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Insurance and Reinsurance of Extended Warranty Plans

Once you have decided that you had better do some research on the extended warranty plans you are interested in, one of the most vital items to check is if the claims fund is insured, and even better reinsured. This means that if the repair fund is depleted, your vehicle will still be repaired. In may instances an extended warranty company will go bankrupt if the claims fund is depleted and you will be left holding a worthless piece of paper.

Investigating the company that you decide you are going to purchase your extended warranty plan from is on the onus of the purchaser. A company that offers a plan declaring they will pay claims for the life of the contract is going to be a smart move, and probably one of the most important items to seek out in an extended warranty plan.

Regardless of whom you decide to purchase your extended warranty plan from, they should have a very strong retail history, and good financial reserves that are insured and re-insured. They should also receive a high rating from BBB, or the Better Business Bureau, AM Best or Standard and Poors.

Be careful of car dealerships that push you to purchase and extended warranty product, you are in no way obliged to purchase the product they recommend, and in fact, it is better to conduct your extended warranty research before even approaching a dealer to purchase a vehicle.

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