You brought your first car, wow! Such an amazing feeling of being behind the wheels of your new love. But, have you checked your car warranty or have you even considered extended car warranty?
The term car warranty means a coverage that will pay you in case your car suffers any damage. However, this does not mean that it will last forever. There is normally a period for which this works. It could be a period of time – say 3 years – or a certain amount of distance travelled by a car – say 60,000 miles. Normally, there is also a date against which this time or distance is judged. In most cases, it is the date when the car was made. Normally such coverage deals with any defect in your car that may have caused it to work badly.
Within the warranty period if the car suffers any damage or malfunctions because of faulty parts and the like then the car maker would repair those parts or replace them without you having to pay a single cent for the same.
Extended Car Warranty
It could always happen that the car does not suffer any kind of damage within the initial warranty period. But that does not mean that it would not at a later date. This is why so many car owners buy extended warranties to make sure that their costs stay covered as and when needed.
These days, there are many companies that provide the kind of warranty that you got when your car was a new one. This has indeed made life a lot easier for them, without the shadow of a doubt. The main aim of such coverage is to safeguard your car in case of any electrical or mechanical issue and also keep your own money secure in the process.
Not all Extended Warranties are the same
Yes, just like any and everything else in life, not all extended warranties are alike. The main area of difference is always the coverage provided in these plans.
There are some warranty plans that would only provide coverage for certain items in your car. Now, you need to keep in mind that your car is made up of 5000 parts! A list that covers only 150 items among them is not going to be sufficient now, is it? You can also be sure that in most cases the terms and conditions of your warranty may not always be the best as well. They might not provide you the kind of value that you are looking for your investment. You need to choose the most comprehensive policy that your money can buy.
Who is paying for the Repairs?
You would see in several cases that most of the warranty companies are not providing or reimbursing the full money you have spent for repairing a part. For this, they would use complex legal words. One of such words is a betterment cause, which makes sure that the company pays only a part of your expenses based on how old your car is and how much it has travelled. The company may also tell you that they would cover the costs of all your parts. Even then, you would need to take things with a pinch of salt.
This is because they would never cover for related expenses such as labor expenses. When you take into account the fact that labor costs have increased in many places this is a serious exclusion as well. You also need to take into account the fact that there are some other costs in this regard such as recovery, travel, and hotel expenses that are important in this regard. Even, in case, the warranty company says it would cover this cost you would need to be sure if they are paying you the entire amount or not.
The Benefits of Car Warranty
At a basic level car warranty helps you by letting you avoid costs needed to repair your car. This is especially true of the ones that you had not expected in the first place. The car warranty service providers normally offer you a whole range of programs to choose from and based on your needs you can make a choice. There are normally two major kinds of coverage – component coverage and full coverage. Normally, when you opt for component coverage you choose to cover the costliest parts. As part of the extensive coverage, you cover the entire car with the only exception being the wear parts.
Normally, these programs are really flexible and as such the period of coverage depends on the condition that the product is in. these policies also provide you cash in case your car has broken down and are valid across entire countries. With the help of these policies you get plenty of mental peace and as such you are able to plan properly as well. Such coverage also increases the worth of your car. Basically, such coverage allows you to drive free of any worry and that too for a longer period of time.