Anyone who has ever dealt with an insurance company understands how a deductible works. This is the amount of money that you have to pay out of pocket as the policyholder. The insurer then covers the rest of the expenses. Extended warranties sometimes work in the same way. You may have a deductible that will dictate how much of the auto repairs you have to cover out of pocket before the warranty company covers the rest. Here’s what you need to know about extended warranty deductibles.
Types of Repair Deductibles
There are two main types of repair deductibles. You either pay the deductible for each repair or for each visit. For the sake of illustration, let’s say that your warranty has a $100 deductible. If that deductible is per visit, then no matter how many covered items need to be fixed on the vehicle, as long as you get them all worked on in the same visit, you pay $100, and the rest is covered. However, if your deductible is per repair and you are getting the transmission, A/C, and drive axle worked on, your cost would be $300 because you would have to reach the deductible on each of the 3 repairs even though they are being taken care of during the same visit to the shop.
What Is the Deductible Based On?
With a manufacturer warranty, there is usually no deductible, so what is the deductible based on when it comes to an extended warranty. There are several factors. First of all, whether the car is new or used will make a big difference. The make and model of the vehicle are also taken into consideration.
Finally, your budget is considered. To make the service contract more affordable, someone with a smaller budget may have to choose a larger deductible to be able to afford the extended warranty. Remember that not all warranties have a deductible, but some do. You definitely want to discuss this with the agent selling the warranty to you.
The Right Coverage Options to Meet Your Needs and Budget
Vehicle Service Center is pleased to be able to offer the best coverage options to our clients. Our customer service representatives can help you to determine what plan will meet your needs and fit your budget. To get your free quote, just call 1-800-280-6708.