“Can you cancel an auto extended warranty?” is a common question among car owners, consumers and mechanics alike. This type of warranty can be expensive if you don’t purchase it through a dealership, but it doesn’t have to be. Here are some tips for helping you determine whether or not you can cancel your auto extended warranty coverage.
Auto warranties don’t just stop at purchase. Most dealerships also include some type of extended warranty protection. If you purchase a new car, the dealership typically includes at least factory warranty protection. Many consumers believe this is just fine and carry over to their new vehicle. It’s important to know that this isn’t always the case.
The majority of car dealerships offer standard warranties on new cars. Even if your dealership does not offer an extended warranty, most of them offer extended warranties as part of the financing package when you take out the loan. So, before taking out the loan, make sure you inquire about the warranty that will be offered along with the financing. Even if you only need a few hundred dollars coverage, it’s better to pay for a year rather than for six months coverage. Although you might be tempted to take out the biggest warranty you find, you may end up paying more in the long run if you need to cancel the warranty later and forfeit your deductible.
When you are shopping for an auto extended warranty, it’s important to remember that just because it’s been in place for a while doesn’t mean you can cancel it. Car manufacturers only keep warranty agreements on a year by year basis, so you will need to ask how much longer you’ve got it. If it’s less than half a year, you’re covered; if it’s more than a year, you need to check with your dealer or manufacturer.
When you have questions about the price of your extended car warranty, the answer is really more about the value of your money. Most companies charge a percentage of your policy premium – usually around ten percent – on the value of the warranty. The price will vary, depending on the brand and model of your car and the company that issued the warranty. There are even some companies that will tack on an additional fee for canceling the warranty within a specific time period. You should always ask about this before signing anything or accepting any warranty papers.
When you decide that an auto extended warranty is worth purchasing, you should still keep your options open. You should speak to a few different dealerships to compare policies and prices. Most people don’t like to spend money on a service contract, so it’s important to determine whether the policy will provide service during any potential problems with your vehicle. Also, consider the potential costs of damage claims. For example, if you cause an accident with your vehicle and the other party sues you, then you could be sued for damages.
If you find yourself in an accident and your car needs repairs, you will need to purchase the auto extended warranty to cover the cost of repair or replacement. Depending on the company, you may also need to purchase a new car payment as part of the warranty. Some plans will only cover the cost of the car. Others require you to pay both parts and the entire cost of the car.
The good news is that most car dealerships and many consumer reporting agencies offer a
warranty exchange program that allows you to exchange your current warranty for another plan. This is a good option if you are having trouble making your monthly payments or if you aren’t happy with the coverage of your original warranty. You can simply visit a car dealership or contact the company through the company’s toll free number to find out if this program is available in your state. In most cases, it is. If it is, you can usually cancel your auto extended warranty policy and get started on a new one.
Depending on the company’s policy you should familiarize yourself with the nitty gritty fine print. See what the contract you are signing entails, and make sure you are aware of the terms and agreements. Most companies will allow cancellation within a certain period of time and your own policy may cancel due to reasons such as identity or fraud, non-payment, etc. Mechanical breakdown insurance can be complicated but if you take time to read the contracts it will make it easier to understand the coverages you have.