Extended Warranty

An extended warranty is an agreement between the car warranty company and the customer. This type of warranty extends the original manufacturer's warranty. When you purchase a car, the payment of any sort of repair is covered under this agreement. Remember that a warranty is entirely different from insurance. In the case of insurance, you are required to deposit a certain amount regularly in a claim reserve account but for an extended warranty, you usually don't bear any additional monthly costs after you purchase the warranty. Terms of extended warranties can be confusing and difficult to understand at times. Clarify every aspect of the extended warranty prior to signing it.

In most cases, purchasing the extended warranty is an afterthought and usually occurs after you've determined which car you wish to purchase. Extended warranties, however, don't cover everything. This type of warranty is correlated with proper vehicle maintenance. If you do not follow proper maintenance guidelines, your warranty may be rendered invalid and your claim may be rejected on the grounds of poor maintenance. Review your contract carefully before and after purchasing it.

How do you purchase an extended warranty?

It would be a good idea to visit any websites related to extended warranties. Verify the credibility of the company offering the warranty. You can do this by consulting professionals and family members of friends who have purchased one in the past. Warranties for luxury cars may involve additional costs. Your dealer may provide you with a warranty brochure explaining the extended warranty contract. In addition, whenever you purchase a used car, you should be extra cautious in regards to extended warranties and what's covered on a previously owned auto.