PASCO COUNTY, Fla. — Bobby Hughes wanted the added protection he believed an auto warranty would provide his family. So after buying a used Dodge SUV, Hughes purchased a third-party warranty thinking it would cover most major repairs.
Months after purchasing the Dodge, the transmission went bad. The Hughes said they couldn’t believe it when their mechanic told them they would be responsible for more than $1,300 to replace it.
Chrissy Hughes said it wiped out the family’s savings account.
“We end up forking out $1,383 when we thought we were only going to pay $100 in deductibles," she said.
Century Buick GMC service advisor Bret Slavik said he's been the bearer of bad news to many customers about their warranty coverage.
“They finally bring their car in after nine or 10 months," he said. "And they find out their warranty doesn't cover anything or doesn't cover the full amount.”
That's because some warranties cover just the replacement part and a portion of the labor but not the fluids, parts, and supplies needed to complete the repair.
The Hughes said their policy covered the cost of the transmission but not all the taxes and parts required for installation.
Some key things to remember when considering a warranty outside of the original one provided by the automaker.
- Warranties are sold by dealers, automakers, and third-party providers.
- Don't sign up until you get in writing what's covered
- Check the reviews of the provider
- Check whether you are already covered under the manufacturer or a dealer warranty
- Weigh if you can pay for a major repair out of pocket
