual, any extended auto protection relies on you to keep accurate records and receipts and observe the maintenance schedule. Doing so will ensure your claims are paid easily and that your investment maintains its maximum value.
When I purchase extended auto protection, coverage begins immediately.
You should purchase an auto protection plan that begins when your manufacturer’s protection expires, ensuring that you receive uninterrupted coverage and don’t pay extra for coverage you don’t yet need. When you have selected and purchased the plan that’s right for you, call the underwriter directly within 30 days of purchase. The insurance company is solely responsible for paying claims consistent with the terms and conditions. They can guarantee when your coverage begins, and that your application was received and processed accurately.
After my bumper-to-bumper coverage expires, I don’t need an extended auto protection plan because I still have powertrain coverage.
Powertrain coverage covers a significantly smaller percentage—only about one-fourth —of your car’s components. When your bumper-to-bumper coverage expires, you will be vulnerable to the costs of repair when any of the remaining three-fourths fail. And those parts not covered, such as the suspension, brakes, air conditioning, electrical, seals and gaskets, have a much higher rate of failure. Some powertrain protection plans lose effect under transfer of ownership.
I am covered under my manufacturer’s protection plan, so I don’t need to purchase extended auto protection.
Manufacturer coverage lapses over time, but you can protect your car throughout its life by buying extended auto protection. Extended auto protection is not double coverage; it is an extension of coverage. The earlier you purchase, the less expensive it will be. Many such protection plans can pay for themselves after a single costly repair, and continue to cover you far beyond that. When you buy Extended auto protection that is transferable, you also increase the resale value of your car and make it more attractive to potential buyers. If given the option, wouldn’t you choose a car that came guaranteed against repair costs?
