Monday, July 9, 2012

Before Buying An Extended Auto Warranty, Ask These Questions

Before Buying An Extended Auto Warranty, Ask These QuestionsExtended warranties are known as safeguards against a number of unexpected repairs to your vehicle. These types of warranties will help you to ensure that any repair costs are therefore covered without any financial stress.

Many of the extended warranties on the market can also be transferable to future auto owners. This works in the favor of the person selling the vehicle as it increases the resale value. As for the purchaser, it gives peace of mind knowing the vehicle is covered. The transfer fees are usually small.

In addition to that, the resale and repair benefits are huge. Many warranties will offer many more automotive-related benefits like towing, lost-key or lockout services, car rental discounts, and trip-interruption benefits which can help defer unexpected expenses if the vehicle breaks down.

What does the car warranty cover?

Auto warranty coverage will cover most of the major vehicle components however they aren't nearly as comprehensive when compared to a "bumper-to-bumper" warranty, which comes with new vehicles. Even the best comprehensive extended auto warranty available on the market is going to have exclusions for certain items like the windshield, light bulbs or headlights. "Wear items" are considered as vehicle parts that will deteriorate over a normal course of time from normal every day use. These will include brakes, shocks and tires, which are always going to be excluded.

Does my car really need this type of warranty?

Extended auto warranties are ideal for people that are on fixed budgets or for people who do not want to be caught off guard with expensive auto repair bills. If this is something that describes a situation you are in and you are planning to keep your car or truck longer than the expected length of the manufacturer's warranty, then an extended warranty contract could be the right thing for you.

Here are some tips you should answer first when you go to look for an extended car warranty:

- Always read contracts before you decide to buy them

- Know where you can have you repairs done

- Be aware of how claims are done

- Be observant of your deductible and how it is applied

- Know your expiration mileage and how its calculated

- Understand your cancellation policy

- If you have a transfer option, make sure you are aware of its process

- Have your inspection up to date

- Have a policy in your vehicle

- Make sure you keep up routine maintenance