sure you know who is offering the warranty. Is it the car manufacturer
or a reputable after-market company? Make sure you know who it is that's
underwriting your policy. After your first mechanical breakdown is not
the time to find out who your underwriter is!
what is covered and for how long. This is always the most misinterpreted
area of any warranty. If you are not clear on the definition of terms
such as power-train, drive-train, or any electrical components covered,
then get with someone who is and get educated. Also, remember that mileage
and time conditions of the warranty may vary for different systems of
what your responsibilities are in the warranty agreement and follow them.
Remember that a warranty is an agreement, not an entitlement. There are
certain things you must do! For example, make sure you know what systems
require service and follow the manufacturer's recommended mileage intervals.
Keep complete records of your service work (this is especially important
when it comes time for a claim).
out the amount of the deductible in the event you have to file a claim.
Also, how is the payment made to the repair facility? Some warranty companies
have the insured pay the repair facility, then they reimburse the insured.
Other companies pay the repair facility directly.
sure you understand what is wearable (maintenance items), because
your extended warranty will not cover such items. Some examples are brake
shoes/pads, oil or air filters, tires, shock absorbers or struts, belts
and hoses, just to mention a few.
extended warranty industry has come a long way in the last
twenty years. Many horror stories have been told about unsuspecting
customers buying warranty plans that did absolutely nothing
for them when it came time to file a claim. Not only did they have
to pay for the repair, but they also were out the money they
had paid for the "warranty". However, there have been
many positive changes in the warranty industry. There are warranty
companies today that offer extended coverage even on private
sales! This was unheard of previously! Giants in the industry such
as AIG (American International Group), with offices in over
130 countries and jurisdictions around the world, have stepped into
this arena and filled a need that had been ignored.
summary, if you plan to keep your vehicle for a long period
of time (beyond 36 months), and you want that peace of mind of a
warranty beyond the factory coverage, then follow these tips and
enjoy the benefits of an extended warranty.