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Why People Are Changing Their Minds About Third-Party Warranties

Why People Are C

With most big purchases, shoppers are offered a warranty, which adds to the cost of the product. Salespeople peddle warranties on anything with mechanical components from a new smartphone to a blender. While the warranty may not be necessary on a smaller, less costly product, such as a toaster, it is worth considering when it comes to your car. Over the years, extended warranties have gained a bad reputation, with some companies refusing to cover repairs or reimburse car owners due to some obscure fine print. Many people have been led to believe that third party extended warranties are a scam. However, with young adults carrying more debt than ever before, and having less in savings, extended warranties are becoming more trusted, with more shoppers opting for coverage. 

Why People Are Changing Their Minds About Third-Party Warranties

People are Driving their Cars Longer

In the past two decades, car manufacturers have begun paying closer attention to quality. Frustrated drivers, sick of being stranded on the side of the road, opted for vehicles that were known for quality, and other car manufacturers had to follow suit to avoid being wiped out by their high-quality competitors. As a result, current models are very reliable and can be driven for a long time. Let’s say that you get a Kia, known to make a reliable automobile. As people put more miles on their cars, certain parts are more likely to break down, which can be expensive. A third party extended warranty is a desirable option to help cover the costs of these repairs, especially if your car is getting up there in age and mileage. You might want to check out Kia extended warranty pricing from olive.

Extended Warranties Are Affordable

One of the most common past complaints about third party extended warranties is that once they are purchased, they are rarely used, meaning that a customer gets nothing for their money. However, these days, third-party extended warranties, like those offered by olive car insurance, are affordable. There are several pricing options as well, so drivers can choose to cover basic parts like the transmission and drive train, paying out of pocket for other parts. For example, Kia extended warranty pricing from olive is very affordable and customizable, letting customers choose the coverage and monthly payment that works best for them. It can save a driver thousands on engine repairs, helping keep the car on the road long past its original warranty. 

There is Increased Transparency

With the internet, it is easier for shoppers to research companies that offer third-party extended warranties. A swift mouse click allows customers to read reviews, check out listings with the Better Business Bureau, and do more research on a company. Companies like olive offer high levels of transparency to their customers. It is easier upfront to read through the warranty to determine what is covered and how to report a claim. Most companies allow customers to handle transactions through an app as well, which makes it easier to access coverage and determine how to fix your car the second it breaks down, rather than having to spend hours on the phone with an operator. 

Extended Warranties May Be More Regulated 

In some states, third-party extended warranty coverage and mechanical breakdown insurance is more highly regulated than the vehicle service contracts offered by dealerships. Such regulation and oversight protect vulnerable customers from paying for a product that they are not able to use. Although this is not the case in all states, it can offer peace of mind to a customer who purchases an extended warranty. The whole purpose of getting the warranty is to alleviate the stress of mechanical breakdowns, and nobody wants to find out the flaws of their coverage while they are trying to use it. Before buying a warranty, check with your state to see how it regulates these companies. 

While it’s possible that some third-party companies will still try to part people with their money without offering a quality product in return, it is easier to do your research and avoid these companies. Many of the current companies offering third party extended warranties are reputable and transparent. It’s true that you may end up buying an extended warranty and never using it, but anyone who plans on keeping their car for at least a year after they pay it off will likely want to consider it. With auto loans extending from the typical five-year range to seven years, it could be possible that you will be driving the same car for a decade. In this time, mechanical breakdowns are more likely to occur. Third-party warranty companies are more trustworthy than ever before and with a little research, you can find one that covers your needs and helps you keep money in your pocket.

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