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Coverage Provided by an Auto Warranty

When it comes to an auto warranty, people have two options. Whenever a brand new vehicle were being purchased, the manufacturer automatically provides the buyer with a warranty. While this is common practice, consumers need to understand that the coverage provided by a manufacturer’s warranty varies. As an example, sometimes the warranty would cover all non-wear items for a period of three years or 36,000 miles, whichever comes first. Then, sometimes the auto warranty would offer repairs needing to be made for 10 years or 100,000 miles, again whichever comes first.

While the sticker price, make, and model are all factors in the decision-making process for a new vehicle, people also need to weigh the pros and cons of the auto warranty. Typically, the manufacturer’s warranty offers the consumer bumper-to-bumper coverage, meaning everything is covered on the vehicle with the exception of things that wear out such as tires and brakes. The second type of coverage is for the power train, which means any parts required to keep the car moving would be covered to include the transmission and engine.

Along with the auto warranty offered by the manufacturer for a new vehicle, another option for used cars is the extended warranty. With this, the consumer could choose an extended warranty option on a new car that would go into effect once the manufacturer’s warranty expires or purchase an extended warranty whenever buying a used car that has no manufacturer’s warranty. Just as with the auto warranty associated with a new car, extended warranties also vary, so shopping around and making comparisons before choosing would be to the consumer’s advantage.

In most cases, the features of all warranties are broken down into categories. As an example, there is the duration of the warranty, meaning the time it covers the associated factors of the vehicle based on type of warranty. Typically, new warranties go from three to ten years while an extended warranty would last anywhere from two to five years. In addition, both types of warranties also have a specific amount of miles that would be allowed.

Another option associated with an auto warranty is scheduled maintenance. In this case, the provider of the warranty might offer the buyer free, scheduled maintenance but only for a specific amount of time. In addition, the type of maintenance would likely be limited to things such as oil changes, tune-ups, tire balancing, and so on. For any company that offers this benefit as a part of the warranty, the consumer should be 100% certain the offer of free service is worth the cost of the warranty. After all, getting something free is great but if the warranty is more expensive for getting free maintenance, it might not be worth it.

Then, when buying a new vehicle, the manufacturer’s auto warranty is required by federal law to cover certain safety features such as airbags and seatbelts. In this situation, the coverage would be for a full five years or 50,000 miles, again, whichever comes first. That means the most important features of the vehicle would have coverage, giving the consumer greater peace of mind.

Extended warranties can be set up with or without deductibles. The plan chosen would determine the terms of the deductibles, as well as the amount paid. Many times, an auto warranty would also provide the consumer with roadside assistance. Obviously, for anyone concerned about being stuck on the road due to mechanical failure, flat tire, or some other car problem, this would be an important benefit. The bottom line is that both the manufacturer’s and extended auto warranty are extremely beneficial but with so many variations, consumers need to look at all options before deciding.

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