Buying Aftermarket Car Warranty
Long time reader, first time poster.
Currently dealing with a nightmarish situation at the dealership I work for. Just felt obligated to try and help anyone who’s thinking about buying an aftermarket/3rd party car warranty. First of all, don’t. Just don’t.
But if you insist on doing so, at least do the following:
1. Select an aftermarket insurance company you think you’re gonna like (you won’t)
2. Call the authorized dealership that you want to work with and simply ask them if they work with the 3rd party insurance company you’ve selected.
3. If they say yes, then have that dealership put it in writing.
4. If they say no, ask them if they have a 3rd party insurance company that they do work with.
5. If yes, then have them put that in writing before you buy the insurance.
That is the closest you will ever get to having a warranty when your car is out of warranty.
I will go a step further and also say this. Again, i almost feel guilty for helping someone buy an aftermarket warranty which is why I keep repeating myself in saying I really advise against it, but if you seriously feel you absolutely have to waste your money on an aftermarket car warranty, please make sure you ask the following questions.
1. What EXACTLY, is NOT covered under the warranty you offer? What reasons would a claim be denied? Is there a list of every single component that is and is not covered? Get it in writing.
2. What EXACTLY do you need from the dealership in order to actually pay out a warranty claim. Do you need them to send you screenshots of wiring diagrams and screenshots of the factory labor times from the book?
3. If they say no, have them put that in writing.
4. If they say yes, we need that. Then call the dealership you want to work with and ask them if they are allowed to send that information to random people in an office somewhere who started a random aftermarket warranty company one day, who have absolutely zero affiliation with the manufacturer.
5. If they say yes, we are allowed to send the factory labor times to them, have them put that in writing.
6. If they say no, we can’t send them that. Call back the warranty company and ask them if they still pay out warranty claims without knowing if they are being billed correctly for a claim.
That is the absolute only way you should be buying an aftermarket car warranty. Which again, you should not be doing. You will be a lot happier just donating $5,000-$7,000 to charity or child’s cancer research or the homeless or like, a million other things. It will bring you significantly more joy in your life than buying an aftermarket car warranty.
But if you absolutely must, that’s how I would do it. Which again, I wouldn’t do.
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