Top 9 Used Car Warranty Questions
1. How would your define an extended auto warranty?
It is an accord with the warranty company made by the car owner in order to cover the maintenance for a specific duration. This helps in keeping up the unpredicted expenses incurred due to the automotive repairs. It would cost much more than the cost of the warranty at times, if your vehicle has something major repairs. It is mandatory to clearly understand the terms of warranty the as a customer. We also need to understand the needs of the warranty industry. There will be differences in the level of coverage offered by different companies in the market. But it is common for every company has its hidden terminologies to regulate the coverage.
2. What actually does an extended warranty cover?
Consumer need to have complete knowledge of what is covered and what is not covered under extended warranty.There are 2 main categories to look into whether it has “breakdown” warranty coverage or “wear-and-tear” warranty coverage.A “breakdown” warranty provides coverage for the parts that break however not all parts fail due to breakage, some of them needs to replaced as they have worn out with time. “Wear-and-Tear” warranty provides coverage for the worn-down parts. Another major point to consider is , warranty should provide coverage for TSB. Car manufacture occasionally notify the consumer regarding a condition on vehicle that may exists and which requires immediate attention. That notification is called A Technical Service Bulletin (TSB) or Factory Service Bulletin. So make sure your extended warranty provides coverage for such TSB. In addition to above factors, also keep in mind that it should have coverage for ABS brakes and coverage for damage due to overheating, as overheating can lead to major part replacement such as radiator. So a consumer should consider all the above factors and pros and cons of each warranty before purchasing an extended auto warranty.
3. Do I need an extended auto warranty?
Each mechanical repair might cost big and these rates are on the climb. So measures should be taken in order to safeguard the investment made on the vehicles. It is always safe to have an extended warranty irrespective of what make/model you hold, which could cover your unexpected repairs on the life of the automobile. No matter what the problem is or when it would occur, an extended warranty can cover it at any future point within the validity of the warranty irrespective of the external causes like rise in price in the market, or increasing surcharges due to massive repair etc. You can benefit from the warranty instead to face these problems on your own.
4. Do I need to buy an extended warranty when the vehicle is covered by the manufacturer?
The price of the extended warranty and the vehicle age are directly proportional. As the number of years of your vehicle increases, the rate of the warranty also increases. It is only that we buy the total mileage coverage, not the additional mileage Investing on the vehicle in order to maintain the newness and the mileage is only a rational approach where as the other side would only unavoidable expenses on the repairs. The only solution for the rational thinking is opting for an Extended Warranty. There is an option of even transferring these warranties, in case of resale.
5. What about the deductible?
You have to thoroughly investigate a policy’s deductible prior to affixing your signature. Pay attention not only to the amount, but also whether it is calculated at per visit or per repair. With a per-visit deductible, every visit to the shop will cost you a fixed amount, irrespective of the number of components repaired; a per-repair deductible applies to each serviced part. What sounds like a negligible difference may, under certain circumstances, may lead to a severe strain on your purse strings. For example, let us assume you’ve got a $100.00 per-repair deductible and you take your car in to get the air conditioner, fuel pump and alternator serviced, you’ll be spending a staggering price of $300.00. Had you opted for a per visit deductible, all those repairs would only have cost you only $100.00. Hence, understand the implication and tread carefully. There are still $0.00 deductible policies. But then, you will have to pay extra for this type of extended auto warranty, but if your circumstances warrant that you have to take your car in more often, you’ll find that this policy is more beneficial.
6. What kind of extended auto warranty should I buy?
Powertrain Warranty: This warranty covers only engine, transmission and parts of drivertrain. Drivertrain includes all the parts through which oil flows. There are about 29 parts in this. It is said that these parts failure rate is pretty less. There are about an average of 1000 parts in a vehicle. And the powertrain do not cover most of the parts, it is not recommended. Bumper-to-Bumper Warranty: This covers almost all the parts from the from bumper to the back bumper. It has got an exclusion list which has the parts that are not covered under this warranty. Seeing a list of parts excluded makes the choice much easier with no much complications. Named Component Warranty: This warranty covers on a major mechanical system in a vehicle. Any parts that do not come in this system is not covered by the warranty. NOTE: There are a few companies which sells the same kind of policies listed above and mention bumper-to-bumper. This could be a poor coverage which is deceptive. None of the warranty covers the consumer products like brakepads,windshields,wiper etc. extended auto warranty package also offers Roadside assistance and travel reimbursement plans. This could be taken i addition to the basic warranty also. There are a few which offers a stay and meal in case of breakdown.
7 Can I still buy an extended warranty after the initial manufacturer warranty has expired?
Many consumers do not realize that even after the manufacturer’s warranty has expired, they can still opt for extended coverage. You can generally receive coverage on vehicles that have run under100,000 miles on the odometer. A vehicle out of its original warranty is more liable to have mechanical failure as compared to a newer vehicle. For this reason, vehicle inspections are mandatory. A good example in this regard would be life insurance. As you age, can you get a comprehensive life insurance policy without a physical examination and an increased cost?
8. How does the claims procedure work?
The top warranty companies work like this: Assuming your vehicle breaks down or is in urgent need of a repair, take it or have it towed to any licensed repair facility and present your service agreement to the Service Department. After they have studied the problem with the vehicle, they will call the claims administrator toll-free and receive repair authorization from him for all your covered repairs minus a deductible wherever applicable. All claims are then paid directly to the repair facility of your choice with a corporate credit card; therefore, you need not pay for your repair and wait for the reimbursement.
9. How do I get an instant quote for an extended auto warranty for my vehicle?
When looking at extended warranty companies, monetary stability, track record, and claims paying history of the company should be given utmost importance. There are a number of extended warranty companies out there, and I recommend Warranty Direct. They are a 25 year old company having an experience of nearly 2 million contracts sold, having assets in excess of $165 million, have paid over $500 million in claims and they happen to be re-insured by an ‘A’ rated A.M. Best insurance company with over $2 billion in assets. All these facts work to the advantage of the company.
Tags: auto, automobile, Cars, vehicles
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