Essential Things You Should Know About Extended Auto Warranties
Extended auto warranties are one of those things many car owners hear about, but never quite take the time to get to grips with. If you are looking to educate yourself about this very important element of car ownership, then stick with me for the next few minutes as I explore it in details. You’ll get a thorough understanding of the 6 most important things related to extended auto warranties.
Let’s First Define The Extended Auto Warranty
In very simple terms, an extended auto warranty is an agreement made between the warranty company and the owner of the vehicle being placed under warranty to honour all claims for repairs that arise out of some part or parts going bad on the motor vehicle. This agreement is highly distinguishable from auto insurance because it doesn’t offer extensive cover for unforeseen eventualities—only for specific costs that are pre-determined. A good example is a warranty on tires; this can be easily provided for given the very nature of wear and tear on tires associated with driving a car. Depending on the level of coverage you desire, you may find a company that covers everything from tires to
transmission or windscreen replacement. The actual contents are always determined by you on a cost and needs basis.
Limits And Extent Of Coverage
There are two basic types of coverage under extended warranties. The first is breakdown warranty coverage which covers parts that suffer from some time of breakage during use. This type of coverage is not as common as “wear and tear” coverage which is easy to estimate for warranty companies and therefore easier to price. Now in terms of specifics, you find all or some of the following covered under both types of warranties:
- Certain Engine parts
- Labor required to effect repairs
Most cars will have been sold initially with what is called a standard manufacturer’s warranty. This is a guarantee that the parts used in the making of the vehicle will have a certain period of usefulness. If any part fails under this guaranteed period, the manufacturer is legally obligated to replace or fix the defective or broken part. Manufacturer’s warranty is usually quite limited in terms of scope and length of coverage, hence the need for most car owners to get extended auto warranty.
Deciding If An Extended Auto Warranty Is Right For You
There is no standard test you can apply to determine if you should get extended auto warranty, but the following factors are helpful in coming to a decision:
- Is the manufacturer’s warranty over on the vehicle you are looking to acquire or already acquired? If this is the case, then getting an extended warranty can help you stave off some of the heavier repair and maintenance costs that are likely with an older vehicle.
- Does the vehicle have an inherently high cost of having repairs and parts replaced? This is the case with certain makes and models of vehicles and so if you are acquiring such a vehicle, an extended warranty might just save you some trouble with ownership
- Do you use your car to take long trips regularly? The more you use a vehicle, the more likely it is that something is going to break, and wear and tear will occur faster too. An extended warranty can act as a buffer against the eventual costs that will arise from frequent use.
Other factors like your cash flow will play a part in the type of coverage you get, but you should always weigh up the cost of not getting extended warranties when making a decision.
What Should You Do If The Manufacturer’s Warranty Is Still Valid?
This is sometimes the case with vehicles that are either brand new or fairly new. Most buyers figure they don’t need to get an extended warranty and don’t bother, but the truth is that getting one right now with coverage still in place is still a prudent move. For one thing it won’t cost you as much since the vehicle is new, and some types of warranties are transferable. This means if you ever need to get a newer car, coverage under an old policy can be moved over.
But there’s an even bigger reason to get extended coverage even with manufacturer’s coverage still in place. Manufacturers’ warranties don’t always cover everything, and certain things like tires can wear and tear outside of the prescribed life given by manufacturers. When this happens, an extended warranty can give you the sort of protection that will save you money and time.
Should You Pay Attention To Deductibles?
Like insurance policies, costs are usually offset by what is called a deductible. This is the amount you have to find before the policy kicks in and takes care of repairs etc. The deductible will usually be set in conjunction with a market standard and some input by you. If you know that you will have some reasonable amounts of cash in the longer term, then you can go in high with your deductible. This will reduce the cost of your warranty premium in the short term. On the other hand, if you feel that things may not work out well in the longer term with cash flows, you are always better off sticking with the recommended deductible amount.
Where To Get The Best Deals
There used to be a time when getting an extended auto warranty meant going through a dealer, but thanks to the internet, that has changed. Today you can access at the click of your mouse, quotes from hundreds of warranty companies. But that’s if you have the time to wade through them all. A much quicker way to get a good quote is to use a third-party recommendation service. This can be done by visiting any of the well-established review websites and letting them guide you as to the best company to go with. Matter of fact, you needn’t even leave this website, because some of the best recommendations can be found on our front page.
Make the best of our recommendations and get an extended auto warranty that will save you a ton of cash for those times when things stop working on your car. It happens to all of us, so it helps to be prepared.