Auto Warranty Coverage

Posted on October 30th, 2009 by admin

Auto warranty coverage is very simple to understand: it’s similar to an insurance plan (well it’s actually an insurance plan) that will pay for any mechanical repairs needed by the insured vehicle as long as the part that needs to be replaces or repaired is covered by the warranty (you will find which parts are covered on the warranty contract, or just calling the company ).

As you do with your car insurance there’s an annual premium to pay to be covered: every contract is different in details, however we can say that most auto warranty coverage plans cover, more or less, the same components.

You should know few things before buying an extended car warranty:

If you are purchasing a used vehicle, does it come with a warranty? When is it going to expire?

When you buy a new vehicle then it comes with the manufacturer’s warranty that, usually, covers the entire for three years or 36.000 miles whichever comes first.

Instead if you are buying a used automobile it may come with some kind of warranty provided by the dealer (included in the price, don’t let them sell you an extended warranty that you will pay way more than you could do ), or even still carry the manufacturer’s warranty.

Ask the dealer if the vehicle still has a residual warranty ( which, as said above, must be included in the price ).

You can bet dealers will try to sell you their extended warranty, they earn huge commissions on extended warranties, you’ll see the difference between the price for the extended warranty asked by the dealer and the price you get requesting a quote online ( where there’s no commission for the dealer ). Click here to compare quotes online.

The commission might be as high as 50% of the entire price.

How much does the vehicle warranty coverage cost?

There’s no standard answer for this question because every vehicle is different, many makes, different mileage and age, however you can easily find out the price of the warranty comparing quotes online. Click to compare prices.

You can expect a price anywhere between $300 and $2500 or even more. Prices vary a lot depending on model, make, year and condition of your car.

If your price sounds too high you have the choice of adding a deductible, this way the yearly premium will be sensibly lower.

What’s covered by the extended auto warranty?

You might expect every part to be covered by the warranty but you’re completely wrong.

Many parts like shocks, tires, brakes and other parts subject to wear and tear usually aren’t covered.

What is covered and what’s not covered by the warranty is always specified in the warranty contract.