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Wednesday, December 28, 2011

Extended Warranty for Cars

Extended Warranty for Cars

An extended warranty on a car is simply a contract between the car owner and the car warranty company, where any repair costs you incur are covered by the company. Auto warranties are not a type of insurance. Far from it; they are simply a type of warranty that extends the original car warranty as offered by the manufacturer. So, essentially, if the car warranty you got when you bought the car was for four years, an extended car warranty can add two, three or more years to the warranty period, ensuring that you remain covered longer.

Buying extended warranties for the first time can be tricky, even confusing. You must understand what it is you want covered and then look for a warranty that provides this type of cover. Buying an extended warranty does not excuse you from buying auto insurance. You still to have your car covered under the best auto insurance policy you can afford, since these are two different products.

It is important to read through the contract of the warranty, in order to fully understand what is covered under the warranty and what is not. A good warranty contract will list all the services and parts covered under the contract. Be very wary of contracts that are vague or those that give a blanket sort of assurance. It is also common for a warranty contract to state the standard routine maintenance the car owner must stick to in order for the warranty to remain effective. Failure to do so may lead to a rejection of your claim application.

To ensure that you get the best deal on auto warranties, always buy your warranty from a reliable company. There are many car warranty companies selling warranties directly, without going through a dealer. By buying directly through a car warranty company or their agent, you get a better deal as the rate tends to be lower.

A lot of motorists are not sure whether they require an extended warranty, until they run high repair costs without one and realize just how much they could have saved. Buying extended warranties is pretty much like buying insurance. You are simply protecting yourself against a risk which might happen in the future. Much as this risk may never happen, there is still a 50% or more chance of it happening.

To lessen the strain of paying for extended car warranties, use the car rebate to pay for the warranty. This way, you won’t have spent a dollar on the warranty. This is for the lucky motorists who get rebates on new cars. If you are not so lucky as to get a rebate and do not have cash on you, you can finance your purchase. A lot of warranty companies provide zero percent financing, which can help you keep your car protected even when you do not have money on the ready.

The best time to purchase extended warranties on your cars is immediately after buying the car. A lot of motorists assume that as long as they have the manufacturer’s warranty, they can forego the extended one until the original warranty expires. However, the rates are higher when you buy an extended car warranty after the original one expires. You will save more if you buy extended warranties earlier, preferably when the original one is still in effect.

Do not worry if your car warranty has already expired. You can still get an extended car warranty. The same applies if you have bought a used car. However, most car warranty companies carry out inspections on used cars before selling auto warranties on them. This they do to ensure that the car is clean enough and bears no pre-existing mechanical issues. Usually, they will screen the car, which is basically checking for any mechanical problems.

If the car is found to have any problems, the company may refuse to sell you the warranty. In most cases though, all you have to do is get the car checked and repaired. If it passes the screen test this time round, the company will sell you the warranty.