Top 9 Auto Warranty Questions
1. What is an extended auto warranty?
A warranty agreement that legally binds the warranty company to pay for your auto repairs covered by the contract for a specific time frame is called extended auto warranty. It is an agreement between the Warranty company and the respective car owner. It gives you complete protection for unexpected cost of any mechanical failure. A car owner must understand all the clauses of the agreement by learning the terminology and the industry requirement as there might be hidden language buried in the contract. Consumer must have clear understanding of the coverage as there is no regulation against the coverage and level of coverage varies from company to company. Consumer need to understand that one major repair at times costs more than the cost of the actual warranty so be cautious of jargon and hidden clauses in the contract.
2. What does an Extended auto 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?
Since simple mechanical repairs can run into thousands easily and these costs seem to be rising rapidly; safeguarding your automotive investment should not be treated casually. Whether you are in possession of an older make/model, an extended auto warranty will provide you a great relief and peace-of-mind regarding expensive mechanical repairs that could occur at any time and anywhere during the life of your vehicle. Going for an extended auto warranty today will prevent you from paying higher rates later even if the price increases and required surcharges on account of the various issues that arise as the vehicles flaws become known. You’ll then be able to immediately seize the advantage of your plan’s benefits: towing, lost key/lockout, and car rental discounts.
4. Why should I purchase an extended auto warranty now when my vehicle still enjoys the warranty period that 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 is a deductible?
Consumer should consider not only the amount but also whether he has been charged per visit or per repair. Per Visit is the cost deductible as per your visit to the shop whereas a per-repair deductible applies to each serviced part. For example, 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 have to pay $300.00. IF you have opted for a per visit deductible, those repairs would only cost you $100.00. There are certain policies which have $0.00 deductibles, however consumer has to pay extra.
6. What type of auto warranty can I buy?
There are Couple of types of warranties available.Those are as follows: Powertrain Warranty: This warranty covers the engine, transmission, and other parts of the Drivetrain only, which is defined as the 29 parts of the vehicle through which oil flows. These are the parts least likely to fail. The average vehicle contains thousands of parts. As it does not cover the majority of the components of a vehicle, the Powertrain Warranty is truly not an extended warranty. Bumper-to-Bumper Warranty: This warranty covers almost all of the mechanical systems of the vehicle, from front bumper to back bumper; except for those on the “exclusion list”. 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. NOTE: Some companies sell above plans with the name tagged Bumper-to-bumper which can be misleading because it is always an inferior level of coverage. There are certain consumable items, such as brake pads or windshield wipers,these parts are never covered. Extended auto warranty package also offers Roadside assistance and travel reimbursement plans.Some even offer free lodging and meals if your vehicle breaks down on a trip.
7. Can an extended auto warranty be purchased after the initial manufacturer warranty has expired?
Extended Auto warranty is available even when the vehicle’s initial manufacturer warranty has expired. It is advisable to buy extended warranty before the odometer reaches 100,000 miles. Vehicle inspection is generally required when the manufacturer warranty has expired as vehicle is more qualified to have mechanical failure as compared to new one.
8. How does the claims process 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 rates?
There are many such companies in the market, you can search for the one that best suits your requirement. One such company is Warranty Direct. Warranty Direct is one of the major Companies to provide Extended auto warranty. They are a 25 year old company that has the experience of nearly 2 million contracts sold, assets in excess of $165 million, has paid over $500 million in claims and they are re insured by an ‘A’ rated A.M. Best insurance company with over $2 billion in assets.