Top 9 Questions To Get Answered Prior To Buying An Extended Warranty

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.

1. What actually does an extended warranty cover?

You have to understand clearly what's covered, and what's not covered, by the extended auto warranty you're considering to acquire. Does the contract adequately cover breakdown as well as wear and tear to the vehicle? Under a "breakdown" warranty, coverage is extended only to such parts that break. Such an extended auto warranty can prove less inclusive than what is actually expected, as not all parts fail to perform on account of a breakage. Some parts need to be replaced because they would have naturally worn out over a period of time; a "wear-and-tear" warranty extends coverage to worn-out components that require replacement. Besides, some extended auto warranties are not known to cover TSBs. A Technical Service Bulletin (TSB) or Factory Service Bulletin is a notification by the manufacturer that there may be a problem with your vehicle. Sometimes there is a problem that warrants urgent attention; such bulletins are normally issued to ensure a quicker diagnosis of the problem or repair procedures from your repair facility. It is quite normal for a vehicle to have dozens of TSBs issued. Most companies will not entertain any claim related to a TSB. This is a huge coverage lacuna. Also, ABS brakes, in case your vehicle has this feature, you must give a thought to upgrading to a higher coverage level (if the same is available). And overheating, regardless of how it happens, isn't covered in many car warranties. Thus, if overheating occurred due to below par performance of an expensive part such as a radiator, you'd end up coughing up a huge bill payment. Before you hastily sign on an extended auto warranty, take the time to study exhaustively every minute aspect of its coverage implications. The distinctions between the various plans might seem negligible, but they can prove quite costly later.

1. Do I really 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.

1. Do I need to buy an extended warranty when the vehicle is covered by the manufacturer?

As your vehicle covers many miles and becomes older, the price for an extended auto warranty will automatically go up as do the repair expenses which are normally the case for an older, out-of-warranty vehicle. You are only purchasing total mileage coverage, and not extra mileage to your current total. Hence you have nothing to lose here but only gain. Taking advantage of your new vehicle and low mileage is the most prudent approach as you plan for unavoidable repair costs in future. An extended auto warranty will provide you with peace-of-mind protection in case of such unexpected expenses. Some are transferable, allowing for enhanced resale cost of the vehicle.

1. What is a deductible?

You need to thoroughly investigate the policy before purchasing. Apart from the amount, you need to check if it is deductible per visit or per repair. You will have a fixed deduction every time you visit the shop with the Per Visit deductible. It doesnt take the repair details into consideration. The vice versa for the Per-Repair deductible. For each repair a certain amount is deducted. It might seem similar but might cause a major difference at times. Let us consider an example here. You have $100.00 per-repair deductible policy. You take you vehicle for repair of A/c, Engine and break. This might cost you $300.00 in total costing $100 per repair. Where as if u hold a Per Visit deductible, you will be charged only $100 for all the repairs There are some policies with $0.00. But the initial cost for such policies might be high. But during situations, it will prove its worth.

1. What kind of extended auto warranty should 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.

1. 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.

1. How does the claims process work?

Whenever your vehicle breaks down, just take it to any licensed repair facility. Show your service agreement to the Service department. After complete inspection of the damage of the vehicle, they acquire repair authorization for all your covered repairs less a deductible. They get this authorization by calling claims administrator(Toll-free). All the claims are paid directly to your repair facility , so you do not have to pay anything in cash and later worry about the reimbursement. Its a cash less facility.

1. Where can 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.