Auto Repair Insurance: Extended Warranties ? Myths And Facts ...

Posted by Andrew Hillin

Oct 10, 2011 8:44:00 AM

wrenchCar Running Right Peace of Mind

There's nothing more frustrating then having a broken down vehicle. Consider how much time we spend in our vehicles just getting to work. According to a study conducted by the United States Census Bureau, the average American spends more then 100 hours in their car each year commuting, (USgovinfo.about.com). This is why every one wants the peace of mind that a car extended warranty can provide.

What's a Good Extended Vehicle Warranty?
 
A common question is what does a car extended warranty (vehicle service contract) provide? Its a contract to help cover the costs of repairing a vehicle. The best plans will include coverage for repairs, parts, labor, and even sales tax for some types of repairs. Its almost exactly like the manufacturer warranty that comes with a new car when its purchased. The best vehicle service warranties will include features like:

  • Nationwide Coverage (Your car will be protected wherever you drive it in the US.)
  • Rental Vehicles Coverage (If repairs require the your car to be kept in a shop, your rental car costs are covered.)
  • Trip Interruption Protection
  • Free Road Side Assistance 
  • Mechanical Breakdown Coverage
  • Wear & Tear Protection
  • Direct Claims Payments
  • Free Nationwide Customer Service 
Myths & Reality with Car Extended Warranty

There are lots of myths regarding car extended warranty programs. These are the realities you need to look for in a good contract:
  1. You want a plan that's exclusionary and includes manufacturer warranties. Almost everything is covered, accept for the few items that specifically mentioned in the contract. Some plans are only partial or supplemental and may only cover certain parts or systems on your vehicle.
  2. You don't want to buy your plan from a third party who just sells it. Buy it from the same company who services it. 
  3. Make sure your plan includes coverage for both parts and labor. Some, plans won't pay for the labor involved with repairing the vehicle. Also, make sure the plan covers the cost of entirely new parts. You don't want recycled or used parts put into your vehicle.
  4. Get a nationwide plan where you can pick where your car gets fixed.
  5. You don't want to have to pay for a repair yourself and then get reimbursed. You want the claims to be paid directly.
  6. You also need great customer service department available to help you 24 hours a day.




Topics: car extended warranty

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