How Auto Warranty Brokers Work
Brokers have developed a bad reputation in most industries largely because they like to take a fair chunk of anything they secure on your behalf, but there are some industries and sectors where brokers are almost priceless. The world of the extended auto warranty is one such place where brokers are not too bad, and having one can be a time and money-saver. That’s the good news. The bad news is that even among auto warranty brokers, there are bad apples, and so you must do a bit of due diligence when selecting one. Below we’ll take a look at that due diligence process, as well as what precisely you can get from selecting a decent auto warranty broker.
How Auto Warranty Brokers Work
An auto warranty broker acts as conduit between you the vehicle owner, and the auto warranty company that is looking to offer you some sort of coverage protection. More than just a middleman, the auto warranty broker acts as an advocate, often making solicitations on behalf of several other vehicle owners. But aside from doing leg work in finding the best auto warranty company, brokers can also give you sound advice on the types of coverage you should be looking to take on. Using their wealth of experience, a broker will tell you if you are better of excluding or including certain parts of your vehicle under a warranty policy—this can be handy in terms of cost-savings.
Free or Paid?
You will almost always never have to pay an auto warranty broker as they tend to engage the warranty companies themselves for compensation for the work they put in. By pooling their clients when they make a submission to a warranty company, they are able to bring substantial business to a company, negating the need to charge you upfront for their services. This doesn’t mean that you won’t come across a company that offers brokering services for a fee; just be aware that you don’t have to pay for this sort of service and you’ll be fine.
How Do You Find a Good Broker?
Before you set off to find a good broker, it is important to have solid criteria for judging what ‘good’ means. The first thing you should look for is honesty; a broker that is hyping too much the services of one company over the other is doing you a disservice. Next, you should make sure that the broker you are engaging is accessible; anyone who cannot be reached at the very least via an email should be avoided. You should also do a quick check on the recommendations a broker makes. This will ensure that they aren’t recommending a dud—something that may cost you dearly down the road.
That said your best bet of finding a decent auto warranty broker is the internet. The best ones will be accessible through a website, and this will save you time in sifting through warranty companies on your own. In fact, some auto warranty brokers have a simple ranking system that lets you see which choice is the best (often number 1), with a few lesser, but potent companies. Once you are satisfied with their recommendation, you usually only have to click on a link which takes you through the actual warranty company. From there it’s a matter of selecting your coverage and presto!
You really can’t go far wrong by using a broker. The time you save will make room for doing the things you actually enjoy, and less time worrying about what can possibly go wrong with your car and the outrageous costs involved in fixing them.