Benefits Of Purchasing An Extended Auto Warranty
Benefits Of Purchasing An
Extended Auto Warranty
Most every product on the market has an optional extended warranty available with it. It is the insurance package that covers the "what ifs" and "just in cases" that may occur. An investment as costly as an automobile is worth the additional expense of such a warranty. These supplementary insurances fit into two categories, exclusionary contract and listed component contract coverage.
The exclusionary contract is the more comprehensive plan, and is also known as the bumper-to-bumper plan because it covers more than it excludes. It usually comprises normal wear-and-tear replacement like batteries, brakes, oil changes, and tires; whatever is not mentioned is covered under warranty. Usually vehicles registering less than 60,000 miles qualify for this type of coverage.
The listed component contract is more involved and specific, but provides less coverage, overall. Each system that is covered is listed individually, and only the parts listed within that system are covered. Age and mileage on the vehicle dictates what will be covered. More effort and scrutiny are necessary, but it is worth the extra coverage for older vehicles or vehicles with higher mileage. More than likely, it will be to your benefit to cover your wear-and tear-expenses out of pocket, and obtain coverage for more costly replacements and repairs.
Manufacturer's warranties usually cover a new vehicle for approximately thirty-six months or 36,000 miles, whichever comes first. Both expire faster than you may think, and end right when your vehicle may begin to experience difficulties. An extended auto warranty should not run concurrent with a manufacturer's warranty. Double coverage is redundant and you should extend the warranty when the manufacturer's coverage is due to expire. Though you may not have an occasion to use these warranties, they are still more economically advantageous than paying for probable repairs. The peace of mind alone is worth the investment. It is better to have it and not need it, than to need it and not have it.
This philosophy is most aptly applied to drivers who are likely to have problems, such as drivers with learner's permits or newly licensed drivers. The majority of these drivers are young adults, and having additional coverage can only help in any situation they may find themselves. Extended warranties may be helpful to inexperienced drivers attempting to gain a sense of responsibility without becoming overwhelmed.
Extended car warranties may also be transferred from driver to driver. This could be an excellent selling and buying point. As with all purchases, the buyer must beware and carefully analyze the warranty itself. The warranty may need to be transferred in writing, or may include a processing fee. Other warranties may not be transferable at all, and become null and void when the vehicle changes hands, no matter how much time or mileage remains. Other issues may concern time sensitive documents that need to be notarized or submitted to proper authorities. Inspection of the vehicle by a specific party may also be necessary.
Take the extra time to investigate and choose an auto warranty that fits your needs and your budget. It will provide coverage in the short run, and increase the resale value of your vehicle in the long run.