When your auto gets more wear and tear after getting older, you certainly don’t want to do out-of-pocket investment for repairing it.
You can ask simple questions to yourself such as; what do you want to cover? How long coverage? What should be the appropriate budget?
Knowing what you are buying before you buy will give you an informed decision.
There are four basic extended warranty options: Power Train, Stated Component, Exclusionary, and WRAP. Here are more details about each option.
This plan will cover your basic components such as engine, transmission, drive axle, the transfer unit, seals & gaskets, supercharger/turbocharger, etc.
This plan makes your vehicle running without worry of simple component damage.
Stated Component Plan
It consists of a very long list of parts and components. Besides, the things listed in the Power Train plan, it includes air conditioner, brakes, cooling system, electrical components, front and rear suspension, fuel system, steering etc. In reality, it covers a lot of parts in your vehicle. Since the list cannot be provided here, you should check it with your extended auto warranty provider.
This coverage is considered the highest level of coverage available in the auto warranty market. The exclusionary coverage combines earlier stated two coverage plans -Power Train and Stated Component, and add some more.
However, it works slightly differently than the levels that these two plans give. According to its name, instead of listing what is covered, it lists what isn’t covered.These are called exclusions. The vast number of parts it covers cant be listed or remembered at a time. Also, it will make the plan less comprehensible for the customer. So, it is better to list exclusions instead take the time and detail to list out each and every item. If you want to know which parts are covered check the list, whatever isn’t listed in the list of “exclusions”, it is covered.
When you purchase a new vehicle from the dealer, the manufacturer gives an original warranty. It is usually divided up into two installments: bump-to-bumper and powertrain. A wrap policy essentially extends your bumper-to-bumper warranty.