Extended Warranties Explained
1. What is an extended auto warranty?
An extended warranty is an agreement between the car owner and warranty company, obligating the warranty company to pay for repairs covered by the contract for a specific period of time.
With an extended auto warranty you are protecting yourself from the unexpected cost of mechanical failure.
One major repair often ends up costing as much, or even more than the entire cost of the warranty.
2. What exactly does an extended warranty cover?
Know what's covered, and what's not covered, by the extended auto warranty you're considering. Does the contract cover breakdown as well as wear and tear?
Do you have ABS brakes? If your vehicle has this feature, you should consider upgrading to a higher coverage level (if available). Not all policies cover ABS systems.
Before committing to an extended auto warranty, take the time to fully explore the ins and outs of its coverage. The distinctions between the various plans might seem slight, but they can prove quite important.
3. Why do I need an extended auto warranty?
Since common mechanical repairs can cost into the thousands, protecting your automotive investment is a very important decision.
Whether you own a new or older vehicle, an extended auto warranty will provide you with peace-of-mind protection regarding costly mechanical repairs that can happen at any time during the life of your vehicle.
Buying an extended auto warranty today will allow you to avoid paying higher rates later due to price increases.
You'll be able to immediately take advantage of your plan's benefits: towing, lost key/lockout, and car rental discounts.
4. Why should I purchase an extended auto warranty now if my vehicle is still covered by the manufacturer?
As your vehicle accrues age and miles, the price for an extended auto warranty will rise as do the repair costs that you would experience for an older, out-of-warranty vehicle. You are only buying total mileage coverage, not addition of mileage to your current total.
An extended auto warranty will provide you with peace-of-mind protection regarding such expenses. Some are transferable, allowing for increased vehicle resale value.
5. What about the deductible?
Fully investigate a policy's deductible before signing on the dotted line. Consider not only its amount, but also whether it's per visit or per repair. With a per-visit deductible, each visit to the shop will run you a fixed amount, regardless of how many parts are repaired; a per-repair deductible applies to each serviced part. What sounds like a minor difference may, under certain circumstances, have a major impact on your wallet.
There are still $0.00 deductible policies. You will have to pay extra for this type of extended auto warranty, but if your circumstances become such that you have to take your car in frequently, you'll find that this policy more than pays for itself.
6. What type of auto warranty can I buy?
Powertrain Warranty: Covers the engine, transmission, and other parts of the Drivetrain only.
Bumper-to-Bumper Warranty: Covers nearly all of the mechanical systems of the vehicle, from front bumper to back bumper; except for those on the "exclusion list," listing the parts that are NOT covered by the extended auto warranty. It is much easier for a consumer to see a short list of items that are not covered and know that everything else is.
Named Component Warranty: Covers the major mechanical systems of the vehicle from mechanical breakdown and mechanical failure. If the part is not listed, it's not covered by the contract.
7. If the manufacturer's warranty for my vehicle has expired, can I still obtain extended auto warranty coverage?
Many consumers do not realize that even after the manufacturer's warranty has expired, their vehicle is still eligible for extended coverage. You can generally receive coverage on vehicles that have less than 100,000 miles on the odometer.
8. Where can I get an instant quote for an extended auto warranty for my vehicle?
When looking at extended warranty companies, financial stability and claims paying experience should be of utmost importance.
YourAutoAdvisor.com offers you Free Auto extended warranty quotes for your car or truck. Get your Free quote today.
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