Auto warranties come is as many flavors as ice cream, so it pays to be an educated shopper. Unfortunately, if you rely on warranty salesman to have your best interest in mind, you're going to be in big trouble. It's my experience that most salesman are paid commissions on sales and this puts them in a position of having their best interest in mind, not yours.
All auto warranty contracts are divided into several sections and while the format may vary, they all contain the same information. If all the information isn't in the document, it's not likely a contract, but a sales brochure. Be certain that you're given the actual warranty contract and not an abbreviated version.
Most auto warranty contacts will have at least the following sections: Definitions, Terms and Conditions, Coverage, Filing a Claim, Service Department Guidelines, Cancellation Procedure, and Exclusions.
Each section is important and you need to be able to determine if a section is favorable or not. Once you have evaluated each section, you're ready to make a decision. Securing an excellent auto warranty can be easy if you take this approach. With an understanding of auto warranty contracts, there's no reason to depend solely on what you're told by a salesman.
Let's look at the Definitions Section.
In this section you'll find the term "failure" and/or "mechanical breakdown". Warranties providing less coverage only pay for mechanical breakdown . These extended auto warranties define mechanical breakdown as a defect in parts and workmanship of the manufacture's supplied part, or a defect that makes the part unable to perform the function for which it was designed. It's reasonable to believe that if a part was poorly manufactured, it will break within the first few years when the vehicle is still under the factory warranty. The broadest auto warranty coverage will also pay for a failure of a part. Failure coverage includes repairs needed because of wear-and-tear. Usually defined as: "a failure will be deemed to have occurred when a covered part has worn beyond the manufacturer's tolerances". Mechanical breakdown extended warranties will not cover repairs needed because a part's performance has gradually deteriorated because of normal wear and tear, unless a mechanical breakdown has occurred first.
Some companies don't offer failure coverage while others only offer failure coverage until the vehicle reaches 50,000 miles.
Considering as much as 25% of all repairs needed are because of wear-and-tear failures, this auto warranty coverage is important. Extended auto warranties without wear-and-tear coverage are often priced the same as those that include it, so be careful and know what you're getting.
Last year there were 37 new companies selling auto warranties and by the end of the year 28 were no longer in business. How do you protect yourself? First, make sure you are buying from a direct seller rather than a broker or car dealership. Buying direct from a warranty company is the best route. There's absolutely no reason to have a middleman involved as they bring no added value to the table and you incur more risk and expense. Second, the length of time they've been selling warranties is important. I recommend at least 10 years. There are many things you can do to protect yourself and get the best car warranty, but it starts with these two things.
Before making that decision, it is important to understand the warranty and what value it has for you. An extended automobile warranty will give you protection past the dealership warranty. Aside from many benefits and features, an extended warranty will give you the flexibility and comfort of having your car repaired at the licensed center of your choice.
There are several benefits to an extended warranty. They include 24 Hour Roadside Assistance, repairs for any mechanical breakdowns, replacement of oil or any other fluids and towing to a repair shop in the event of an accident. There are car rental and trip interruption benefits with an extended warranty.
As with any contract, make sure to read the fine print and know exactly what your extended auto warranty service plan covers before purchasing. You might find there are many items not listed within your warranty.
Ask yourself what it is you are looking for in an extended warranty, other than Roadside Assistance, car rentals and emergency towing, because sometimes those are the only perks being offered.
The internet can be an important tool in researching auto warranties. Be cautious while reading different websites, but take note of all of the tips on purchasing these extended auto warranties online. Many companies will offer warranties online, just make sure you have found the on that fits your needs.
It's never a good idea to go with the first company you come across. The best company to go with would be the one that keeps its balances high enough to cover any repair costs that might be accrued in the future. Warranty brokers, insurance groups and your car dealership all offer auto warranties.
It might be in your best interest to go with an outside company when purchasing your warranty. If your dealer is offering you an extended car warranty, it's usually at your expense. This yields an increase in their profits by including the warranty in the financing for your total purchase cost of the vehicle.
If you decide to shop around for different sources that can provide your auto warranty, consider a credit union or Internet sources. Buyers typically can negotiate within one-third of a margin of the auto warranty. Expect to pay less towards an extended warranty if your vehicle is low on mileage and age.
Finally, make sure to read the service contracts that are included with the manufacturer's warranty. On average these will provide coverage for three years or 36,000 miles or whichever is first. If you typically find yourself trading in your car just about every three years, then an extended auto warranty probably wouldn't make much sense. Within those new years cars experience little to no trouble.
Yet if you like to hang on to your purchase past the three year or 36,000 mile mark, really consider purchasing a new car warranty. It might be the best thing to help extend the life of your car.
Both Tom Andrews & Christina Costa are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Tom Andrews has sinced written about articles on various topics from Cars, Used Car. For twenty-five years, Tom Andrews sold auto warranties and insurance policies direct to consumers. He knows the difficulties faced by consumers when buying auto warranties and the scams that are waiting for them. Retired, he now writes to inform consumer. Tom Andrews's top article generates over 720 views. to your Favourites.
Christina Costa has sinced written about articles on various topics from Home loans, Cars and Debt Reduction Consolidation. Christina Costa, a freelance automotive writer, recommends Equotegrabber where you can get an auto warranty quote online in seconds!