Auto Warranty Resources

Here are the resources for auto warranty that we found interesting. Please feel free to browse and contact us if there is a good warranty site that is not here.

What is Auto Warranty?

A policy that covers a vehicle against mechanical failures and breakdowns. Also know as a Vehicle Service Agreement, Extended Service Agreement, Mechanical Breakdown Agreement, or Extended Warranty. This type of extended warranty will pay for your vehicle's covered repairs based on the terms of the warranty agreement.

Why Buy an Auto Warranty

When it comes to protecting the investment you have in your vehicle there is no better way than an extended warranty. Buying an auto warranty is buying a service contract that guarantees the warranty company will pay for expensive repairs and not you.

The first question most people ask is what if my car never breaks? According to ConsumerReports.org, “the average three year old car has 55 problems per 100 vehicles”. That’s not very surprising to anyone who has ever owned a car.

It’s also not very surprising that car repairs are expensive, and the newer and more sophisticated cars are becoming increasingly more expensive to fix. The average cost to repair an air conditioning system for example is $825. Over the next five years repair costs are going to increase about 35%. So that $850 air conditioner repair today is going to cost about $1,150 to repair when it breaks 5 years from now. One covered repair can pay for the entire warranty!

Types of Extended Auto Warranties

Extended Warranties can range from full Bumper to Bumper protection all the way down to covering only the vehicle’s powertrain, and everywhere in between. The auto warranty industry has broken it down into three major categories and all extended warranties will fall into one of these. They are Bumper to Bumper, Stated Component, and Powertrain.

An Insider’s Secret You Should Know

When is a used car not a used car? When it comes to extended warranties, the industry uses the term “New Car” to mean any vehicle that is still covered by a portion of the manufacturer’s warranty. You could have bought your vehicle from the third owner with 40,000 miles on it and the warranty companies still consider it a new car if it is within the manufacturer’s warranty period. So don’t think that just because you have 40,000 miles on your vehicle and you didn’t buy it off the showroom floor, that you have to settle for a “used car” warranty.

Bumper To Bumper Coverage

A Bumper to Bumper warranty, also known as a new car warranty, a wrap program, or an exclusionary policy, is the most comprehensive coverage you can buy. They cover so many parts and components that the policy will only list the items that are not covered. Hence the term “exclusionary” since only the items excluded from coverage are listed. Most bumper-to-bumper policies will also include, or offer as an option, added benefits and coverage such as 24/7 roadside assistance, towing, car rental reimbursement, travel interruption protection, wear and tear coverage, seals and gaskets coverage, and hi-tech electronic equipment coverage.

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.

An insider’s tip is “Bumper to Bumper does not cover the bumpers”. Contrary to the term “bumper to bumper” these policies do not cover every single part on your vehicle from bumper to bumper. Make sure you read the policy to see exactly what is not covered. They are however the most extensive coverage you can buy.

The consumer guide to uncovering the best value in auto warranties and repairs.

Stated Component Coverage

Stated Component coverage, also known as an inclusionary policy, is a standard extended warranty that covers most of the major parts and components on your vehicle. These policies will list all items covered or included in the warranty, hence the term “inclusionary”. Some stated component policies will offer as an option additional benefits and coverage.

These are a very good alternative when your vehicle does not qualify for a bumper-to bumper policy and they are a very good value. Typically these apply to mid-mileage vehicles with 50,000 to 100,000 miles.

Powertrain Coverage

Powertrain coverage is a basic warranty and only covers, as the name refers, the vehicle’s powertrain. This would include the engine, transmission, drive axles and drive shaft. Some powertrain warranties, also known as plus or enhanced policies, will extend the coverage to a few additional parts and components.

A powertrain warranty will cover you for the big ticket items and the really big repair bills. A powertrain warranty is more appropriate for a high mileage vehicle or a mid-mileage vehicle if you are only concerned with the big ticket repair bills.

Top 10 Warranty Tips

1) Always Read the Contract Before You BuyBe sure to see and read the warranty policy you are going to buy. If the company you are dealing with will not show you the contract before you purchase walk away, the reputable ones always do.

2) Know Where Repairs Can Be Done

All good extended warranties allow you to have your car repaired at any certified facility. Do not buy a warranty that restricts you to only their repair shops.

3) Know How Claims Are Paid

Most warranty companies pay the repair shop directly by credit card. Some warranties require you to pay the repair in full first then submit a claim to be reimbursed. The better warranty companies will pay the repair shop directly.

4) Know the Deductible and How it's Applied

Is the deductible a per-visit or a per-repair? Per-repair can cost you more out of pocket if multiple problems are diagnosed when in for a repair.

5) Understand How the Expiration Mileage is Calculated

Some warranties expire "when your odometer reaches" the policy mileage. Some expire "in addition" to your odometer miles. As a general rule, bumper-to-bumper policies expire when your odometer reaches the policy mileage, and stated component and powertrain policies expire in addition to the miles already on your odometer when you purchase the policy.

6) Know the Cancellation Policy

Most warranty policies can be canceled, however some cannot. Typically you will have 30 to 60 days to cancel a policy and get a 100% refund. After the initial period you will receive a pro-rated refund based on how many miles or months you were covered and any claims filed.

7) Is There a Transfer Option

A transferable warranty will increase the resale value of your vehicle. Companies typically charge a small fee of $25 to $50 to transfer the warranty.

8) Get An Inspection

Have your vehicle inspected by a certified mechanic and have them put it in writing. This usually costs less than $100 and will avoid any questions or denials by the warranty company claiming a "pre-existing condition".

9) Keep a Copy of the Policy in Your Car

You'd be surprised by the number of people that have a breakdown and don't have the warranty company's phone number or roadside assistance number with them. Always keep a copy in your glove box.

10) Perform Routine Maintenance

Always perform the manufacturer's routine maintenance as recommended in their guidelines. Not only does this lessen the chance of problems occurring but you can also avoid a possible claims denial.

Auto Warranty Sites

• Extended Car Warranty - Enjoy free roadside benefits with an extended car warranty plan from 5 Star Warranty.
• Car Warranty - NAG has a wide variety of car warranty plans that are both comprehensive and affordable.
• Extended Warranty - Warranty Headquarters has an array of affordable extended warranty plans for your car or truck
• Car Warranty - Protect one of your biggest investments with a car warranty plan from Endurance Warranty Services.

If you like this page, you may like this page too: Resources