Selecting An Extended Warranty Service Requires Careful Thoughts

extended warranty plans

When consumers shop around for a pre-owned car deal, they may wonder what the difference is between a traditional automobile warranty and extended warranty service. A traditional warranty, or "manufacturer's warranty," as it's sometimes dubbed, is included in the purchase price of the vehicle. These warranties vary greatly between makes and models, ranging from 3 year/36,000 mile warranties to 7 year/100,000 mile warranties. Also, not all used cars come with manufacturer warranties attached. Extended warranty coverage is purchased through a third party at a separate price. Here, consumers will come up against different options and levels of coverage, so it's important that they do their research before arriving at the car dealership. Checking the internet for an extended warranty quote or two is probably a good idea.

First, consumers should check to find out who is backing the extended warranty service. Is it an independent company or the vehicle manufacturer? Generally, manufacturer-based used car warranties are ideal, known for the easy-to-use guarantee. With an after-market extended car warranty, the owner will need to read the stipulations to ensure that everything is covered.

For example, some companies require that owners call before the work is done. Some companies require regular oil changes and fluid top-ups for work to be covered. Depending on the arrangement, sometimes the company pays the auto mechanic directly, whereas other times the warranty company pays the car owner back later. Reading and understanding the agreement is crucial in preventing unpaid claims.

Secondly, find out exactly what is covered and what is not covered. The things for consumers to look out for here are "breakdown coverage" versus "wear and tear" extended warranty service. While a breakdown automotive warranty may cost a little less, it could be costly over time. Many parts fail due to wearing down and not outright "breaking." Not all contracts cover instances like anti-lock break system failure or engine overheating. At the end of the day, these seemingly inconsequential distinctions can mean the difference between a reasonable plan and a waste of money.

Lastly, some extended warranty service covers bonus travel expenses, which is a good perk for heavy drivers or those who frequently use their car for out-of-town or out-of-state trips. If customers pop a tire, lock their keys in the car or have a dead battery, then a mechanic will come out and fix the problem at no extra cost. In some cases, hotel rooms, meal expenses, towing fees and rental cars may also be covered. AAA-style trip routing is also available under some extended warranty plans. While it may not "make or break" the deal, per say, it's still a good feature to be aware of, if the need ever arises. After all, peace of mind is what drives most people to purchase extended warranty service in the first place.