Is CARCHEX Worth The Money?

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CARCHEX says it can make the process of choosing an extended warranty for your car easy and hassle-free. If you’ve ever been pitched on buying extended coverage from the dealer, you’ll know doubt no that it can be a high-pressure experience. There’s also that little voice in your head that questions the need for such coverage, and wonders if it’s all just a big scam. But is this something you need, and is CARCHEX the best way to get it?

Overview
If you’re like most people, you hate it when something goes wrong with your car. This means that you’re going to have to bring it to the mechanic and it’s going to cost a fortune, one way or another. Unless you know a lot about cars, you basically have to take their word for it and accept what they say is wrong with your car. The whole process can be very stressful, especially if it’s something big like transmission repair, which can cost thousands of dollars.

The Claim
CARCHEX claims that they have a no-haggle, low price for extended warranty coverage for your automobile. They do this by guiding you through the process with one of their reps until you come to a coverage option that meets your needs and is affordably priced. They also claim to have an A+ rating with the BBB.

The Hype
The hype is that this is an extended warranty, and many people believe that these are a waste of money. It’s basically like buying insurance, if nothing goes wrong with your car, then you’re basically paying money every month for nothing. If you do need repairs done, then you’ve made the right choice buy having them covered. The other thing people worry about is that what goes wrong with your car won’t be covered by the warranty, and you’ll end up having to pay for it out of pocket anyway.

The Commitment
You’re not under any obligation to continue with your coverage, but if you cancel it and something goes wrong with your car the following month, you won’t be covered and you’ll have to pay for the repairs yourself. If you file a claim, you have to be committed to following it through the entire process, and jumping through the various hoops, like providing receipts for maintenance work you’ve had done.

Evaluation
This is one of those services that you’ll regret not having it if something does go wrong, but you’ll feel like you wasted your money if everything goes fine. The people at CARCHEX don’t really care one way or another, because they get paid either way. If you do go with it, there are some pretty good features, including the claims being paid directly, so you don’t have to come up with the cash and then wait to be reimbursed.

They also let you choose your own repair facility, which if you’ve ever had to deal with getting work done at specified repair shops, can be a real pain. This let’s you choose one that’s close by, and one that you feel is capable of handling the repairs correctly.

One thing we don’t like is the drawn out process of requesting a quote. If it’s no-haggle, and guaranteed to be the lowest price, why not just tell people how much it costs and let them buy it instantly online. Making people fill out a form and then having someone call with a quote is a high-pressure way of doing business that seems a little out of place in today’s day and age.

They let you chat live with a rep, but this too is just more hassle. It would be easy enough to ask enough questions on an online form to be able to give an accurate quote, without having to interact with a sales rep. They repeatedly say you can get an instant quote, but instant means instant, not having someone call you back, and not having to chat for several minutes with a rep just to make an order.

The reason for this is that CARCHEX doesn’t actually provide you with the coverage directly, they are a broker for different service providers, and they are basically there to assist you in choosing one.

Final CARCHEX Review

While it may be a low-cost way to get your car covered for repairs, CARCHEX has plenty of loopholes that they could use to avoid paying your claim. For example, they say that you need to follow the maintenance guidelines that are recommended by the manufacturer,

and be able to provide receipts that these services have been rendered, and the dates this occurred. Few people with a malfunctioning car properly maintain it, and those that do don’t keep detailed records of each oil change and tire rotation performed. The large majority of people with a broken down car will not be able to meet item #1 on the 3-step process of filing a claim.

They also don’t cover any pre-existing conditions, so if you’re car is on the verge of collapse you can’t sign up for the warranty and then take it in the day you’re covered and try to get them fixed on the cheap. Although it would be interesting how they determine when a problem started.

Our Recommendation
It’s up to you whether you feel CARCHEX will give you peace of mind when it comes to extended coverage for your car. If you have the receipts and maintenance records for your car, and it’s currently running fine, it might be a good idea to insure things stay worry-free for you.

Official Website: CARCHEX