When you buy a new car, you probably expect it to last for many years. That’s why so many people invest in extended warranties. However, the vast majority of people never actually activate their extended warranties. In fact, only about 25% of new car owners actually use their extended coverage. Here are five common reasons why people don’t activate their warranties and why they shouldn’t make that mistake with yours.
You don’t need it.
Extended car warranties provide many valuable benefits, such as covering the cost of repairs in the event of a breakdown, helping you get out of a contract with a dealer if they break a promise and providing roadside assistance. However, many people simply don’t think they need it. For example, car dealers often make it difficult for buyers to get out of their contracts without paying a large termination fee. Extended warranties provide protection against that.However, you also need to consider the cost. Extended car warranties typically cost between $500 and $1,000 per year. Some also include roadside assistance.
The coverage is too limited.
Many extended car warranty providers offer a variety of coverage options, including different mileage limits and what happens if you drive outside of a certain region, such as a snowstorm. The problem is that many people don’t take advantage of these additional options. For example, if your car is driven 10,000 miles per year, the coverage might be adequate. But if you drive it only 5,000 miles per year, the coverage could be very limited.In some cases, the coverage might be so limited that it’s basically worthless. For example, if you don’t drive very often, but happen to drive a long distance across several states once a year, the coverage might not be worth anything.
You don’t know how to activate it.
Many extended car warranty providers require you to activate the coverage by taking an online or telephone survey. This can be confusing for many people. Some don’t know what they’re being asked or how to respond. Others mistakenly think that the survey will activate the coverage.In fact, it won’t. The coverage is activated when you actually file a claim. That’s why it’s important to file the claim as soon as possible after the incident occurs. If you wait too long, you may not be able to activate the coverage.
You don’t have your car repaired properly.
Some people don’t activate their warranties because they assume they’ll be able to file their claim online and everything will be taken care of quickly and easily. However, many extended warranty providers require you to take your car to a certified mechanic. If you take it to a non-certified mechanic, the claim might get rejected.In fact, extended warranty providers often require you to take your car to a certified mechanic to ensure the claim is handled properly. Certified mechanics understand the coverage, know when to file the claim and have the proper tools to do the job correctly.
Extended car warranties are a great investment. They can help you avoid unexpected repairs and save you thousands of dollars in repair costs. However, many people don’t activate their warranties because they don’t know what they’re missing or how to activate them.By reading this article, you now know the five most common reasons why people don’t activate their warranties and why they shouldn’t make that mistake with yours.