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Auto Warranty Plans
An auto warranty is an agreement between the owner of the vehicle and a warranty company. The warranty company agrees to pay for repairs, identified in advance, during the specified warranty period. A warranty period is generally based on car mileage; anywhere from one thousand to several tens of thousands of miles. The longer the coverage, the higher the price of the auto warranty. Warranties are often purchased in lump sum amounts, but certain companies also offer monthly payment plans.
Auto warranties are generally considered a wise purchase, since the cost of car repairs can easily exceed thousands of dollars. However, that reasoning only holds true if the auto warranty covers the repairs needed. Auto warranty contracts have a lot of fine print. Understanding the scope of coverage is imperative to making a wise purchase. You also need to make sure the company offering the auto warranty is reputable – a warranty company that goes out of business will not be there to issue auto claim payments. Simply put, not every auto warranty is created equal.
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The Basics of Auto Warranties
Cars are expensive investments, whether you like to purchase new or pre-owned. In protecting that investment and to avoid future repair expenses on your car, you may want to consider purchasing an auto warranty.
Most new and some used cars are covered by some sort of warranty when purchased. For example, new cars are usually covered by a manufacturer’s warranty. These warranties vary greatly and are limited in duration. They may cover a variety of repairs until either a time limit or mileage limit such as three years or 36,000 miles. Once you reach that time or mileage limit, the warranty will either totally expire or much of what it covers will be void.
Some manufacturers also offer various program warranties on specific used or pre-owned cars, usually called certified used or something similar, that extend the original manufacturer’s warranty or parts of the warranty.
If you plan on keeping the car past the life of the manufacturer’s warranty, you may want to consider purchasing an extended warranty. Extended warranties are insurance policies against expensive, unforeseen repairs. In essence, extended warranties are actually service contracts. They cover expenses incurred that your warranty doesn’t cover.
Unlike manufacturer’s warranties, extended warranties are purchased separately from your car. They can be purchased either through the original manufacturer or through a third-party, independent warranty company. In some cases, you’ll receive offers to purchase extended warranties in the mail or over the phone from the manufacturer just as the original manufacturer’s warrantee is expiring.
Extended warranties are all different. They each differ on what repairs are covered, how much is covered, duration of the coverage and cost of the warranty. Before purchasing any extended warranty, determine what is still covered on the warranty you possess, determine how long past the life of the warranty you’ll keep the car, what you want covered and for how long.
When researching the details of the warranty you want to purchase, look for information on the policy’s deductible, whether the policy is transferable if you sell the car and whether repairs can be done anywhere or only with specific shops. Also, look for specifics on what is covered and what is not. For instance, does the warranty cover breakdown of parts as well as wear and tear? A warranty that only covers breakdown requires the part to break before the warranty will pay to replace it. A wear and tear policy will cover parts that need to be replaced because they are too worn to work efficiently.
Purchasing an extended warranty can be a smart investment. Don’t forget to research the warranty specification and the companies offering them online before making the purchase.
Auto Warranty In The News
When the 991.1 GT3 first went on sale, a run of 785 had been delivered when Porsche had to stop selling the car due to a string of engine fires. Now owners of those cars can breathe easy because they have a tremendous warranty backing up their mighty mills.
Published: Fri, 11 Aug 2017 01:00:00 GMT
Dodgy new car retailers who mislead consumers about guarantees, warranties and fuel consumption promises have been put on notice by Australia’s competition watchdog. In a draft report, Australian Competition and Consumer Commission (ACCC) found many.
Published: Thu, 10 Aug 2017 14:02:00 GMT
Aside from the new-car smell, one of the most compelling arguments for buying a brand-new vehicle is the peace of mind that comes with a manufacturer warranty. While new vehicle quality has improved dramatically across the board in recent decades and is.
Published: Wed, 09 Aug 2017 06:08:00 GMT
A: A manufacturer cannot require you to use their branded replacement part for routine maintenance unless i) it is provided at no charge as part of a prepaid service plan or warranty repair, or ii) they are the only supplier of the component. When it.
Published: Fri, 11 Aug 2017 16:10:00 GMT
It’s even better than Porsche’s certified pre-owned warranty, which covers the car for 50,000 miles after purchase or until 100,000 miles on the odometer, whichever occurs first. Per its founder Rob Carr, the concerned owners group didn’t make any requests.
Published: Fri, 11 Aug 2017 06:27:00 GMT
There are a number of companies in the world that address the concerns of their customers over their product or parts of it by extending the warranty on it. It seems that German luxury sports car maker Porsche is one of these companies, based from its.
Published: Fri, 11 Aug 2017 15:59:00 GMT
Dodgy new car retailers who misguide consumers about guarantees, warranties and fuel usage promises have been put on notice by Australia’s competition watchdog. Australian Competition and Consumer Commission (ACCC) discovered lots of makers have failed.
Published: Thu, 10 Aug 2017 04:33:00 GMT