Extended vehicle warranty–Know about different arrangements

After rejecting and declining initial offers of an extended vehicle warranty, many car owners sooner or later discover that the cost of one repair is much higher than investing in a warranty plan.

Even worse, there are some vehicle owners who accept the fiscal burden of an auto warranty, only to find out that the mechanical trouble they experience is not covered by their warranty plan. You can easily avoid these difficulties by understanding what extended warranties cover, the differences in the plans available and what all they do not cover.

An extended auto warranty is often best considered as a pre-paid repair contract. It obligates the company that issues warranty plan to pay for repairs that are included in the plan opted by you. Often, these warranty plans are
offered by vehicle manufacturers or retailers. The contract usually specifies the number of kilometers and/ or the time duration for which it is valid along with the mechanical system that it covers.

Here are some of the most common arrangements:

  • While some plans cover mechanical breakdowns, there are others that cover replacement of parts that have to be either replaced or repaired; some plans comprise everything that has to be replaced or repaired, other do not include technical service bulletins that are released by car manufacturers for notifying vehicle owners model-specific issues that require attention.
  • There are several companies that offer roadside assistance in case a vehicle encounters mechanical breakdown. In most cases, it covers towing of cars and might also include meals and lodging until the owner reaches home.
  • The most basic car warranty plan is a power train plans that covers the CV joints, engine, transmission and turbo, in a nutshell, all pats through which the oil runs. A more advanced and better plan includes all thee above mentioned, steering rack, ball and pump joints and the radiator. The next in row is a plan that comprises all of the above mentioned together with electrical systems such as power doors and windows and air conditioning. At last, is the bumper to bumper warranty that covers almost everything excluding drums, shoes, pads and rotors.
  • There are some warranty plans that also include the repairs in case the car owner locks himself our or loses key.

The choice is entirely that of a car owner. These are just some of the many arrangements that are available for you to choose form.

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