Posted on May 10th, 2009 in Autos Coverage
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Purchasing an auto service warranty can be a little tricky, since there are a lot of things to consider. Buying an auto service warranty from a private dealership or even an online service provider needs to be carefully thought through and you should look over every aspect of it. This is mainly because there are more and more scams and other illegalities that need to be considered. An auto service warranty basically is a service that covers your car's breakdowns and other failures in case they occur. Until the contract is legal and binding, the service provider has the responsibility to cover the damages. Usually when you buy a new car, the warranty comes with the purchase, but sometimes the areas that are covered in these sorts of warranties are not enough, and you can always buy a service warranty from another private service provider. There is always an option of an extended auto service warranty that you can purchase, and this is covered for a longer period of time. For example, when you purchase a car, the car dealership can give you the option for an auto service warranty, covering three years of the car's services, failures in parts, and breakdowns, or it could be for the first 36,000 miles. But then after that, the warranty expires. This is where extended auto service warranty comes in, you could either purchase it after the three years (or 36,000 miles, whichever comes first), or you could have the service extended right when you purchase the car. Here are a few tips on purchasing extended auto service warranties. These are just a few things that you need to consider and be careful about.
1. Companies that are new in the auto service business, should usually not be considered as your service providers. This is because, if they go out of business, then you will end up paying for the repairs of your car.
2. If a dealership claims that if you buy the warranty, and then only will your financing be approved, is a scam. Be alert!
3. When you are purchasing your car, and the car salesman is after you to buy the extended warranty right then because you might not be able to buy it later, is just pulling a scam on you.
4. Your personal information should be kept private for as long as possible. Never give out your Social Security numbers, credit card numbers, or bank-account details over the phone. The only time that you should give them out over the phone is when you are absolutely sure who you are talking to, and when you know that the company is worth trusting.
5. Never make any sort of payment before you sign the contract and see all the terms.
6. Senior citizens are targeted the most, since they can easily be pressured into a scam. So be particularly careful if you are a senior citizen.
7. Make sure to include in your contract that you can take your car to any shop that is Automotive Service Excellence (ASE) certified. This way, you can be protected wherever you go, when you are travelling.
8. If you become a victim of a scam, then file a report with the Better Business Bureau, or the Federal Trade Commission, as soon as you can.
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