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Common Warranty Questions

There are some important questions which need to be asked while purchasing an extended warranty. They are:

Meaning of an extended auto warranty – An extended warranty is when the owner of the car and the company covering the warranty agree the warranty company will cover the cost of all the repairs for the car for the time period of the contract. An extended auto warranty will help in protecting the car owner from all the expenses, which he will have to incur when the car needs to be repaired. When the car needs to be repaired, the cost of the repair will sometimes be more than the total cost of the warranty during the entire period. Different companies offer different levels of coverage.

Coverage under the extended warranty – It is very important to understand exactly what is being covered under the extended warranty. A breakdown warranty will only cover parts of the car which have been broken. Hence, not all the parts of the car have been included in the warranty. Some parts of the car will have to be replaced after some time since these are subject to wear and tear and make sure that your warranty covers the replacement of spare parts. Most extended warranties on vehicles do not cover TSB or Technical service bulletins. This is a notice which is issued by the car manufacturing company about a certain condition, which might exist on your car. This might be a problem which might need immediate attention and any repair, which has to be done, will have to be done immediately. There might be many TSBs, which have been issued on a particular model of a car. But companies which issue warranties, will not include a clause for a TSB. The level of coverage should be changed in case your vehicle has ABS brakes. Overheating is another feature, which is not covered in most warranties. In case overheating has damaged your radiator, then you can look forward to paying a very heavy repair bill.

Need for an extended warranty – Certain mechanical repairs for a car can cost a lot of money and the cost of repairing cars is increasing as the days go by. Regardless of the model of the car which you possess, it is important that you have an extended warranty on your car and this will make you feel at peace since you do not have to worry about the cost of the repairs, which will have to be incurred on your car. The cost of all repairs which will be incurred during the lifetime of the car, will be covered through this warranty. Buying an extended warranty at the time of purchase of the car will help you to save a lot on expensive repairs especially since the cost of repairs is increasing drastically. The warranty will also cover the costs of towing, lost keys and car rental discounts.

Extended warranty when the manufacturer warranty is available – As the age of the car increases, the cost of an extended warranty on the vehicle will also increase. The cost of repairing the vehicle will also increase. Mileage coverage is only the total mileage coverage and not any additional mileage, which is being covered. When the vehicle is new, it is better to take low mileage coverage, as this will make a lot of room for any unforeseen repair costs. Having an extended auto warranty on your vehicle will take care of all unforeseen repair costs on your car.

Deductibles – The clause on deductibles should be checked out properly before the extended warranty is taken. Apart from the amount, you need to know whether the deductibles are for each visit or for each repair. If the deductible is for each visit, then the cost of each visit will be fixed and you can have a lot of repair work covered under that one visit. This might not sound very important but it could make a lot of difference to your repair bill at a later date. If you take a per visit deductible, then you could get your air conditioner, fuel pump and alternator covered in one visit at the cost of $100. If you take a per repair deductible, then you will have to pay $100 for each part which is repaired and this could cost you $300.

Best warranty for each person – There are many different kinds of auto warranties. They are:

Power train warranty – The engine, transmission and other parts of the drive train get covered under this. This covers 29% of the vehicle through which the oil flows and they have the least likelihood of failing. Since most parts of the vehicle are not being covered under this warranty, this cannot really be called an extended warranty.

Bumper to bumper warranty – All the mechanical parts of the vehicle from the front bumper to the back bumper will be covered under this warranty. There will be certain parts, which will not be made a part of this warranty. The customer must make sure that he finds out all the items, which are not being covered under this warranty.

Named component warranty – this covers all the parts of the vehicle which are likely to suffer from mechanical breakdown and mechanical failure.

Warranties, which are sold by most companies, will be almost the same as those which have been mentioned above, but the term bumper to bumper will be used. Brake pads and windshield wipers are never covered under extended warranties. Roadside assistance and travel reimbursement are usually a part of all auto warranty packages. Sometimes free accommodation and meals are also made available in case the car breaks down somewhere.

Obtaining extended warranty after manufacturer warranty has expired – Many people are not aware of the fact that after the warranty which has been given by the manufacturer at the time of purchase has expired, an extended warranty can be taken on the car. Coverage is normally given for vehicles which have not yet covered 100,000 miles as per the odometer. A vehicle whose warranty has been completed is more susceptible to a mechanical failure when compared to a new vehicle. This is the reason why vehicle inspections will be needed in certain cases.

Processing of claims – When the vehicle breaks down or it needs some kind of servicing, then it has to be towed and taken to the nearest licensed service center where the service agreement will have to be shown in order to use the services. Once the problem with the vehicle has been found out, the claims administrator will be contacted and he will have to authorize the repairs and see whether they can all be covered. The amount for the claims will be paid directly to the repair garage and the customer does not have to pay anything.

Instant quote for extended warranty – check out all companies which are offering extended warranties and their experience when it comes to paying claims should be examined.

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