There's a brand-new TELEVISION commercial extolling the advantages of a prolonged car service warranty. It reveals one customer relaxing easily in the waiting room Tow Chandler of his automobile repair shop (he has the car extended service warranty) and another person upset and frustrated that he'll need to spend for his automobile repair work (he certainly doesn't have a prolonged plan). What's intriguing is that the industrial repeatedly states that, with the service warranty, the repair work is FREE. This is a little bit misinforming ...

The commercial notes that the gentleman with the guarantee will not need to pay the $1,200 to change his electronic control system. However, the truth is that extended car service warranties that have no deductible and cover these types of electronic parts cost $3,000 to $5,000 - in advance. As you can see this is far from FREE. At the $5,000 mark, this guy's cars and truck requires $3,800 in "covered repair work" just to break even, provided the guarantee doesn't end. They go on to state that towing is covered 100% which they will pay your repair shop directly. There are problems with both these statements also.

If you read the fine print, towing is only covered particular distances - don't believe they'll let you tow it back to your dependable regional mechanic if you break down 200 miles away. Furthermore, the automobile service center is under no responsibility to accept loan from "your" extended warranty company, hence requiring you to pay up front and then get reimbursed. Most significantly, as we discuss routinely at RepairTrust, automobile repair approximates vary considerably. If your car requires $2,000 worth of work, your extended guarantee might (according to their price quotes) just pay $1,700. Your stuck paying the difference of $300.