All you need to know about auto warranties
Cars, insurance, and warranties isn’t there always too much to worry about? Here is a guide to all you need to know about auto warranties – what are they? How are they different from insurance? And where can you get it?
Read on to know more.
What is an auto warranty?
A car warranty is meant to pay for mechanical breakdowns caused by malfunctions or manufacturing defects. Typically, it covers both the cost of the part and the labor involved in repairing the vehicle. Most new automobiles come with a new car warranty issued by the manufacturer. But you can also get a used car or extended warranty either from the manufacturer or a third-party insurance company.
How is a warranty different from insurance?
The most fundamental difference between warranty and insurance is the kind of protection they offer. As stated earlier, warranties pay for the cost of fixing malfunctions or manufacturing defects. On the other hand, insurance helps pay, usually in part, the cost of repairs and damages due to accidents or natural disasters and even mitigate loss due to theft.
What should you pay attention to while getting a warranty?
Finding the proper warranty can be difficult because of all the considerations you will have to factor in. All auto warranties are not the same, so read the paperwork carefully and make sure you get all the fine print out of the way. Make sure your company of choice has a 100% money-back guarantee so that when you are dissatisfied with the service, you get refunded in full. Find out about deductibles. Like with insurance, there is a specific deductible you will have to pay to get a warranty. Ensure you are comfortable with the amount fixed or choose a company that allows you to select a fee. Also, make sure that there is a deductible per repair visit and not for each repaired item. The latter will increase the amount you pay each time. Finally, confirm the warranty is truly bumper-to-bumper, and no vital components are left out.
Where can you get a third-party warranty?
While manufacturer-provided warranties are easily identifiable, finding a third-party warranty is a more tedious task. Here are some of the most respected and popular warranty services.
Endurance is one of the most well-known and prestigious warranty companies. It is backed by AM Best, an A-rated insurance firm. Endurance gets nothing but praise from its customers for its direct and speedy customer service. There are different tiers of coverage, six to be exact, ranging from basic coverage to a factory-level one, and most warranties from the firm last eight years.
There are so many reasons to “o-love” this company’s services. Cars up to 10 years of age are given warranties under three tiers from Olive. Flexible deductibles and a fixed monthly payment make financial planning easier for a car warranty with Olive. There is no cooling-off period, and there is also the advantage of the warranty being available nationwide. With Olive, you can get a warranty entirely online in under 90 seconds. Visit their website to learn more.
Protect My Car
It’s all in the name! Established in Florida in 2005, Protect My Car is one of the most popular vehicle service contracts in the country. Payment terms are flexible and lengthy (between 36-60 months), which is longer than most other third-party warranty companies. Additionally, there is a 30-day money-back guarantee. There are three levels of coverage – Supreme, Select, and Driveline – each suits vehicle owners with different needs. Be aware that vehicles older than 13-years cannot take advantage of the extended warranty. However, this matters little, for there is an alternative – you can consider the Ambassador Maintenance Plans for these vehicles.
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