If you are a car owner, you probably already know that cars are super expensive to fix. According to AAA, the average car repair costs is between $500 and $600. This might not sound like a lot. However, 30% of car owners don’t have the cash on hand to cover an unplanned maintenance issue. As a result, forced to use credit cards or take out loans to pay for the repair. This is not a situation you would want. It is better to keep yourself well informed about the Exclusive Auto Warranty policy to make the best use of it.
So, Most of the time. The debt you build up with credit cards, personal loans, or cash advances comes with very high-interest rates. Over the time, you might wind up paying twice the amount that the repair costs, or even more. Once you factor in the interest charges and fees associated with the debt you have taken on.
The auto warranty policy includes service contracts, Warranty Term, warranty guidelines, warranty deductible, warranty extension, warranty information, warranty coverage. Consider all the factors above before taking an Auto Warranty Policy.
Making matters worse, there’s no guarantee that your car won’t have a new issue after the current one fixed. There are chances that you’ll have to pay for several repairs throughout the year. On top of your auto insurance and loan payments.
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So, how can you protect yourself from these costly repairs?
Millions of car owners are turning to aftermarket auto warranty plans to cover repair costs. So, when their manufacturer or dealer-backed warranty runs out. If you’re wondering? Whether signing up for an auto warranty policy is a good idea, you’ve come to the right place. Our analysts at National Resource Connect have done extensive research for you on the different auto warranty policies available on the market today. Keep reading to learn about what auto warranty policy cover, what they don’t cover, and how they work. So you can decide if signing up for a policy is the right call for you.
Why Do I Need an Auto Warranty Policy?
So, when you buy a new or used car, you’re typically covered by a manufacturer or dealer-backed warranty. This means that, if your car has a mechanical issue, you won’t have to pay out of pocket to get it fixed. For example, if your power windows stop working, if the A/C doesn’t blow cold air, or even if the transmission won’t shift out of park. The manufacturer or dealer will most likely cover the repair costs.
But, the problem is that manufacturer warranties typically only last for a period of three years. Or 36,000 miles, whichever comes first. Dealer-backed warranties aren’t much better. If you drive an older car, or one that has high mileage, you’re probably not covered by a factory or dealer warranty. If you have a repair issue, you’ll have to cover the costs, no matter how expensive.
How Does an Auto Warranty Policy Work?
Extended auto warranty policies typically cover the cost of repairs after your deductible paid. How much your policy covers? What types of vehicles it covers? and how much it costs. Firstly it depends on which provider and plan that you choose (more on that later). Secondly once you lock in the right policy, you’ll then make a fixed monthly payment. It will cover you for any repairs that come up.
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What Types of Auto Warranty Plans Are There?
There are several types of extended auto warranty plans you can get, that offer different levels of coverage. So,Let’s take a look at the most common types of plans.
Firstly, If you’re looking for a plan that covers a wide range of repairs. A bumper-to-bumper policy is probably something you’ll want to look into. Bumper-to-bumper warranties typically cover mechanical and electrical issues. Therefore this give you the exposure of wide coverage. Go through the warranty information thoroughly.
Power train Warranty
In car language, a power train includes the physical components required to power a vehicle. Such as the engine, transmission, drive shafts, axles, and related items. Since power trains are generally very expensive to fix . Engines and transmissions can easily cost several thousand. It’s recommended to get power train coverage whenever possible.
If you live in an area that has a harsh winter, you might be worried about corrosion or rust damage. Which can wreak havoc on the undercarriage and body panels of a car. That’s because many municipalities throw salt on the roads when the temperature drops below freezing. And salt is deadly for the metal components on your car. If you live in one of these locations, you might consider adding a corrosion or rust protection. To your auto warranty policy, if it’s available in your area.
What Do Auto Warranty Policies Cover?
Firstly,The level of coverage you get from your auto warranty plan. Depends on the type of plan you select and how much you want to pay.
So, If you want a comprehensive plan that covers most types of engine, electrical repairs, corrosion repair, and roadside assistance. This would be considered a premium or “Titanium” or “Platinum” plan. If you prefer a basic plan that just covers the most expensive liabilities. Like the engine and transmission, this would be considered a “Bronze” or “Starter” plan. If you’re looking for something in the middle, you’ll likely want to look into a “Silver” or “Gold” plan.
Whichever plan you choose, your warranty will typically cover standard mechanical and electrical failures. Things like engine repair, transmission repair, alternator replacement, fuel system repair, exhaust and catalytic converter replacement should be covered.
Higher level plans go a step further. For example, many premium plans will even cover corrosion repair or rust damage. Which most manufacturer and dealer warranties won’t touch. What’s more, some premium plans even cover issues result from normal wear and tear. If you need to fix your suspension, or if your door handle breaks, you’ll be covered. If your power windows or power seats won’t budge, your auto warranty plan might have you covered.
More expensive plans might also offer roadside assistance. If your car breaks down, won’t start, or if you get a flat tire. You’ll be able to get help by calling your warranty provider.
What’s Not Covered By Auto Warranty Policies?
So, Auto warranties typically only cover mechanical and electrical issues. That do not result of regular wear and tear or neglect. That said, if you get into an accident, your auto warranty policy won’t cover the repair costs. This is what collision insurance is for. If you need new tires, new brakes, or an oil change. These things generally are not covered by auto warranty plans. That’s because routine maintenance does not cover under auto warranty plans.So, If they were, the policies would probably be much more expensive!
Here’s a list of repairs generally not covered by extended auto warranty plans:
- New tires, or flat tire repair
- New wheels or rims, in the event of a damaged wheel (this would be considered a collision incident)
- Any type of body or cosmetic repair
- If your stereo stops working, it probably won’t be covered
- Cracked windshields are generally not covered
- If you lose your key, a replacement would not be covered
- Car batteries
- Windshield wipers
- Repair or replacement of any custom accessories, such as a GPS or sound system
- Any damage that results from vandalism or acts of nature, like a tree falling on your car, or hail
So, Which is the Best Auto Warranty Plan for Me?
So, Our analysts at National Resource Connect have scoured the internet to find the best auto warranty plans available. Here’s what we found:
1. CHOICE AUTO WARRANTY CAN SAVE UP TO 80% ON YOUR AUTO WARRANTY! – Highly recommended for personal auto warranty. Check Your Savings Here
2. PLATINUM AUTO WARRANTY – It will connect you to many top companies. Which will make sure you pay minimum or not at all – Save thousands with award winning coverage
At the end of the day. The last thing you want to deal with is a huge bill from the mechanic that you didn’t plan for. So, If you have to buy a new engine or transmission for your car. You can wave goodbye to that vacation fund you’ve been saving, and that’s if you’re one of the lucky ones who’s in a position to save money.
Choosing the right auto warranty plan is not an easy decision. But,we hope this post has made it easier for you. Here’s to staying safe on the roads and to a journey that’s not filled with frequent stops at the mechanic!
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