An extended warranty can be described as a service contract or insurance policy against expensive vehicle repairs. While your regular warranty is included with the cost of your car, an extended warranty is a separate product. Some extended warranties can be rolled into the total purchase price, while others are separately billed on a monthly or annual basis.
If your vehicle experiences a covered breakdown, you pay only the deductible to have it repaired. For example, if you have a $250 deductible and your extended warranty covers engine failure, you will pay only $250 while your extended warranty picks up the rest of the cost for your engine to be rebuilt or replaced.
Not all extended warranties are the same, so it is important to do your research. For example, a per-visit deductible means that you only have to pay once for all covered repairs performed at the same time, while a per-repair deductible means that you pay separately for each repair. Some extended warranties only cover repairs done at a dealership. Some require you to pay out of pocket and then submit the bill for reimbursement. Some are transferable if you sell the car, while others end at that time. Some companies are known for their honest and ethical business practices, while others make it nearly impossible to have repairs covered.
An extended warranty can be a great option for those who plan to drive their vehicles long after the manufacturer’s warranty expires. Do your homework, make sure you understand exactly what you are getting, and select the warranty that best meets your needs.
If you are tired of getting the runaround and being treated like you haven’t got a clue, we invite you to try Colchin Automotive instead. Give us a call at 303-431-5421 for all of your automotive needs!