5 Hidden Elements of Extended Auto Warranty Coverage
Some extended auto warranty companies don’t operate much differently from other types of insurance companies; the aim is always to take your money and find clever ways of not fulfilling their end of the bargain. You must be on your toes and spot hidden clauses early. You also must ensure that a company isn’t excluding certain things from coverage—covertly of course.
The list below will help you flesh things out and help guarantee that your extended auto warranty will be sound.
1) Non-Compliance With Fuel-Change Guidelines
Most extended auto warranty companies will render a claim void if the repairs are connected to some part that uses fluids. They especially like to find evidence that you did not change the fluid according to the manufacturer guidelines. It’s important therefore to have your oil change done at the prescribed time. When you make this fluid change, do a round on the other fluid-using parts (brakes, transmission etc.). And don’t forget to keep an up to date service history—this will be your evidence.
2) Wear And Tear And Non-Coverage
Most repairs that your vehicle will encounter will be as a result of wear and tear, yet a few extended auto warranty companies don’t like to honor claims that result from this. Many will even try to offer you ‘wear and tear’ coverage as an added on option. This of course is a tad unfair but it’s your job to check these things out at signing. If the potential policy you’re taking up has exclusions for wear and tear, find out how you can be covered.
3) Exclusions For Towing Outside Prescribed Limit
Most cars are able to have a trailer fitted but each car has a recommended weight limit. Go beyond this and you could void any warranty claim since most extended auto warranty companies will have exclusions in this regard. This particular point is more about your education than a means of ensuring protection. When using your vehicle to do any towing be very careful; and if you do develop problems as a result of towing something very heavy, be upfront about it. Whilst you may not get settlement on one particular part, it will save you from voiding a claim entirely.
4) Exclusions For Commercial Use
The typical auto extended warranty is written around personal use of a motor vehicle. Your daily commute to work for instance will be the hinge upon which your policy is written. If you then use your vehicle outside of these prescribed allowances and something goes wrong, an extended vehicle warranty company may not honor your claim. Their exclusions (though you may not see them) are specific and are based on years of industry experience. If you are going to use your vehicle for any type of commercial activity always make sure you can cover it under the extended warranty.
5) Failure To Look After The Vehicle Properly
The oil change every few thousand miles or so is an important part of maintaining a good-running vehicle, but this is routine. There are other maintenance elements that people sometimes miss and it’s these that can really affect an extended warranty claim. Things such as timing belt changes, transmission fluid and so on don’t take place as frequently as oil changes and sometimes one can forget them.
Extended auto warranty companies like to seek out these deficiencies and rest their denying of claims upon them. Your job of course is to ensure that these maintenance functions are adhered to (as per manufacturer’s recommendations) and properly documented (service history sheet). Doing these two things will ensure full compliance and your claim is less likely to be denied.
There’s only one thing worse than not having extended auto warranty coverage and that is finding that your existing coverage can’t pay for something. Don’t let this happen to you, use the guidelines above to ensure you don’t get caught out by exclusions on your extended auto warranty.