Sunday, June 10, 2012

Common Questions on Auto Extended Warranty Coverage

Do you have questions concerning extended warranties for cars or trucks? Trust me - you are not the only one. Many people do not know how extended car warranties work or why they’re important. These simple but very cost effective warranties, however, can save you plenty of money if you know exactly what you want out of an aftermarket auto warranty. Here are a few questions that most people ask when they are looking into extended warranties:

1. What is an extended warranty?
Some people call this a ‘vehicle service contract’ and it is an extension of coverage that a manufacturer’s warranty normally provides. About 95% of new vehicles come equipped with a 36,000 mile or 3 year (whichever comes first) warranty. When this warranty expires, that is when an extended warranty kicks in if you happen to have one. These useful warranties provide the owner with coverage for repairs for a certain amount of time or a certain amount of miles.

2. Are there certain repair shops that I should take my car or truck? With many extended warranties, you can take it to any repair facility that is licensed. All they have to do is contact the administrator of the warranty company and they will handle the payment. Be sure you ask about this, however, as some dealers who sell extended warranties will require that repairs only be done at the dealership.

3. An owner has had no vehicle issues yet. Does he/she need this type of warranty? Ever heard the saying, “I am never sick, so why do I need health insurance?” Same thought process applies here. Health care costs are continuously rising and so are vehicle repair costs. No one wants to take their car in for repairs and hear that it is going to cost an arm and a leg so make sure you have an extended warranty handy.

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