Financial protection for your car is a natural topic. After all, you could easily undermine your budget if you take on a few unexpected car repair bills. Follow along as we observe how an aftermarket car warranty could be part of the equation.
Bills, Bills, and More Bills
Many of us have our horror stories with cars. After a $400 repair bill, only a few months later you meet another one that has doubled in price. When will it end?
Finding a way to protect yourself isnít always easy. For instance, you will probably have to choose between one or more of the following:
Rely on your car insurance. While a car insurance comparison can make sure you’re getting a good price on your policy, the insurance won’t help you save money for repairs and other items.
Have an emergency savings account. This is a strong option that can help you with unexpected bills (more than your car, by the way). Earning interest in a savings account is another perk, along with the peace of mind and protection you receive for your budget.
Choose an aftermarket warranty. If your new car warranty has expired, this can be an option to safeguard against that future repair bill.
Unfortunately, many car owners do none of the above. The wait-and-see approach, however, can be a one-way ticket to a bad-tasting car bill. On a tight budget, that can create real problems.
Can your budget handle an unexpected car bill? According to the Insurance Information Institute, the average car repair bill is $871, as of June of 2004. This is certainly not something that you want to take care of without a plan.
Do You Need an Aftermarket Warranty?
Let’s get to the good part of aftermarket car warranties:
Peace of mind: Never underestimate the value of this when you own a car. How would you like to see the average car repair bill two or three times this year? You never know.
Budgeting stability: It’s one thing to meet unexpected car repair bills. For the sake of planning your budget, it is easy to plan on the price of the warranty and a bit extra for uncovered items. It’s much simpler to setup your budget in this way.
Flexibility: From basic (i.e. powertrain) warranties to comprehensive warranties, you can probably find something that fits your needs. Many choices in the type of policy and the company that backs it translates to some interesting options.
While there are plenty of advantages to an aftermarket car warranty, the debate is present for avoiding one. According to John Nielsen, director of AAA’s Approved Auto Repair Network, “If you just save that money the odds are that you’ll come out ahead.”
Look into it for yourself, though. And regardless of the option you choose, spend some time evaluating how you will handle an unexpected car repair bills. Perhaps you need an aftermarket warranty, or you may just choose to boost your emergency savings account. Whatever the case may be, follow universal financial advice & have a plan.
“Considering an Aftermarket Car Warranty?” is by Brian at Car Insurance Comparison.