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Total car protection – Types of coverage plans offered by companies

Part of investing in either used or new car is figuring out what type of car warranty policy, if any, is attached to the vehicle.  Companies offering extended auto warranties offer service agreements that protect car owners from expensive repairs that the vehicle might require from time to time. Car owners who are close to the end of the original manufacturer’s warranty should consider investing in total car protection policy. They are available in different categories – powertrain, stated component and bumper to bumper.

The most comprehensive car warranty coverage available in bumper to bumper. Contrary to its very name, it does not offer coverage for any single part of your car. There are repairs that may not be covered, thus it becomes extremely important to read the policies and terms and conditions of the extended warranty companies’ to know what all is exactly included. Also, you get to enjoy added benefits to this particular type of coverage – electronic equipment coverage, wear and tear coverage and roadside assistance.

Some vehicles are not eligible for total car protection or comprehensive warranty. Depending on the year, make or model of a car, warranty companies can turn down the application for this type of warranty or coverage. In this scenario, they offer stated component coverage.  This is an extended car warranty that covers items included in the contract and covers major vehicle parts. It is usually recommended for cars between 50,000 and 100,000 miles.

This type of policy with the least coverage option is basic powertrain. The drivetrain, engine and transmission are covered in this package. When a mechanical problem arises in one of these covered areas, vehicle can suffer expensive damage. Investing in a powertrain policy would keep your car running at a reasonable price.

Irrespective of which type of total car protection policy you choose, the key to get the best deal is reading the documents carefully. Make sure you understand the agreement and clear all your doubts before signing it. Remember, the right car warranty policy would save car owners hundreds or thousands of dollars.

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