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Auto
Extended Warranty
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What is
an auto extended warranty?
An
Auto extended Warranty
provides "peace of mind" benefits with every
agreement, free Roadside Assistance, car rental
reimbursement and travel interruption protection, and
many more benefits.. all under one roof.
An auto extended warranty is a vehicle service
contract between the car warranty company and you.
When you buy your extended warranty, you pay few extra
amount to get the warranty extended on the new car.
They pay for repairs covered by the contract. Extended
auto warranties are NOT insurance policies. Your
service contract money is deposited in a "claims
reserve account". An auto extended warranty is
the most confusing, profitable product car dealers
sell. The language is tricky, and if you don't
understand contracts you're in trouble. Auto extended
warranties extend the original manufacturer's car
warranty.
Do I
Require an Auto Extended Warranty ??
You
must decide that. The cost to repair today's complex
vehicles is rising. If you getting into a 60
month auto lease, you should buy a car warranty, you
are responsible for all repairs. Auto extended
warranties cost a little now to protect yourself from
inflation later when you need repairs. Like
insurance, if you don't buy it, you'll be looking over
your shoulder. The most common repairs are A/C,
transmissions, and electrical. One covered failure can
pay for the cost of the extended car warranty.
Types
Of New Auto Extended Warranties
Extended
auto warranties are of 3 types. Some car
warranties cover mechanical breakdown, while better
warranties cover wear & tear, and overheating.
- Bumper
To Bumper Extended Auto Warranties (Also Called
Exclusionary Auto Warranties)
You'll have little to worry about, a true bumper
to bumper car warranty, usually top of the product
line. Nearly all parts on the car are
covered, except the "exclusions list".
These auto warranties are called
"Exclusionary", they cover so many parts
the contract only lists which parts are excluded.
- Intermediate
Auto Warranties ("Named Component" Auto
Warranties)
If you have ABS, power, turbo, etc., an
intermediate level car warranty is good. These
cover more items than basic auto warranties.
Dealers falsely refer to these "Named
Component" car warranties as "bumper to
bumper", then name the components covered.
These auto warranties are thorough, but leave out
parts.
- Big
Ticket Item Coverage
For used vehicles, this car warranty covers major
items. These car warranties might not cover
wear and tear, radiators, ABS brakes, Turbos,
power, etc.
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