Niagara Gazette — Some companies offer tiered coverage depending on vehicle mileage, year, service description (how it’s used), and condition of the vehicle at the time of contract purchase. Most extended warranty companies require that you have an in-depth inspection of the vehicle performed by a company-approved inspection station before they will allow coverage. If you’re buying the vehicle from a dealership, they have already done the inspection so you’re covered. This is understandable when you consider that there might be pre-existing conditions on the vehicle like engine or transmission wear/damage. The insurance company does have to protect themselves as well.
Some companies offer plans with no deductibles or tiered deductibles. The method of payment of claims varies. Some plans allow for immediate payment to the service provider via the use of a company credit card. These are the best, because the service provider gets paid immediately and therefore is more willing to deal with the extended warranty company. Others plans require that you first pay the bill, and they reimburse you later after you send supporting documentation for the claim into their fulfillment department.
The bottom line? Know whom you are dealing with before purchasing an extended warranty (and read the fine print).
‘Til next time … Keep Rollin’"America's Car Show" with Tom Torbjornsen airs 7:30 p.m. Wednesday, 9 a.m. Thursday and 11 a.m. Saturday on WBBZ-TV.