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{This post is sponsored by H&R Block. Read our disclosure policy here.}

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Tax Deductions Explained (and Common Ones You Could Claim)



Part of being an American is looking toward Tax Day with either dread or anticipation. Will you have to cut a check to Uncle Sam, or will you get a plump refund? Tax deductions can tip the scales — a lot — meaning you’ll end up sending less money to the IRS.

We all want that, right? 

Read on to understand which common tax deductions you could claim when you file your 2019 return. Note that we use 2019 numbers because these apply to the tax return that’s due April 15, 2020.

What Is a Tax Deduction?

Tax deductions, also known as tax write-offs, lower your taxable income so you’ll pay less overall. You can either go with the standard deduction, which is a predetermined amount that is subtracted from your income, or itemized deductions, which take into account your particular expenses such as charitable donations and some health care costs. 

Tax deductions are different from tax credits. A tax deduction decreases your taxable income, whereas a tax credit lowers the amount of taxes you owe the IRS.

Calculating Your Adjusted Gross Income

Deductions are typically calculated from something called your adjusted gross income, or AGI.

Do you know how much you make each year? What about the amount you contribute to retirement? The IRS uses this information and more to calculate your adjusted gross income (AGI), which is the starting point for figuring out your tax bill.

Your AGI includes your wages, alimony, dividends, retirement distributions and business income. If you’ve paid student loan interest, contributed to a traditional IRA or paid into a health savings account, those expenses are deducted. What’s left over is your AGI.

Changes From 2017 Tax Reform

In late 2017, Congress passed the Tax Cuts and Jobs Act, a sweeping overhaul of the federal tax code. The main change affecting everyday Americans was to the standard deduction; before 2018 it was $6,350 for single filers and $12,700 for married couples filing jointly. Under the new law, it nearly doubled: For 2019 taxes, it’s $12,200 for individuals and $24,400 for married people who file a joint return.

While the 2017 changes were good news for some people, they came at the expense of several popular deductions that were eliminated. These include:

  • Job-related moving expenses for non-military
  • Home equity loan interest deduction, unless the loan is used to improve the home
  • Alimony for the person paying spousal support
  • Job search expenses
  • Unreimbursed work expenses

Standard vs. Itemized Deductions

Still, a number of itemized deductions remain in play. Whether you choose the standard deduction or itemize them depends on your personal situation. 

If your potential deductions equal more than the standard deduction, itemizing will lower your taxable income and save you money. 

Here’s another way to think about it: If you’re a young, single person with a full-time job, you’re healthy and you rent rather than own a home, you will almost certainly take the standard deduction because your deductible expenses probably won’t total more than $12,200. 

But if your financial profile is more complex — think mortgage, property taxes, medical expenses — then you might benefit from itemizing.

Popular Tax Deductions for Itemizers

woman holding tax documents and reading message on smartphone at home

If you’re thinking of itemizing, you need to know what is and isn’t tax deductible. Here are some common deductions.

1. Charitable Contributions

If you gave money or goods to a charity during the year, you could be eligible for a tax deduction. The organization must be designated as a nonprofit by the IRS. Usually these are religious, educational or charitable groups.

There are some limitations on what you can include in this deduction. For example, if you donated to your local PBS station and they sent you a “thank you” T-shirt, you can’t deduct the value of the shirt. So if your contribution was $100 and the T-shirt was worth $10, you can only deduct $90 on your tax return.

Additionally, you can only deduct charitable contributions up to 50% of your AGI. (Most people can’t donate half their income to charity anyway.) But there are additional limits depending on the organization. Donations to churches, hospitals and colleges qualify up to 50% of AGI, but contributions to veterans’ organizations and fraternal societies have a lower cap — only 30% of AGI.

You can deduct expenses from charitable work.

Pro Tip

For example, if you knit hats for a homeless charity you could deduct the cost of the yarn you used. Make sure you save your receipts in case you’re hit with an audit.

2. Mortgage Interest

The interest you pay on your home mortgage can total many thousands of dollars, particularly at the beginning of the loan. Luckily, you can deduct that interest from your taxable income. This is applicable for debt up to $750,000 or $375,000 if you’re married filing separately through 2025 . If you bought your home on or before Dec. 15, 2017, you can deduct mortgage interest on debt up to $1 million or $500,000 if you’re married filing separately.

3. Property Taxes

The 2017 tax reform put new limits on property tax deductions. Beginning in 2018, you can deduct state and local taxes up to $10,000 or $5,000 if you’re married filing separately. Those caps are for state and local income, property and sales taxes combined. 

Let’s say you paid $8,000 of state income tax, $7,000 of property taxes and $6,000 of sales tax. Your deduction is limited to $10,000. Prior to tax reform, you could have deducted each of these expenses in full. 

4. Medical Expenses

If you had significant medical expenses last tax year that weren’t reimbursed by insurance, you could get a deduction. The bills must equal 10% or higher of your AGI to qualify for the deduction in 2019. Even then, you can only deduct the amount above 10% of AGI.  For someone with an AGI of $50,000, that means you can’t deduct medical expenses until they exceed $5,000, or 10%.

Pro Tip

If your state has an income tax, you may be able to deduct a percentage of medical expenses from your state taxes as well, though the amount will vary.

Qualified medical expenses include:

  • Bills paid to doctors, dentists, chiropractors and more
  • Hospital visits or stays
  • Nursing home care
  • Some weight loss programs
  • Addiction programs
  • Prescription medications
  • Transportation to and from medical appointments
  • Acupuncture
  • Dentures, crutches, hearing aids, wheelchairs and service animals
  • Reading or prescription glasses or contact lenses

Deductions You Can Claim With the Standard Deduction

Even if you don’t itemize, there are some valuable deductions you can still claim. They’re known as “above-the-line” deductions.

1. Educator Expenses

In an ideal world, teachers wouldn’t have to pay out of pocket for school supplies. In reality, most teachers routinely dip into their own funds to buy pencils, paper, glue and other items for their classrooms. The IRS allows K-12 teachers to deduct up to $250 for educator expenses such as classroom materials. 

2. Student Loan Interest

If you paid interest on your student loans, you can deduct up to $2,500 in interest payments if you earned less than $$70,000 for single filers or $140,000 if you’re married filing jointly. Above that, the deduction phases out, but those earning up to $85,000 as single filers or $170,000 for those who are married filing jointly can get a reduced deduction. 

This only applies for people filing their own tax returns; if you’re still listed as a dependent on your parents’ tax return you can’t claim the student loan interest deduction. You also can’t claim this deduction if your loan isn’t in your name. So, if your parents took out the loan on your behalf, they will get the deduction instead.

3. Moving Expenses for Military

Members of the military are eligible to deduct moving expenses from their taxable income. In previous years, civilians could also deduct moving expenses, but the deduction is now limited to military personnel.

4. Health Savings Account Contributions

Health savings accounts, or HSAs, are accounts you can use to save for medical expenses if you have a high-deductible health insurance plan. A high-deductible plan is defined as one that has a minimum deductible of $1,350 for a single person or $2,700 for a family. 

You can deduct contributions of up to $3,500 if you’re single or $7,000 for a family in 2019. 

5. Self-Employment Expenses

If you’re self-employed, you can deduct quite a few expenses. These include:

  • Home office: You can deduct the space devoted to your home office at a rate of $5 per square foot for up to 300 square feet of space. However, you must use this room exclusively as your home office, so you can’t set up a desk next to your spare bed and claim that as your office. You also must use that room regularly for business.
  • Education: As a self-employed individual, you can deduct things like tuition, books and lab fees for education that “maintains or improves skills needed in your present work,” according to the IRS.
  • Car: If you use your car for business, such as driving to meetings with clients or vendors, you can deduct 58 cents per mile as of 2019. You can also deduct things like gas, licenses, tolls and parking fees.

6. Health Insurance Premiums

If you are self-employed, you can deduct your health premiums.

You can also take the deduction, minus any subsidies you received, if you get your health insurance through a state or federal marketplace.

7. IRA Contributions

You could get a tax deduction if you contribute to a traditional IRA as part of your retirement savings portfolio. The maximum contribution for 2019 is $6,000, and $7,000 for those over age 50, and it’s fully tax deductible. But your eligibility also depends on how much money you make and whether you or your spouse has an employer-sponsored retirement plan. Consult the IRS guidelines for those income limits.

Catherine Hiles is a contributor to The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Benefits of Fixed Deposits (FDs) in India



For Indians, investing in a fixed deposit has always been one of the preferred choices. There is very low risk involved while the returns are guaranteed. Also, fixed deposits are not market linked thus market volatility plays no part, thus, an ideal choice for those who are less aware of the capital market.

What is Fixed Deposit?

Fixed deposit is a financial instrument in which there is a fixed rate of interest for a fixed period of time. Tenure of deposit can range from as little as 7 days and it can stretch out till 10 years (20 years in some banks).

Here, investors are offered with a higher rate of interest and thus the returns are ascended as compared to keeping one’s money in a savings account.

Benefits of Fixed Deposit in India

The following are some of the key benefits that ace-up fixed deposit investments:

  • Safe Investment Option with Guaranteed Returns

Fixed deposits are one of the safest options present in the market. Unlike other investment options like mutual funds, FDs are not market-driven. FD investors are provided with a rate of interest which remains the same throughout the FD tenure. Investors, at the time of booking the FD, know what to expect from their investment. This also helps in better financial planning.

  • Encourages Habit of Saving

Saving is a habit not many excel but all wish to have a good balance to rely upon in times of need. Fixed deposits help in extending the same. Since investing in a fixed deposit account does not attract any significant risk, people are less hesitant to invest in the same.

Also, since it is a liquid option, depositors have a sense of satisfaction that if an emergency arises, all they need to do is break the FD prematurely and remedy the emergency. The penalty is negligible and sometimes counts next to nothing (i.e. no penalty in certain banks).

  • Backed with Deposit Insurance of Rs. 5 lakh 

Bank fixed deposits (retail banks and small finance banks, both) are backed with an insurance of Rs. 5 lakh. This cover is provided by DICGC (Deposit Insurance and Credit Guarantee Corporation) which is a wholly owned subsidiary of the Reserve Bank of India or RBI.

In case the bank defaults, i.e. goes bankrupt and becomes unable to return account holder’s savings or deposit amount, DICGC steps in and pays Rs. 5 lakh as compensation. Earlier, this cover was of Rs. 1 lakh, which has recently been increased to Rs. 5 lakh, as per the Union Budget 2020 released on 1st of February 2020.

Irrespective of the amount of deposit made in FD, be it even less than the insurance cover (of Rs. 5 lakh), investors will be paid with the full coverage amount.

  • Tax-Saving Option

All the banks provide their customers with tax saving FD options which help in bringing down their taxable income, which in turn, pulls down tax to be paid too. Investors can put in up to Rs. 1.5 lakh of amount in a tax saving fixed deposit which can be quoted in deductions u/s 80C of the Income Tax Act, 1961.

These schemes come with a lock-in period of 5 years, i.e. before 5 years, no premature withdrawals can be made (only in case of untimely death of the deposit holder).

  • Higher FD rates for Senior Citizens 

Senior citizens are offered higher fixed deposit interest rates. This practice is adopted by most of the banks and non-banking financial companies as well. Preferential rate for senior citizens usually ranges from 0.25% -0.65% above the standard FD interest rates.

  • Flexibility in Interest Payout 

Interest earned in a fixed deposit is paid in two ways, viz. cumulative and non-cumulative. Cumulative option translates to accumulation (buildup) of interest on which further interest is earned (interest on interest aka compounding effect) and paid on maturity. Non-cumulative option is the exact opposite of cumulative one. Here the interest is paid on regular intervals, as chosen by the depositor, be monthly, quarterly (every 4th month), half-yearly or yearly.

For those looking for regular income, non-cumulative options suit well, otherwise it is better to go with the cumulative one so as to earn maximum returns by letting the power of compounding work.

  • Facility to Avail Loan against FD 

Instead of taking an unsecured loan at high rate of interest, fixed deposit holders have the option to finance their emergency themselves, i.e. by taking loan against their own fixed deposit. A small percentage (0.5% – 2%) of interest is charged over the applicable fixed deposit rate.

This way, one does not need to pay hefty interest rates (like that in an unsecured loan) and do not have to compromise on the FD interest as well. Also, there is no need to break FD too.

  • Simple to Understand

As safe an option FD is, it is equally easy to comprehend too. For an amount of Rs. 1 lakh for 1 year @ 8% interest, there will be a profit of Rs. 8,243 (quarterly compounding). No market fluctuation shall bring this amount down. There is no need to monitor the FD on a daily basis, unlike other investment instruments like equity funds. There are no market-related dips involved in FD.

However, if the depositor chooses to withdraw the FD amount before maturity, there shall be a downward shift for sure.

Check and compare the best fixed deposit schemes as well best FD rates offered by top banks in India: 

Fixed Deposit Schemes by Top Banks in India
SBI Fixed Deposit HDFC Fixed Deposit Axis Bank Fixed Deposit
ICICI Bank Fixed Deposit Bank of Baroda (BOB) Fixed Deposit Punjab National Bank (PNB) Fixed Deposit
Oriental Bank of Commerce (OBC) Fixed Deposit Canara Bank Fixed Deposit Union Bank of India (UBI) Fixed Deposit

The post Benefits of Fixed Deposits (FDs) in India appeared first on Compare & Apply Loans & Credit Cards in India-

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How to Choose the Best Extended Car Warranty



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Even the most common car repairs can be exorbitantly expensive. According to recent figures, the cost of replacing an engine and cylinders can run from $7,000 to $10,000, whereas replacing a hybrid car battery can cost upwards of $6,000. A new transmission can cost $4,000 to $5,000, and even a new head gasket will set you back an average of $2,000. The list goes on and on.

The best way to save yourself from the surprise cost of any of these repairs involves purchasing an extended car warranty as soon as you can. The problem is, there are almost too many car warranty companies competing to sell you a warranty policy, and some of those companies are less than reputable. It’s common for companies to charge more than these warranties are really worth, or to add a bunch of fine print to your warranty that can make it difficult to use.

To help you make sense of everything, we compared dozens of car warranty companies to find the absolute best. Not only did we focus on the inclusions of the warranties they offer, but we compared companies based on third party reviews, the fine print (which you definitely need to read), and more. Carchex came out ahead in our ranking due to their excellent user reviews and all the bonus features their plans offer from day one.


If you’re in the market for an extended car warranty, keep reading to learn how these companies fared in our study, what each one includes in their warranty products, and all the factors you should consider before you purchase an extended warranty for your vehicle.

Most Important Factors When Purchasing an Extended Car Warranty

Where can you use your car warranty? While the extended car warranty companies that made our ranking offer plans that can be used at nearly any repair facility or dealership nationwide, this isn’t always the case. Make sure to check any car warranty you’re considering to see if there are rules that can limit where you can get your car fixed and use your warranty coverage.

Ask about deductibles and waiting periods. Some auto warranties require a deductible, although it’s difficult to find out about deductible amounts and plan costs without getting a free quote. You should also ask about waiting periods some companies require before your warranty kicks in.

Check the fine print. Make sure to read over the fine print of your warranty so you know details like where you can get your car repaired. Some warranties only let you seek out covered repairs at participating dealerships and auto repair companies, but these companies may not even have a location in your area.

Know what is included in your extended car warranty. Finally, make sure you read over the plans each company offers in order to find out which components of your vehicle will and will not be covered. Each company is very specific on these details, so it’s not difficult to find this information on their company websites.

The Best Extended Car Warranties of 2020

Comparing companies who offer extended car warranties isn’t a ton of fun, but it’s crucial if your goal is winding up with the best warranty for your needs and your wallet. As you compare extended car warranty companies to find the right fit, we suggest starting your search with this list:

Company Highlights  
  • 5 levels of coverage
  • A+ rating from BBB
  • Great customer reviews
  • 30-day money back guarantee
Learn More
endurance car warranty
  • Tailored plans to suit your needs
  • Payment plans available
  • In-house administration
  • 30-day money back guarantee
Learn More
  • 3 tiers of coverage offered
  • A- rating with BBB
  • Great user reviews
  • 30-day money back guarantee
Learn More
liberty bell auto protect
  • 3 tiers of coverage offered
  • In-house administration
  • 30-day money back guarantee
  • Must have less than 140,000 miles
Learn More
infinite auto protection
  • 3 tiers of coverage offered
  • A+ rating from BBB
  • 30-day money back guarantee
Learn More
autopom car warranty
  • 4 tiers of coverage offered
  • A+ rating with BBB
  • Great user reviews
  • Cars must meet certain requirements
Learn More

Which Services Didn’t Make the Cut?

While extended car warranties can help you avoid pricey repair bills that can wreck your budget and force you off the road, keep in mind that not all companies in this space are reputable. For example, the car experts at Edmunds note that many extended car warranties aren’t what they seem, and that some hide behind loopholes and fine print to avoid having to cover repairs that should be included.

That’s why we compared companies for our ranking so carefully, and why consumers should do their due diligence to make sure they don’t wind up giving their money to a shady car warranty company. Cars are expensive on their own, so you shouldn’t waste money on a warranty that doesn’t work as intended.

Reviews of the Best Extended Warranty Companies

Ready to compare all the top extended car warranty companies head to head? The following reviews include the main details you should know about each company, as well as highlights and areas where they could improve.


carchex car warranty

Carchex is an extended warranty company that is well known within this industry for the quality of their policies. They boast an A+ rating with the Better Business Bureau (BBB) as well as a 99% customer satisfaction rating. This company also has an average of 4 out of 5 stars across over 1,200 reviews on Trustpilot.

Carchex offers five different levels of coverage, each with more included repairs and longer available warranty timelines. Titanium coverage is their highest level of extended warranty coverage, followed by Platinum, Gold, Silver, and Bronze. However, you should note that all Carchex extended warranties come with 24/7 roadside assistance, towing, rental car access, gas delivery, and trip interruption insurance, among other perks. You can also get an instant quote online just by entering information about your vehicle and where you live.

Get Started With Carchex

Why Carchex Made the List: Carchex extended warranties come with more perks than many competing companies offer. This firm also has some of the best rankings and reviews from customers and third party ranking agencies. Carchex also offers a best pricing guarantee and a 30-day money back guarantee.

What Holds it Back: Like other car warranty companies that made our ranking, Carchex doesn’t publish any prices on their website. They also offer more plans than some competing companies, which is almost too overwhelming and confusing.


endurance car warranty

Endurance is one of the most popular extended car warranty companies offering these products on the market today, and it’s easy to see why. This company offers a handful of plans that can suit any car warranty needs, and you can even pay for your warranty on a 36-month payment plan. You should also be aware that you can purchase a plan from Endurance once your car’s manufacturer’s warranty is about to expire, meaning you don’t have to have any lapse in warranty coverage.

Tailored extended warranty plans you can choose from include specific coverage for high mileage vehicles, basic plans with affordable coverage, and superior plans with more inclusions and longer coverage timelines. Also note that all extended car warranties from Endurance come with a one-year Endurance Elite Membership. This membership includes perks like roadside assistance, ID theft coverage, key fob replacement, tire repair and replacement, and more.

Get Started With Endurance

Why Endurance Made the List: Unlike some other companies that sell plans offered by third party warranty companies, Endurance actually administers its plans. That means you’ll purchase your extended car warranty from the same company that oversees your plan. Endurance also offers a 30-day money back guarantee on all of their plans.

What Holds it Back: Like some other extended car warranty companies, Endurance doesn’t hint at pricing on their website. You have to contact this company to get a quote. Also note that Endurance is not accredited by the Better Business Bureau.

Concord Auto Protect

concord auto protect warranty

Concord Auto Protect is another company that stood out in our study thanks to their excellent rankings and reviews. This extended warranty company boasts an average of 4.5 out of 5 stars from users on Trustpilot as well as an A- rating with the BBB.

Concord Auto Protect offers three extended warranty plans to choose from — powertrain coverage, an advanced plan, and a premium plan. However, you do have to call into the company or fill out an online form to get a free quote.

Another benefit of using this company is the fact that all their plans come with additional perks. Benefits you can look forward to include free roadside assistance, rental car coverage, and a 30-day money back guarantee.

Get Started with Concord Auto Protect

Why Concord Auto Protect Made the List: This company has excellent user rankings and reviews. They also administer the plans they sell, which means they are entirely accountable for sales and service.

What Holds it Back: Only their priciest extended warranty plan covers high tech electronic components that may be in your vehicle.

Liberty Bell Auto Protect

liberty bell auto protect

Liberty Bell Auto Protect is another highly rated company that offers extended car warranties that protect consumers from scary car repair bills. This company offers three easy-to-understand coverage levels with tiered inclusions — Platinum, Platinum Plus, and Platinum Prime. Also note that this company administers all of their warranty plans, and that they even have an in-house claims team.

Each plan from Liberty also comes with additional perks like 24/7 roadside assistance and a 30-day money back guarantee. You also get 100% parts and labor coverage while your car’s warranty is in effect.

Get Started With Liberty Bell Auto Protect

Why Liberty Bell Auto Protect Made the List: Liberty Bell Auto Protect offers three easy-to-understand plans, and they administer all of their warranties in house.

What Holds it Back: You can only buy a warranty from this company if your vehicle has less than 140,000 miles.

Infinite Auto Protection

infinite auto protection

Infinite Auto Protection made our ranking due to their excellent user reviews and their robust warranty plans. This company has an A+ rating with the BBB and mostly “excellent” reviews on Trustpilot. They have three plans to choose from — a basic foundation plan, a modern plan with more included items, and a prime extended auto warranty that covers most aspects of any car, including high-tech electronic components.

You do have to fill out a contact form or call into the company to get a free quote. However, you should be aware that Infinite Auto Protection plans do offer the option of monthly payments, and that you can use them virtually anywhere. Also included in every plan are rental car coverage, 24/7 roadside assistance, courtesy towing, and other perks.

Get Started With Infinite Auto Protection

Why Infinite Auto Protection Made the List: Infinite Auto Protection comes with included perks like rental car coverage and roadside assistance. They also have excellent user reviews and a top rating with the BBB, along with a 30-day money back guarantee.

What Holds it Back: Infinite Auto Protection doesn’t offer any information on pricing or deductibles on their website. You have to work with a customer service agent in order to get a quote for your vehicle.


autopom car warranty

Finally, make sure to consider autopom! despite this company’s quirky name. This company has an A+ rating with the BBB for starters, but they also have an average of 5 out of 5 stars in their most recent reviews. This means their actual customers approve of their products and service, which makes it a lot easier for us to recommend them in our ranking.

autopom! offers four levels of warranty coverage — Powertrain Plus, Mid-level, High Level, and Exclusionary. Where the lower tier Powertrain coverage provides basic replacement and repairs when your powertrain and other major components break down, the top tier Exclusionary coverage is considered “full coverage” for your vehicle.

Customers should also be aware that all plans from this company come with rental car assistance, roadside assistance, a 30-day money back guarantee, and other perks.

Get Started With autopom!

Why autopom! Made the List: This car warranty company has excellent user reviews and plans to fit any warranty needs. They also offer affordable payment plans.

What Holds it Back: Autopom! requires cars to meet certain condition standards in order to qualify for their policies.

What You Need to Know About Extended Car Warranties

There are numerous advantages that come with purchasing an extended car warranty that provides coverage long after your car’s manufacturer’s warranty expires. For example, these plans can help you avoid the high costs of repair bills once your car starts aging and requiring ongoing repair work. Not only that, but the best extended car warranty companies make it easy to tailor your plan to include the types of coverage you want the most.

Unfortunately, there are some downsides to be aware of when it comes to purchasing extended warranties. For starters, these warranties can be expensive, and that’s especially true if you purchase top tier warranty coverage. While having a warranty can pay off in a big way if you do have an expensive repair need pop up, keep in mind that the opposite is also true. If your car runs fine and never has any big problems, an extended warranty will provide you with peace of mind but not much else.

Another downside of extended warranties is the fact that they don’t always cover what you need them to. These plans are typically loaded with fine print that can come back and bite you if you don’t pay attention, including some important limits on what is and what isn’t covered. Before you buy an extended warranty, it’s crucial to read the fine print so you know exactly what you’re paying for.

Speaking of fine print, it’s important to find out where you can get your car fixed if you do face a pricey repair bill. As J.D. Power notes, some extended car warranties only include a short list of approved facilities that will perform repairs covered by your warranty.

“If the vehicle breaks while on a trip, or if you move to a different region of the country while the warranty is in effect, such restrictions can render the warranty useless,” writes J.D. Power.

Our advice? Make sure you can use your warranty almost anywhere. If you don’t, you could wind up with a warranty you can’t even use.

How We Chose the Best Extended Car Warranties of 2020

Finding the best extended car warranties required us to research the plans each company offers and what they include. However, extended car warranties aren’t worth very much to consumers if the companies that market them make them difficult to use. With that in mind, here are the main factors we considered to help consumers find the best extended car warranties money can buy:

Excellent user reviews: Extended car warranties are nothing more than a written contract until you have to use them. With that in mind, we placed priority on user reviews from actual consumers who have purchased a car warranty and made a claim. All of the companies on our list have good or great reviews from previous and current customers.

Ease of Use: We also focused on warranty companies that let you use your warranty at nearly any repair shop or auto dealer. That way, you won’t be stuck with a warranty you can’t use if you move across the country or face a pricey repair when you’re traveling far from home.

Company Guarantees: We also gave preference to companies that offer an upfront price guarantee and/or a money-back guarantee. Most of the firms we profiled here offer a 30-day money back guarantee that lets you get a refund if you’re not satisfied.

Payment Plans: Finally, we looked for extended car warranty companies that offer payment plans. While it’s never fun to finance any purchase — and especially not a car warranty — payment plans let you enjoy the benefits of your warranty right away whether you have the cash to pay upfront or not.

Summary: Best Extended Car Warranties of 2020

carchex car warranty Learn More
endurance car warranty Learn More
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The post How to Choose the Best Extended Car Warranty appeared first on Good Financial Cents®.

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