Extended Car Warranty, How To Choose The Right Plan

 There are many extended car warranty programs to choose from but it can be a bit tricky to find a “reputable” plan to suit your needs. The best way to choose a reliable extended car warranty program is to find a company that makes the following criteria…

1. Make sure the company is in business for 10 years or more. This assures you that they are not only in the business of selling coverage but also successfully paying claims.
2. You want to choose a company that has an A+ rating with the Better Business Bureau and perhaps more importantly, is accredited by the BBB which holds them to a much higher standard of excellent business practices and customer service.
3. You want the warranty program to be directly underwritten by a US-based insurance carrier holding at least an A rating with an industry rating service such as AMBest or Standard & Poors. This will assure you that if any part of the claims administration process fails the underwriter will directly pick up all claims if needed.

There are also many different levels of coverage available for your vehicle. These levels are Powertrain, Major Component Plus, High-Tech Component, Component Type Bumper-To-Bumper, or Exclusionary Bumper-To-Bumper coverage. Depending on the age and mileage of the vehicle all or most of these levels could be available. It is important to look through the different levels of coverage for any companies you are considering side-by-side to make sure that you are purchasing the best coverage available for your needs. Do not rely on plan names such as Platinum, Elite, or Gold as they do not always correctly define the level of coverage you are purchasing. Some less than reputable companies will take a very basic plan and label it with a very fancy name. You want to look at the actual list of what is covered to make sure you are getting what you’re paying for.

All in all, an extended car warranty is an excellent investment and can save you thousands of dollars over the term of the coverage. To begin researching the different types of coverage you can visit Auto Advantage and see what the choices are. It is a great idea to fill out the quote request form and let them send you the specifics including coverage details and pricing.

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5 Home Warranty Myths Debunked

While home warranties can be an additional level of protection for your home, some homeowners may have chosen not to purchase one and others may not even know what one is. If you’re wondering how a home warranty could help protect your home, here are five misconceptions and myths debunked.

Myth #1: “I don’t even know what a home warranty is, so I probably don’t need one.”

The more you know about the home systems and appliances in your home that may be covered by a home warranty, the more you may likely appreciate the value. Home warranties usually cover big-ticket items, like your furnace, air conditioner, plumbing, electrical systems and appliances — some of the essential things you use on a daily basis. A home warranty may help cover the repair or replacement of covered items that break down due to normal wear and tear.

Myth #2: “A home warranty is expensive; it’s not worth it.”

Have you ever thought about how much it would cost if you were to replace a major home system?  According to HomeAdvisor, the average cost of replacing a furnace may range from $2,298 to $5,550. Generally, a basic home warranty may cost you between $350 to $500 a year.

Myth #3: “I don’t need a home warranty, because I have all new appliances.”

Unfortunately, new items may break down, too. Without a warranty, you may be leaving yourself open to a potentially expensive repair on a new appliance.

Myth #4: “I maintain all my appliances and systems, so I would never need a home warranty.”

Breakdowns can happen unexpectedly, even to the most attentive homeowners. Routine maintenance can be a great thing and certainly helps, but it is no guarantee that things may not go wrong.

Myth #5: “I have homeowners insurance, so I don’t need a home warranty.”

This is a common misconception. Homeowners insurance and a home warranty are two separate things and offer different coverage. Homeowners insurance may cover things that happen due to an unexpected event, such as a fire or theft. But a home warranty is a service contract that provides for the repair or replacement of covered items when they break down due to normal wear and tear — things that can happen to just about any homeowner at some point.

Make sure to weigh all of the facts, and then decide if a home warranty may be right for you and your home.

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Auto Warranty Company Fake Testimonials, Endorsements, Recommendations and False Claims…

We are often questioned on why we don’t post any testimonials of our happy customers on our website. It is unfortunate, but it is become the practice of many companies, both reputable and not reputable, to either create their own testimonials or higher a public relations firm to do it for them. This is obviously a dishonest and poor way to run a business. We choose not to post testimonials, though we have many, as we simply will not fall into this group.

So how is a consumer supposed to know what companies are reputable and what companies are not? The last thing a customer wants to do is invest their hard-earned money in a warranty program that will simply not pay claims as they promise. The best way to protect yourself as a consumer is to make sure you follow the following guides…

• First, make sure the company you choose for your warranty coverage has been in business 10 years or more so they have shown experience successfully paying claims, not simply selling plans and collecting premiums.
• Second, make sure the plan you choose is directly underwritten by a US-based, A rated insurance carrier. Many “so-called” auto warranty companies are simply corporations or risk retention groups and have no financial or insurance backing. Having a directly underwritten plan means that if the warranty administrator ever fails to exist, your claims will automatically be paid by the insurance carrier and your coverage will be valid regardless.
• Third, you want to choose a company that has an A+ rating with the Better Business Bureau, and perhaps more importantly has been accredited by the Better Business Bureau.

The bottom line is that as you research the different coverage available to you, do not only look at the items covered and the price of coverage, look at the tenure and reliability of the company you are purchasing from. Though we are not the only company in the auto warranty industry, we are one of the best. To obtain a quote visit our webpage.

 

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5 Ways Critical Illness Insurance Can Be a Financial Life Saver

It was a world-famous heart surgeon, Dr. Marius Barnard, who created critical illness insurance, as he saw how the financial stress that accompanied cancer, heart attack and stroke was killing his patients. This type of insurance typically gives you a lump-sum cash payment if you are diagnosed with one of the illnesses specified in your critical illness policy.

No matter how you’d use the money, critical illness insurance always does one thing: It reduces financial stress.

But one of the challenges of critical illness insurance is understanding the many ways you can use the benefit—the money paid out—if you ever need it. Here are some of the ways I have seen:

1. To pay for deductibles, co-pays and other out-of-pocket expenses related to health care. This is the most obvious use, especially as deductibles and out-of-pocket expenses for health insurance plans continue to increase.

2. Expenses not covered by health insurance like travel, hotels, babysitting, etc. I know a person who had a great health insurance plan. He was diagnosed with colon cancer. His doctor told him, “You need to go to MD Anderson.” Complicating the whole issue, he and his wife had just had a child. So, they took his father-in-law along to watch his son. He had to charge airfare, meals and the hotel costs to his credit card. Several years later, he was still paying off that credit card.

3. Income protection, especially for the self-employed. If a self-employed person has an income-protection plan, including disability insurance, it most likely will have a 90-day elimination period before benefits are paid. One self-employed person I know was diagnosed with cancer. She would take her chemo treatments on Fridays. Then she would use the weekend to recover and try to be back at work on Monday or Tuesday. She did not miss enough days from work to meet her elimination period. Did cancer impact her income? Significantly!

4. Mortgage protection. Many people purchase life insurance so that if anything happens to them, the family’s home will be paid off and the family will be able to stay in the home. But what’s more likely to happen while paying on a mortgage—death or a critical illness? Depending on age, you could be as much as four times more likely to suffer a critical illness while paying a mortgage than to die.

Typically, insurance that covers from two to five years of mortgage payments will help significantly through the transition. A great thought-provoking question is, “Would it reduce your financial stress if you are diagnosed with cancer to know your mortgage will be paid for two years?”

5. Retrofit a home or car. I had a woman tell me that her husband had had a stroke. The couple had to take out a second mortgage to make modifications to their home, including a wheelchair ramp, significant changes to their bathroom, and the widening of doorways to accommodate the wheelchair.

No matter how you’d use the money, critical illness insurance always does one thing: It reduces financial stress. There is always emotional stress for a family with a family member who has a critical illness. Emotional stress increases directly with financial stress. A critical illness plan reduces the financial stress, which then reduces emotional stress. If you’d like to learn more about this important coverage, contact your insurance agent or advisor.

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The Truth About Home Warranties And Are They Worth It?

When you buy a new home you always have the option of purchasing a home warranty that, theoretically, covers the cost of repairs to various appliances and other home systems. But are these home warranties worth it and what should you be aware of before you actually buy one of these?

Before I get into some of the nuts and bolts behind these home warranty products let me explain that I actually managed the extended warranty program for Circuit City Stores for a period of time and these home warranties are a very similar product. In addition, I've studied the economics of insurance before and home warranties are basically insurance policies. So I know a fair amount about the economics of home warranties.

A Home Warranty Is An Insurance Policy

When you buy a home warranty - and they start around $420 - you are basically buying an insurance policy. The reason this is important to recognize is that insurance companies are in business to make money and that means that they expect to make money on the average policy they sell, which means that on average the people who buy these policies will lose money. Buyers will most likely pay more for the policy than they receive in return over the life of the policy.

Then why would you ever buy an insurance policy? Because you are willing to trade off the certain cost for a very uncertain cost. The insurance company can play the averages game but many consumers cannot or don't want to play that game and they are willing to pay a premium for the certainty. This is especially true as it relates to health care where a catastrophic illness can cost over $1 MM.

But when it comes to home appliances and other systems what is the worst thing that can happen? Maybe you need a new air conditioner or a refrigerator that might cost you a couple of thousand dollars. So for people who can handle that type of expense out of the blue, there is no need for them to buy an insurance policy - they basically "self-insure" from their own savings. But if a new air conditioner would break the bank then you might want to consider getting a home warranty.

How To Beat The Home Warranty Companies At The Averages

There is one advantage that the homebuyer has over the home warranty companies. They know more about what is being insured than the warranty company does and this asymmetrical information allows them to make a better decision about when to buy the warranty than the companies can make about when to sell the warranty. In fact, the companies will pretty much sell a policy on any property to any buyer because they just can't afford to inspect every home before issuing a policy. But a buyer is going to be more likely to buy a policy when they can see that a home has been poorly maintained - e.g. a trashed short sale - and is, therefore, more likely to develop problems. That's what I did when I bought my short sale. I bought a policy from Home Warranty.

This asymmetrical information leads to a problem for the warranty companies called adverse selection - the tendency of these companies to get stuck with bad deals. Consequently, they have to raise their prices to offset this bias, which means that anyone who buys such a warranty on a well-maintained property is overpaying.

Beware The Exclusions

It's important to understand what you are really buying when you get one of these home warranties. The contract is full of fine print which excludes a huge list of situations that you would reasonably expect to be covered such as:

  • Improper installation
  • Plumbing fixtures
  • Whirlpool jets
  • Ejector and sump pumps
  • Doorbells associated with intercom systems
  • Alarm system repairs above $400
  • Security video equipment
  • Central vacuum cleaner repairs above $400
  • The remote components of an automatic garage door opener
  • Ice and water dispenser in a refrigerator. In fact, it's not even clear if they cover the ice maker in the standard policy. I don't think they do.

That's just a small sample of my WarrantyOnWarranty Home Warranty contract. The entire list is enormous. But you can buy a higher cost policy that will cover some of these excluded items. Like I said...these guys are in business to make money.

Beware The Pre-Existing Condition

Just like in healthcare these home warranties have pre-existing condition clauses. When you call in a claim they will ask you a series of questions and if your answers indicate that you don't know for sure that this item ever worked properly since you owned the home then they will simply deny the claim. Now you can buy a premium plan that will cover unknown pre-existing conditions but, even then, if they somehow determine that you knew the item wasn't working when you bought the plan they will deny coverage.

Beware The Deductible

Just like in healthcare you have to pay a deductible for every claim made. On my Home Warranty contract, it's a trade call fee of $100.

The Warranty Company Does Not Guarantee All The Work Performed

This one really burned me up. The home warranty companies contract with various repair companies to actually perform the work and they will make sure that your reported problem is ultimately solved. However, apparently, and once again I can only speak from my experience with Home Warranty if the contractor's work directly or indirectly damages your home or appliance you are on your own to work out the issue with the contractor. WarrantyOnWarranty will do nothing to help you resolve the issue other than note a complaint in their system for future reference in dealing with the contractor even if WarrantyOnWarranty sent out an unqualified contractor in the first place.

For instance, we had a gas leak in our dryer and WarrantyOnWarranty sent out Bender's Plumbing of Addison to fix it. They fixed the leak but after they left we discovered that the dryer was no longer venting outside. Bender's Plumbing was dispatched again to fix this problem but incredibly they decided it wasn't their problem. Reluctantly we paid an appliance repair guy $80 to fix it and he explained that when Bender's moved the dryer the vent hose disconnected and was then crushed as the dryer was moved back in place. If Bender's had known what they were doing they would have opened a panel on the front of the dryer to reconnect the hose and pull it out of the way as they slid the dryer back in place.

Bender's initially promised to send me a check for $80 but it never arrived and then they wouldn't return my phone calls. And even though WarrantyOnWarranty should never have sent out a plumber to do an appliance repairman's work they refused to help resolve this dispute.

Your Realtor Gets A Commission For The Sale Of A Home Warranty

And this is a lesser concern because it does not involve a lot of money but your realtor does get paid a small commission to sell a home warranty. It's around $70 I think, which is such a small amount that my company rebates it back to our clients to avoid any conflict of interest however small. But you should still be aware of this because some realtors will do anything for a buck.

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Umbrella Insurance for a Very Rainy Day

Many consumers are not aware of the benefits provided by an umbrella policy and many may not even be aware of the existence of such a policy. Others might just view it as an “upsell” offered by insurance companies and agents hoping to make some extra income. However, the policy actually offers significant benefit to individuals and, according to the Insurance Journal, the state of Maryland’s Insurance Administration has issued a consumer advisory explaining the policy’s benefits. If you don’t currently have an umbrella policy, you’ll want to read on to understand better what it can do for you and your family.

In your standard home insurance policy, there’s a limit of liability for personal liability claims. The usual coverage that’s automatically provided is generally $100,000. However, given today’s litigious society and the cost of medical care, a claim can easily exceed that amount. If you are a homeowner, your assets, including your house, can be attached in the event of a judgment against you. This is where an umbrella policy can really help out.

The personal umbrella policy is given its name because it acts as an umbrella over more than just your personal liability policy. Most people who have umbrellas use the policy as extra protection for both their personal liability and automobile liability coverages. For example, if you have a $1 million umbrella policy, it will provide the $1 million in protection if either your personal liability or auto liability policy limits were exhausted.

Keep in mind that this is a liability policy and not a property policy. Therefore, even though your home insurance policy has two main types of coverage, the umbrella only applies to the personal liability portion of the coverage. As an example, if you have not insured your home for the proper amount and have a large claim, the umbrella policy will not provide you with any benefit. On the other hand, if someone is injured on your property and sues you, the umbrella policy will be prepared to step in if your home insurance policy’s personal liability limit is exhausted.

It’s common for people to consider the umbrella policy as an optional item and not necessary. Even if they are aware of the existence of umbrellas, many people choose not to purchase them, thinking that a very large loss will never happen to them. Unfortunately, when something unforeseen actually happens, it’ll be too late to purchase the coverage. Umbrellas are generally inexpensive when viewed in relation to how much coverage they provide. That low premium is a good sign of the relative infrequency of loss contemplated by the insurance companies in underwriting the policies. However, just because everyone thinks it’s rare for a loss to occur doesn’t mean they don’t believe it will never occur.

You should also keep in mind that there might be some ways to save on insurance premiums by purchasing an umbrella policy. Because many insurance companies offer a multi-policy discount, you might find that it’ll defray the cost quite a bit. When I first started purchasing an umbrella policy, the discount I received from adding it to my existing home and auto policies with the same insurer almost covered the entire cost of the umbrella! Given its low cost and potentially great benefit, you should really invest in an umbrella policy.

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Hybrid Cars And Auto Warranties

Many motorists are starting to make the switch to hybrid cars for various reasons. The main two reasons are a sharp increase in gas prices and a desire to protect the environment. There are a lot of things that you should know about hybrid cars before you choose whether or not they are right for you.

1. Hybrid cars help to protect the environment. This is because they run on less gas and can help to reduce the amount of smog in the air by as much as 90%.

2. There are many beneficial features in hybrid cars. They have good gas mileage and can get anywhere between 50 and 60 miles per gallon of gas. In addition, they do not need to get plugged in like an electric car because they will recharge as you drive. Also, they have a lower depreciation value and can be resold much easier. Lastly, if you drive a hybrid car, you may be able to get a tax rebate from the government.

3. A hybrid car will produce less noise. When you bring it to a full stop, it shuts down. This is helpful because you save gas. This is even more beneficial for drivers who are constantly driving in stop-and-go traffic.

4. Hybrid cars tend to be a bit more expensive. Though this is the case, the money is not wasted. Between the amount of money you save on gas and the amount of money you save on maintaining a hybrid car, it amounts to the total that you spend buying the car.

If you choose to switch to a hybrid car, it is wise to protect this investment with an auto warranty. An auto warranty will help lower the costs of maintenance and repair bills.

 

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Be On The Lookout For Fraudulent Auto Warranties

 

 

Purchasing an auto warranty is a risk if you don’t know the rules and regulations of the warranty. It is wise for vehicle owners to think about hiring a professional car consultant who can help them through the sometimes-tricky process of buying an auto warranty. Buying an auto warranty without assistance poses a greater risk of purchasing a fraudulent warranty.

A fraudulent auto warranty is generally a warranty that offers a great variety of features and prices so well that it just too good to actually be true. However, the seller that is claiming that they provide this auto warranty won’t actually provide all of the services they are offering to the consumer. In the used car market, fraudulent warranties are common. This makes it important for consumers who are looking to buy used car warranties to be careful throughout the purchasing process.

Due to the circulation of fraudulent auto warranties, the US administration made a law that protects consumers that is called the used car warranty law. This law is also well known as the lemon law.

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3 Things To Be Aware Of About Your Auto Warranty

Any car owner can have peace of mind when taking the car to the shop for repairs and maintenance when the car is covered by an auto warranty. Auto warranties cover the cost of repairs and maintenance on the car. Here are three things to be aware of about your auto warranty:

1. Thoroughly read through the warranty so that you are completely knowledgeable about how long the coverage lasts and what parts of the car are covered by it.

2. Know where the auto warranty is coming from. Is it coming from an aftermarket auto warranty company or a manufacturer? It is important know exactly who is handling your policy.

3. Know the terms of your warranty and make sure that you perform all required maintenance on your car. Auto warranties only remain valid if you get specific work done to your car. In addition, keep a record of all repairs and maintenance performed on your car in the event that you need to take care of a claim.

Auto warranties put your mind at ease when you bring it to the shop to have work done. If you want to get the most out of your auto warranty, it is essential to be knowledgeable about all of its details.

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