A Brief Guide to Selecting Your Auto Warranty Deductible

Oct 31, 2018

Auto Technician Talking With CustomerShopping for an extended car warranty might seem simple. As you begin to dig into the details, however, it may become clear that there’s a lot to think about before you take the plunge. Among these details is your auto warranty deductible.

With most warranties, like the ones offered by Chrysler Warranty Direct, you’ll have the opportunity to select a deductible that’s right for you. But it’s important to remember that lower deductibles tend to come at a cost. Let’s discuss three major considerations that should play a role in your deductible decision.

  1. How’s your overall financial situation?

Think about your current budget. Are you living paycheck to paycheck, or have you amassed an emergency fund to help you cope with life’s unexpected troubles? These factors are crucial when selecting a deductible. The lower premium afforded by a higher deductible may seem tempting, but if you’re not equipped to pay that deductible in the event of an emergency, you may be better off with something lower.

  1. How likely are you to need repairs?

Think about your driving habits. Drivers who primarily drive in a small town on well-maintained roads have a fairly low risk factor, which means you shouldn’t need repairs too often. In turn, this means that you may be able to afford a higher deductible.

A younger driver who commutes to a bustling city is another story. Not only will you be driving for longer periods of time – putting more wear on your vehicle – you may also encounter a few potholes along the way. That means there’s a much higher chance that you’ll be paying your deductible before long. Shoot for something low.

  1. What’s the value of your vehicle?

This one is simple. If you drive an older car that’s not built with rare, luxury parts, a high deductible doesn’t make much sense. After all, a few deductibles’ worth of cash could go toward a higher-quality vehicle. If you just picked up a brand-new sports car, on the other hand, even the highest available deductible is likely only a fraction of your car’s overall value. It could be a good option, so long as you think there’s adequate risk and prefer a lower premium.

Shop Mopar Warranties

Chrysler Warranty Direct offers genuine Mopar protection plans available with a variety of terms and deductibles. Apply for a free instant quote online, or contact us to learn more about available auto warranty deductibles.