Vehicle Warranty
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Vehicle Warranty Coverage
Vehicle warranty coverage is pretty simple to understand: it's similar to an insurance plan (we can say it's actually an insurance plan) that will cover the costs of any mechanical repair that the insured vehicle will need as long as the repair regards a part that is covered by the warranty (you can find out more about covered parts on your warranty contract, or just calling the company).
Exactly as you do with your car insurance you pay an annual premium to be covered: every contract is different in details, anyway we can say that most vehicle warranty coverage plans cover more or less the same components.
Some companies limit the number of claims you can file and some others allow you to file unlimited claims.
There are some things that you should know before buying a warranty:
Does the vehicle you're buying come with a warranty? When is it going to expire?
If you're buying a new vehicle then it comes with a factory warranty that covers the vehicle probably for three years or 36.000 miles whichever comes first.
If instead you're purchasing a used vehicle it may come with some kind of warranty provided by the dealer, or even still carry the manufacturer's warranty.
Always ask the dealer if there is any coverage on the car included in the price.
You can bet dealers will try to sell you their extended warranty, they earn huge commissions on extended warranties, in fact you'll see the difference between the price for the extended warranty asked by the dealer and the price you get requesting a quote online ( where there's no commission for the dealer ).
The commission might be as high as 50% of the entire price.
How much does the vehicle warranty coverage cost?
This question is pretty easy to answer, you just have to request a free quote online to get an idea of what you can expect to pay for your vehicle warranty coverage.
You can expect a price anywhere between $350 and $2500 or even more. Prices vary a lot depending on make, model, year and the condition of your vehicle.
If your price sounds too high you might choose the pay a deductible for every repair you'll need, this way the yearly premium should be lower enough.
Which parts are covered by the vehicle warranty?
You might expect every part to be covered by the warranty but you're absolutely wrong.
Many parts like shocks, tires, brakes and any other parts subject to wear and tear usually aren't covered.
What is covered and what's not covered by the warranty is specified in the warranty contract: ask for it before finalizing the purchase.
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