Auto Warranty Extension
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Extended Warranties On Cars
Extended Warranties: An Overview
When motor vehicles are bought new, they typically come with a warranty cover that is provided by the car manufacturer. This warranty commonly covers many of the car’s components for a given period of time, usually thirty six thousand miles or three years. Following the expiry of the initial warranty, any repairs that the car may require will be taken care of by the car owner. At this point, an extended warranty cover may come in handy. The extended warranty acts like the original warranty, but for a specified period following its expiry. This covers the vehicle from unexpected repair costs. This is particularly useful for used car buyers, as these older cars can have faulty components more frequently than newer cars. The extended warranty can save the new owner of an older car quite a lot in repair costs that they would have otherwise been required to bear.
Extended warranties do not stretch to meet all cars and not all types of services and repairs are covered. Usually not included in these service contracts are tires, brake pads, and belts. Vehicle maintenance and proper storage of receipts is still encouraged. The two main forms of extended warranty are those provided by after market (third party) companies and those provided by vehicle manufacturers. An authorized dealer can offer an extended warranty in much the same way as a vehicle manufacturer would, where repairs are undertaken at the dealers’ workshops for covered repair. Aftermarket warranties depending on the type of cover require car owners to have their cars repaired at certified repair facilities or dealers. Authorizations are sought from the repair facility that a certain car part is covered under the policy signed with them and if so, the repair is authorized. The mode of payment in these cases may differ, as some companies pay for the repairs directly to the repair facilities while others require the car owner to pay for the bill and wait on reimbursement.
Ahead of any extended warranty contract signing, ascertaining the reliability of the warranty overseer is the first requirement. Making certain that the company is reputable is also very important. The company that is offering the extended warranty should be one with a solid base. This can be verified from BBB reports, ask a mechanic, ask friends, and research the length of time this particular business has been operating, and so on. Reviewing the contract for extended warranty services is very important; as unscrupulous companies hide unfavorable clauses within the fine print in the hope that incoming clients do not read the contracts carefully. The claims procedure and the repair authorizations procedures are very important, so check that these procedures are satisfactory. Also, check for deductibles, whether per repair or per visit, as these can add onto costs. The nature of the coverage is also important, as some companies do not cover common wear and tear problems. Should the car owner decide to sell the car on after a while, a transferable extended warranty is best, as a selling point.
About the Author
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Timberwood Auto Center, San Antonio TX
