Extended Auto Warranty Basics

All new cars are covered by a factory auto warranty, which will assure you that the new car you buy is free from manufacturer’s defects.  When you buy a new car from the dealer, the car is covered by a factory auto warranty.  In this day and age of massive auto recalls by leading auto manufacturers you have to decide whether or not the new car warranty program that comes with the car is enough protection for you.

Car manufacturers provide the first warranty that is included in the original price of a purchased vehicle.  In this case, getting an extended warranty to cover all the incidentals that will occur to you and your vehicle is better than good sense, it is a sound investment.  An extended warranty can more or less cover anything you want it to cover, so that the unknown demons of blown tires, dead batteries, or other disasters which need the aid of a towing company, can be no longer a dreaded nightmare. 

Another component of a really good warranty, not usually covered by normal warranties, would be their level of roadside assistance.  Understand the items covered in the car warranty.  Companies will provide a warranty only after considering the condition of the car.

If you purchase an extended car warranty, this does not mean that it will replace the standard warranty.  While other warranty plans will offer some or all of the cost of repairs when you car breaks down, an extended warranty does them one better. The extended warranty is a contract you make with either a dealer or an independent warranty provider with an agreement that in case your vehicle needs repairs, the cost will be covered at little or no expense to you.  If the car is sold “as-is,” then it will contain no warranty, and you will have to pay for all repairs yourself.

If the used car you plan on buying is still covered by the original manufacturer’s warranty, you may have to pay an extra fee to obtain coverage, making it a service contract.  In the case of a used car, it is advisable to check the original car warranty or the extended warranty, as it may still be in effect.  At times, a car dealer throws in an extended car warranty without bothering to inform the customer. 

Aside from this, it also makes a lot more sense to buy a used car warranty from a warranty company than from the car dealer.  Although buying a used car is often the best or only choice for you, you may want to think about whether or not the used car prices you are looking at include a warranty in any way. 

If you don't have the warranty information which is related to the vehicle you purchased, the information should be available in the owner's manual that came with the car.  The car warranty companies sign a contract with the consumer and then will pay for covered repairs outlined in the contract. 

Any vehicle, car or truck, covered by auto extended warranties is protected from defects due to manufacture for the length of time stated in the contract.  With this in mind, it is then important that you do know and understand what is stated in the warranty for your car.  Before you request a quote from a warranty company and warranty brokers, it is very important to know your car's details. 

Many warranty companies offer warranty contracts to used car buyers.  Some car warranty companies design their own auto warranties, whereas others use ready-made warranties. 

Getting a warranty for your car, whether extended or under a regular plan, can be an integral aspect of automobile ownership, not only for your own sanity, but for the sake of your pocketbook for years to come.  There are companies out there that will work with you and the benefit of using one of them to purchase an extended warranty plan for your new vehicle is that you can call them after you’ve driven your new car off the lot.  If the salesperson says the price doesn’t include the warranty, and you do choose to purchase the car you might want to buy an extended warranty of some sort. 

Customers are advised to read the warranty document carefully, as some information can be misleading.  If you are dealing with a reputable warranty company, expect to pay a fair price for a fair policy.