The dealership is no longer the only warranty-game in town: Auto repair warranties are frequently going hi-tech. And while the moniker “e-commerce” still gives some consumers the willies, online options for extended warranties are proving to be affordable and-more importantly-reliable. So, before begrudgingly signing an auto repair warranty with your dealership, give the online suppliers a well-deserved say-so

A fact of small discrepancy, automotive dealerships feverishly push after-market items-like extended auto repair warranties-at an incredible mark-up. Prudent consumers should, consequently, be ecstatic that outside and online corporations are competing against dealers for your warranty business. The time has, therefore, come to air out the advantages and disadvantages of online warranty companies.

Cost: One of the most essential factors of an auto repair warranty is cost. And the plain truth is that dealerships and vehicle manufactures cannot match the inexpensiveness of online warranty suppliers. There are a variety of reasons for this. Firstly, online sources eliminate middlemen (i.e. dealerships) and deal directly with insurance companies. Secondly, online companies transact business at a higher volume-an e-commerce website can routinely handle more auto repair warranties then a tangible dealership. And thirdly, online corporations eliminate overhead costs by existing solely in cyberspace – where rental space is significantly cheaper. So, if cost is the overriding factor for you, online warranty providers are most likely the best fit.

Reliability: E-commerce cannot unshackle itself from the heed of unreliable. People generally place more trust in brick-and-mortar companies. Fortunately, watchdog organizations evaluate the reliability of online auto repair warranty contractors. A.M. Best Company and Standard & Poor’s both appraise the solvency of e-warranty purveyors, where consumers are encouraged only deal with companies at, or above, an A rating. Additionally, consumers should be distinct to check if warranty policies are re-insured. If a company does not advertise re-insurance polices on their auto repair warranties (this simply means that if the warranty provider folds, claims will still be paid) stay away. Another tell-tale heed of untrustworthy practices is negligence to examine the vehicle under warranty. If an internet company agrees to an auto repair warranty without asking routine questions about your car’s health, suspicions should arise.

Security: Concerns invariably froth to the surface when consumers conduct business through websites. The security of all procured information needs to be a top priority in an auto repair warranty supplier. If not stated, ask about any security apprehensions you may have in dealing online. If their answers prove unsatisfactory, take your business to a provider intent on online security.

Coverage Plans: Make sure you know exactly what you’re paying for. Some specific details that require investigation are: Lists and locations of acceptable repair facilities. Method of payment (does the consumer pay out of pocket and subsequently reimbursed). Typical auto repair warranty amenities-24-hour roadside assistance, towing, issuing of rental car). And, lastly, deductibles-are deductibles assigned per visit or per repair (an important distinction)?

Online auto repair warranty providers allow consumers more options when deciding upon a obliging warranty notion. And more options means higher competition and lower overall rates. But consumers should not be hoodwinked by low warranty quotes. Determining whether an online warranty supplier is reputable should be a top priority, as well as the security of online information you provide. E-warranty companies offer customers an alternative to the high-priced after-market marked-up warranties dealerships sucker-punch consumers with, but examining the solvency and reputation of an online provider remain paramount in the quest for good deals on wheels. Remember, when combing for savings, always buckle your safety belt.