Video: Car Warranties

Warranties ease the burdens of what if.  But peace of mind doesn’t always come cheap, especially in the auto world…

Rick Hibbs, Regional Director of the Department of Financial Services, recently sat down me to talk about the pros and pitfalls of extended car warranties.

Experts agree, first and foremost, when purchasing an extended warranty, make sure you thoroughly read through the contract and terms.  Before you sign on the dotted line, you should verify if the warranty company is licensed to do business in the state of Florida.  Before Rick advises every consumer to “background check” your potential warranty company by calling the Florida Department of Financial Services Consumer Helpline at 1-800-342-2762.  This hotline is open Monday through Friday from 8am-5pm.  It is a free call.

Additionally, other points you should consider when purchasing an extended warranty include:
• How long you have had and plan to keep your vehicle
• How many miles you drive each year
• Whether you plan to solely lease or eventually buy. 
• Bumper to bumper typically does not include wear and tear items
• Don’t be pressured into buying a warranty when you purchase or lease your vehicle, some companies offer this option at a later time.
• A big trend today is online or mail warranty solicitations… while they may be cheaper you have to make sure a company is licensed here in Florida… remember if it sounds to good to be true it probably is.