Car Buying Tips Guide 1

any claims. Some benefits, such as rental car and trip-interruptionreimbursements, may still be paid by your service contract if the factory (^)
warranty doesn’t cover them, though.
The other point in time where you can usually get the best bang for yourbuck on parts and service contracts is while the car is still just within factory (^)
warranty. The insurance company will assume any needed work has beenpaid for by the manufacturer, so there is less chance of any preexisting
conditions that can blow their loss ratios, meaning the contract will costless. It is also much easier to still get the more comprehensive,
exclusionary coverage contracts before the factory warranty expires.
You’ll normally be able to get coverage for another five years or 100,000 total miles—whichever comes first. Of course you can go shorter on time (^)
or mileage, but the cost savings—especially if you plan to get a refund onany prorated, unused portion—will be minimal.
TIP: Buy the longest coverage you can afford.
It will make the coverage more attractive if you resell the car, and you canget a bigger prorated refund if you cancel it or when you resell. These plans (^)
will generally be called “near-new” coverage, and have the sameexclusions as if you purchased it when the vehicle was brand new. If the (^)
factory warranty is up, you might be able to still get the same level ofcoverage; it will just be shorter in term or mileage, and will cost more.