Before investing in a financial product such as an auto extended warranty, it would be a good idea to have an understanding of exactly how it works. This will also give you enough information on how you can choose the best possible auto warranty provider as well.
What is an auto extended warranty?
Think of it as service contract or a kind of agreement between you and a warranty company. This makes it the company’s responsibility to pay for all the repairs that have been covered in your contract. Basically, it implies that you are protecting your wallet and your financial future with specific regard to automobile repair costs.
Difference in components
As with any insurance plan, the components of one auto warranty plan will differ from another in:
- The timeframe
- The components or parts of the car that they cover
- Coverage of components that have suffered from a ‘breakdown’ or wear and tear and
- Additional support by way of roadside assistance and towing services and so on.
Of course, they will also differ by way of the amount that is payable as deductibles by you.
What is covered?
Your car may enjoy coverage by way of original manufacturers’ warranties. So the next logical question is whether you need an extended warranty. You should look at the future when your vehicle gets older and therefore will see the lapsing of the original warranties. Your repair costs will run higher and higher as time goes by. So why not get an extended warranty plan that can help you cater for this time period?
Pay attention to the financial terms and conditions
Companies like AA Auto Warranty clearly detail the terms. It is extremely important for you to read the fine print especially the part that relates to the deductibles, process of claims reimbursement and so on. This will help you plan for your finances when it comes to extended warranty plans as well.
For instance, it could be something as simple as being restricted to take your car only to a certified repair facility rather than one of your choices. Some warranty providers will take care of the repair bill completely while others may require you to make an upfront payment and will then reimburse you for the same.
There is no doubt that the processes of one company will differ from the other and therefore it is an extremely good idea to get into details as far as the workings of the plan are concerned. This will allow you to enjoy complete peace of mind as far as owning your vehicle is concerned.