There are many businesses that start out with a lot of fanfare and they close down with an equally light whisper. There are many situations which look very good on the outset, but they will not seem so rosy later on. But it is not necessary that this is the way that things will turn out between you and your car. Every new vehicle has an auto warranty, which will make sure that the vehicle is made to meet all your expectations. This is also known as an extended warranty since it will ensure that the car does not turn from something which is of high value to something, which has no value at all.
An extended warranty is an insurance policy which is taken on your vehicle. It will help to protect you from the expense of any unpredicted or unforeseen failures. But the term extended warranty is something which misleads a lot of people since actually there are no warranties at all. Expenses like regular maintenance and repairs will be covered for a particular time period under the insurance policy. An actual warranty will be included in the price of the car or any other product. An extended auto warranty is actually a contract for repair and maintenance services and extra money is charged for this.
An extended warranty can be secured at the time of purchase of the vehicle. Another warranty can be purchased when the current one expires. An extended warranty is the best option for people who would like to be prepared for any kind of situation and eventuality in the future. It is very sensible to have an extended warranty contract especially when the cost of car repairs has been increasing steadily. But it is very difficult for some people to decide whether they actually need an extended warranty on their car and if they need one, many people do not know which is the right plan for them. There are certain criteria which will help you to decide which is the right plan for you.
If you own a vehicle which already has an extended warranty, you need to find out if the period of the warranty is for the complete time period for which you are likely to own the car. If the vehicle that you are buying is brand new and it has just been released from the factory, then find out about the warranty which is being given by the factory before thinking about taking an extended warranty. If you buy a vehicle, which has a factory warranty of three years, and if you plan to keep the car for three years and sell it after that, then there is no point in taking an extended warranty. But if you plan to continue with the same car even after the factory warranty has expired, then it is always better that you get an extended auto warranty. If you are buying a used car, then make sure that the dealer gives you a warranty. If you are buying a used car, which is of a very recent model, then it is possible that the factory warranty is still valid on the car. But this is also dependent on the number of miles, which have already been driven on the car. There are many companies which will extend the current factory warranty on the vehicles, which have been previously owned.
Make sure that the model of the car which you purchase, is extremely reliable. Try and talk to other people who have purchased the same model and ask them how reliable it has been. But the fact that you are getting positive feedback from everyone you ask does not guarantee that you will have a very small repair bill. You will get a general idea of the quality of service and this will help in deciding as to whether you need an extended warranty.
An independent company which issues warranties can issue an extended warranty or the warranty can also be issued by the company which manufactures the cars. But it is very important to know exactly who is issuing the extended warranty so that you will be able to judge the warranty which is being issued. It is always better to take an extended warranty which has been issued by the manufacturing company since it is very easy to implement such a warranty whenever it is necessary. But it is definitely cheaper to take a warranty from an independent company. But the financial position of the company which is issuing the extended warranty should be checked out properly. You can check as to how Standard & Poor has rated them and this will help you to decide as to how well they will be able to pay your claim. It is better to choose a company, which has a standard ‘A’ rating from Standard & Poor.
The policy on deductibles should be properly checked before you actually get the extended warranty issued on your car. It is not only the total amount which has to be considered, but also the amount which will be charged for each visit and for each repair will also have to be taken into account. There will be a fixed rate which will be charged for every visit regardless of how many parts are repaired in one visit. All these may sound like very minor differences but they make a lot of difference when you are given the final bill for payment. If you are being charged $100 for each part that is repaired, then you will be charged $300 when the air conditioner, fuel pump and alternator are being repaired. But if you are just being charged $100 per visit, then you can get all the three parts repaired or $100.
Make sure that you check whether the warranty can be transferred. The person who owns the warranty might want to sell the car at a later date. He has to know if the existing warranty can be transferred to the new car, which he wants to buy. There will sometimes be a clause in the contract for an extended warranty which will state that the repairs should only be performed at the places of certain specific dealers. But this can sometimes prove to be very inconvenient. You should make sure that you get a warranty where your car can be repaired at more than one service center.
You should also be clear about what are the kinds of repairs and maintenance which are being specifically covered under the contract of the extended warranty. A breakdown warranty will only cover parts, which have been broken. But not all the parts in a car are susceptible to breakage. There are certain parts in a car which will have to be replaced since they are subject to wear and tear and make sure that the extended warranty will cover the replacement and spare parts. There are many warranties which do not cover the overheating of a vehicle. If the overheating has happened due to some problem with the radiator, then there might be a huge repair bill which is coming your way. Every little nuance of the extended warranty contract should be studied in detail before signing on the dotted line.
There are certain kinds of extended warranties where the bill will have to be paid by the holder of the warranty and he will have to submit the bill and claim for the reimbursement. This process could actually take many months before the money actually gets in your hands. It is better to have a warranty where the amount is paid directly to the dealer. All the above-mentioned points should be taken into account before deciding which is the right kind of extended warranty for your car.
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