How Do Extended Auto Warranties Work

As you no, some situations can starts quite well and then end in an unexpected and unfortunate way. However, when it comes to the relationship you have with your car, this doesn't have to be the case. There is a type of auto warranty that is made specifically to make the car live up to your expectations. It is often referred to as an "extended vehicle warranty" and can help you make sure you don't lose money on costly repair work.

An extended auto warranty is actually a vehicle service contract or car service contract, as it is not included in the price of the main purchase. It will help cover the costs of repair work on your vehicle if something breaks down.

There are a few things to consider before purchasing an extended warranty:

* What is the Factory Warranty period for the automobile you are buying and how long do you plan on keeping it?

Many used cars come with a manufacturer's warranty at the time of purchase. Consider how long that coverage is for and if you plan on keeping the car after it expires.

* How reliable is the car that you are buying?

Examine at the car model's reliability record by doing research online. It will give you a general idea of what problems commonly occur with this type of car and how much the repairs cost.

* Is there a deductible and how much is it?

You should read the terms of the extended vehicle warranty carefully before you decide to get it. Some vehicle service contracts have a deductible each time you take your car to be serviced, while others will make you pay an amount for each repair. This will be much less than paying out of pocket for a break down, but it can certainly add up if your car has multiple breakdown.

* Do I have to pay up front?

Most auto warranties will immediately pay the repair facility for work done on the car, while others require you to pay the claim upfront and later reimburse the customer for the cost of the claim.