Types of Extended Warranties
You enjoy traveling in your brand new car. But as you explore the world, something unexpected happens. You might have an accident that leaves you scratch-free but makes a bad impression on your car. No problem – you’re covered by a warranty. As you examine your policy, however, you meet major disappointment. You realize too late that your warranty has just expired.
This grim scenario happens to a lot of people every day. Just when they need help, they discover that their auto warranty has become a useless piece of paper.
This is where an extended warranty comes in. This is an insurance policy that protects the owner of a car from costly repairs after the original warranty has expired.
“An extended warranty is a safeguard against unexpected vehicle repairs. An extended warranty helps to ensure that repair costs are covered without undue financial stress. Many extended warranties are also transferable to future owners. This works in favor of the seller as it may increase the resale value. For the buyer, it gives additional peace of mind when purchasing.
The transfer fee is usually minimal. In addition to repair and resale benefits, many extended warranties offer other automotive-related benefits such as towing, car rental discounts, lost-key lockout services, and trip-interruption benefits that can help defray unexpected expenses if your vehicle breaks down far from home,” said JDPower.Com.
There are several types of extended warranties that cover many different things. If you’re looking for a comprehensive coverage, you can’t lose with a bumper to bumper warranty, This type (which is also called a new car warranty, a wrap program or an exclusionary policy) covers most auto parts and components except for a few “exclusionary” items.
For full details of what’s covered, read your policy. Often the things covered include roadside assistance, towing, wear and tear and electronic equipment. Despite its name, a bumper to bumper warranty doesn’t cover a car’s bumpers.
“Bumper to bumper coverage is only available to what the industry calls ‘new cars’. In most cases these are vehicles that have up to 50,000 miles. You will pay a small surcharge for miles above 12,000 but the additional protection is well worth it,” according to ConsumerAutomotiveResearch.
Com.
If you can’t get a bumper to bumper policy because you have a mid-range car with 50,000 to 100,000 miles, a stated component coverage or an inclusionary policy might be more to your liking. This covers most major parts and is a good alternative to a bumper to bumper coverage.
The most basic warranty is the power train coverage that simply covers the car’s power train. Included in this type of warranty (also known as a plus or enhanced policy) are the engine, transmission, drive axles and drive shaft.
In some cases, you can extend the coverage to other parts as well. As always, read the fine print to know what you’re getting.
For more information about auto warranties, check out http://warrantyheadquarters.com.