Automotive Extended Warranties

Also known as an extended service agreement, an extended warranty is a contract through which a manufacturer or a third party warranty providers carry out the necessary repairs on mechanical break downs for a given duration of time as stated in the contract. The vehicles come with an original warranty that usually covers the car for a period of three years or 36,000 miles, whichever comes first. The users can then purchase an extended car warranty to cover the repairs when the original warranty expires.


The coverage of the extended warranty varies from one provider to another and therefore the car owners need to check out the details to ensure that they know what they are paying for. It is recommended that the car owners read the fine print of the warranties, as it will provide them with the insight on the type of repairs covered. This will enable them select those warranties that are suitable to their needs and they will be in a better position to reduce the out of pocket costs they will have to foot.

The car owners are required to consider a number of things before they settle for an extended warranty. One of them is if they are planning to keep the car especially after the end of the original warranty. If they are hoping to keep it for along time, then they should buy a warranty before the original one expires to avoid being uninsured.

They will also need to consider their financial responsibility. This will deal with the deductibles they are required to pay when they have purchased the extended warranty. They have the option of selecting the per repair deductible which will require them to pay the deductible each time the vehicle is repaired. They can also select the per visit deductible which will require them to pay the deductible each time they visit a repair shop. It is the best choice because some time the vehicle may require more than one repair work.

The warranties come with different payment options. Some of them will pay the repair shops once the repair is done while others will require the car owners to pay the repair costs and then they will be reimbursed later. To be reimbursed, they will need to send the receipt to the administrator of the warranty who will give the authorization. The other consideration they need to check is whether the warranty can be transferred to a new owner, especially if they are thinking of selling it.