Common Areas Of Concern On Warranty Plans

warranty plans

If you're buying an older model car, then extended warranty plans might be a smart idea. However, many newer vehicles from General Motors, Acura, BMW, Saab, Cadillac, Volvo, Lexus and Jaguar have replaced their old 3 year/36,000 mile warranty plans for 4 or 5 year/100,000 mile plans. In addition, many used cars have warranties that transfer over from the original owner to you, so be sure to find out the details. You can avoid classic auto scams by doing your research online and getting an extended warranty quote or two, prior to visiting the dealership.

One common problem people run into is to fail to read and understand the agreement before they get work done. Knowing the right questions to ask your warranty company is crucial, experts say. For instance, ask if you can get the work done at any shop, or do you have to look for a certain certification, or in some cases return to the dealer? Additionally, is your car covered for "wear and tear" damage or just mechanical failure?

You should have a comprehensive list of all the parts that are/aren't covered! Sometimes you'll get a "bumper to bumper" warranty that covers everything except for the wear items, like brakes and tires, while other times you'll get a "power train" warranty, which covers the engine and transmission. While it's rare to find a company that offers coverage for everything, you should ensure that some of the most expensive repairs will be taken care of.

Secondly, you should find out if there are certain stipulations that would make you ineligible for utilizing purchased warranty plans. In some cases, consumers have had their claims denied because they continued driving after their engines overheated or they attached unauthorized tow hitches to their cars. Sometimes, if you don't get regular oil changes or fluid top-ups, then you could be at risk for vetoing your right to coverage as well. Know the rules and stick to them!

Warranty plans can be intimidating at first, especially because there are so many companies to choose from. You may want to try AutoWarrantyReviews.org or another comparison site. Look at how long the warranty company has been in business and how many claims they've addressed, their BBB rating, if they have clients like car dealerships and banks, if they fully explain their plans with details, if they offer written terms and conditions, if they cover all 50 states (in case you're traveling and have a problem) and if there is some sort of money back guarantee.