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What Does An Extended Warranty Cover On A Car

Apr 13, 2022

What Does An Extended Warranty Cover On A Car?

You should always check services and products of a warranty before getting one. It will provide all details about what does extended warranty covers on car?

How The Idea of a Car Warranty Came to Be?

The concept of car warranties can be traced back to the early 1900s. During the initial days of the automotive age, the guiding philosophy was caveat emptor, or buyer beware. Cars were a jumble of clumsily tooled parts made of dubious materials, and quality varied depending on the day and the supplier. Warranties were virtually nonexistent until Henry Ford revolutionized the industry with the assembly line, allowing for more consistent parts. When the Model T was introduced in 1908, it was sold with a personal guarantee from Ford.

By the 1950s, the 90-day warranty had become the industry norm. Manufacturers noticed the necessity for a mileage limit and set it at 4,000 miles as the definition of wear-and-tear items became more specific.

The auto business was starting to resemble the market we know today by 1960.

By the mid-1960s, the Big Three manufacturers' engine or powertrain coverage had been extended to up to five years or 50,000 miles due to competition. On the other hand, Longer warranties proved too expensive for automakers churning out shoddily constructed vehicles. Chevrolet produced more than one million Impalas in 1965, a record that has never been surpassed – but the quality was uneven.

Today, the automotive industry has evolved significantly, with most manufacturers and third-party providers offering extended warranty options. Many consumers now ask, "What is the best extended car warranty?" or "What does it actually cover?" The answers are outlined below.

Coverage Features Of a Basic Car Warranty

To understand why an extended warranty might be beneficial, it's helpful to understand what a car warranty is. Manufacturers and salespeople constantly promote the importance of contracts without clarifying what they are. As a result, there is a lot of misunderstanding regarding what they cover.

On paper, car warranties are pretty straightforward: Car warranties are written assurances from the manufacturer or a third party to repair or replace problems in the vehicle you purchase.

An automobile warranty is intended to provide you, the buyer, with some assurance. You have a method to get the vehicle mended if something goes wrong, especially if it's brand new. For example, basic manufacturer warranties allow you to take your car to an authorized garage and have the problem rectified for free.

Extended Car Warranty

Extending an auto warranty is a vehicle service contract purchased from manufacturers and dealerships. After the manufacturer's warranty has expired, independent providers will cover the cost of repairing or replacing specific parts on the vehicle for a specified period or a specified number of miles for a fee.

A service contract can usually be obtained before your warranty expires, even though purchasing an extended auto warranty is shared when purchasing a new vehicle.

What is the process through which an extended auto warranty works for car owners?

Any car owner knows that vehicle problems can often be more complex than those covered by a manufacturer's warranty. These problems can continue long after the manufacturer's warranty has expired, leaving you on the hook for repairs or replacements.

This is where an extended auto warranty can be beneficial. These service contracts are intended to cover the expenses of some services performed outside the manufacturer's warranty scope or after the warranty period has expired.

Consider the following scenario: you purchase a new electric vehicle covered by a three-year manufacturer's warranty. After three years of car ownership, the onboard computer in the vehicle experiences a problem; however, the manufacturer's warranty does not cover these types of repairs. But if you had an extended auto warranty to cover it, you could save hundreds of dollars in out-of-pocket repair fees.

You should recognize that extended warranties are no different from any other sort of automobile guarantee. In truth, there are some significant differences between factory and extended warranties that you should be aware of. Despite this, they all perform the same fundamental task: they offer to repair or replace the car provided certain conditions are met.

Getting an Extended Warranty

Getting an Extended Warranty is a simple process involving no complications. Consider purchasing a manufacturer's extended warranty to protect your investment, especially for used vehicles that are not covered by a certified pre-owned vehicle warranty (CPO warranty). You will most likely be able to purchase it through a local dealership.

If you want to purchase an extended car warranty from a third party, you may usually do so online. When you use a third-party service, you have the freedom to shop and compare other solutions more extensively. Some service providers may even provide you with a free quote to have an idea of how much the job will cost in advance.

Things that an Extended Warranty Covers

This portion of the warranty describes all of the services and products covered by the warranty. It is common practice to include a list of inclusions with a warranty containing a high number of exclusions to assist you in understanding what is covered by an extended warranty.

Some warranty plans are highly detailed in their inclusion list, listing the specific parts that are covered by the warranty. Alternatively, you may find that some providers are more unclear with their list, referring to general automotive components such as the engine or drivetrain rather than specific components.

Obtaining Some Financial Assistance for Repairs

If you choose to take advantage of an extended warranty, you will need to go through a claims process to get repairs in advance, should they become necessary. The warranty provider may reject your claim. In this case, you'll have no choice except to pay out of pocket or explore other options. In contrast, if the repair is covered by the warranty, it is less likely that this will occur in the first place.

Objections arise for a variety of reasons, including the following:

  • The warranty does not cover the cost of repairing the item under warranty.
  • The warranty excludes coverage for the underlying cause of the issue.
  • There has been no proper and regular maintenance performed on the vehicle.
  • Before purchasing the warranty, the consumer was not advised of a pre-existing fault with the vehicle.
  • The problem was caused by the modifications made to the vehicle.

It makes it easy to keep track of routine maintenance with records and prevents the need for unnecessary vehicle modifications from occurring.

Consider the possibility that you prefer to tinker with your vehicle or utilize it for a specific purpose, such as race car driving. In that situation, you may require a specialized warranty to offer coverage for such acts as you described above.

You can take the car to an approved auto shop to have the repairs made after your claim has been approved. In contrast to insurance, you most likely have to pay anything to an approved auto shop linked with the warranty business.

What does the Extended Warranty not cover?

Extended warranty plans cover a variety of parts and repairs, each of which is specific to the plan in question. Some businesses adhere to stringent standards similar to those found in manufacturer warranties, while others do not. When a program is all-inclusive, other companies may provide coverage for different components and repairs as well.

The list of inclusions and exclusions is the easiest way to determine what each warranty plan covers and what it doesn't because each warranty plan is unique:

The fact that a warranty does not cover something is sometimes more understandable than detailing what a warranty does cover. At this point, the use of an exclusions list becomes necessary.

Exclusion lists indicate which parts are not covered by the guarantee and which parts are. If you need to have one of these items repaired or replaced, you will be required to contribute to the service cost from your pocket.

Scope

In addition to the inclusions and limitations, you should take note of the warranty's scope, which is as follows:

There is always something to blame for a problem. Extended auto warranties will be more restrictive regarding the issues they will cover. Unless it's a standard factory extended warranty, it's unlikely to cover anything other than manufacturer-caused faults. Some extended car warranties do a better job of outlining what is and isn't covered than others. Still, you may have to rummage around in the contract before you sign to understand what is and isn't covered.

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