Buying a car is one of the largest purchases people make in their lifetime. With such a significant investment at stake, it’s important to understand why protecting your investment with an extended warranty is something to seriously consider. Here are the top five reasons you should buy an extended auto warranty for your vehicle:
1) It protects your car long after the factory warranty ends.
IHS Automotive found that the average length of new vehicle ownership is now 6.5 years, an increase of almost two years since 2006. People are keeping their cars longer, driving them consistently over 100,000 miles and above. In the U.S. one out of every four cars on the road was manufactured before the year 2000!
While most new vehicles come with factory warranties from the dealership, they are limited by the number of miles or years of ownership. GM offers a 36-month or 36,000-mile factory warranty, but with the average age of ownership more than double 36 months, that leaves your car unprotected for a substantial period of time.
2) Your warranty can pay for itself after one major repair.
Let’s face it – car repairs are expensive. The computer systems in modern cars can easily cost over $1,000 to fix! By buying an extended auto warranty upfront, these unexpected costs do not have to be paid out of pocket. The cost of one major repair may be more than you paid for your entire warranty, meaning you’re saving some serious cash in the long run.
3) An extended warranty can cover perks not included in factory warranties.
Extended warranty plans can include a rental car allowance and 24/7 emergency roadside assistance to their policyholders. This extra coverage is usually not found in basic factory warranty plans. The average cost of an economy car rental is about $45 to $65 per day. This can add up quick depending on how long your car needs to be in the garage for repairs.
4) You can lock in savings on a new car.
Just like life insurance, the cost of an extended warranty increases as a car ages. If you purchase an extended warranty plan with your new car, it will cost less than if you decided to purchase the extended warranty after your factory warranty ends. If you purchase the extended warranty on a new car you’ll get more bang for your buck, as your car needs repairs over time.
5) An extended warranty can increase resale value.
If you do decide to sell your car before the extended warranty ends, the warranty is usually transferable for a small fee to the new owner. Since the warranty gives the buyer extra peace of mind when buying a used vehicle, it can increase the resale value for the seller.
Bottom Line: Should you buy an extended auto warranty?
Extended auto warranties are a great choice for the buyer who is on a fixed budget, wants to protect their investment, and not be surprised by costly repairs down the line. So, if any of those reasons sound like you, an extended warranty is a sound decision.
Just like any other type of insurance or protection program, there are different types of policies that work for different situations.
If you’re considering buying a new car, or already own a car that isn’t covered by a warranty, contact us today to see if our plans work for you.
When the manufacturer’s warranty on your vehicle runs out, you might turn to extended warranty coverage for peace of mind. While there are numerous options drivers can choose from, one that you may be considering is a Fidelity car warranty.
But with so many extended car warranty providers out there, is Fidelity Warranty Services Inc. (FWS) the best option for you? In this article, we review Fidelity car warranties based on cost, coverage plans, and customer reviews.
Fidelity Car Warranty Review: 5.0 Rating
A Fidelity car warranty is an excellent extended warranty option if you’re looking for comprehensive coverage and nice perks. The company has a solid reputation among industry experts and drivers and is backed by a reputable insurance company.
Fidelity’s vehicle protection services are superior to most competitors and well above average.
Here’s a breakdown of how we rate Fidelity car warranties in several categories:
Customer Experience: 5.0
About Fidelity Warranty Services Inc.
A provider of warranty products and services for over 40 years, Fidelity Warranty Services Inc., based in Deerfield Beach, Florida, offers vehicle protection plans at dealerships nationwide.
FWS–which covers repairs at more than 6,000 participating repair shops nationwide–says it paid out more than $525 million in claims in 2020 alone.
Fidelity Extended Warranty Vehicle Service Contract Plans
The Vehicle Service Contract includes three Fidelity car warranty options. These vehicle protection plans are designed for newer cars and offer up to 120,000 miles of coverage depending on the age and mileage of your car.
Fidelity Extended Car Warranty
Bumper-to-bumper coverage with a few exclusions
Comprehensive powertrain coverage for the engine, cooling, transmission, drive axle, steering, electrical, air conditioning, front/rear suspension, and braking system
Basic powertrain coverage to protect your car’s major systems, including the engine, transmission, and drive axle
Fidelity Car Warranty Benefits
All Fidelity car warranties come with additional features, including:
How Does A Fidelity Car Warranty Work?
FWS partners with more than 3,800 U.S. dealerships, which sell its vehicle service contracts. Fidelity car warranty costs will vary depending on the dealer, so cost information isn’t directly available to consumers. For a Fidelity car warranty quote, you can contact a participating dealership in your area.
If your car breaks down, Fidelity recommends bringing your vehicle to your local dealership for repairs. If this isn’t possible, the company suggests contacting the customer service number found on your contract to find a participating repair facility.
Once repairs are made, Fidelity will pay the service center directly. You’ll only have to pay the deductible that you selected when choosing your coverage plan.
If you’re unsatisfied with your Fidelity car warranty, you can contact your dealership to find out about cancellation options. If you choose to sell your car while it’s still under warranty, your coverage is transferable to the new owner. Your vehicle service contract should include exact details about the transfer process and any applicable fees.
Positive Fidelity Warranty Services Reviews
“I recently purchased a 2021 Jeep Grand Cherokee … and called to ask questions as to all the details of the warranty. I was very impressed with the information and response that I received from the representative. Totally awesome!” – Ronald D. via BBB
“Service was easy, which is a plus. Everything was amazing.” – Victoria F. via BBB