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Types of extended warranty

An extended warranty is different from the usual warranty that you get when you buy a car. It provides you with coverage for repairs and car parts after you start using the car.

Such coverage is very useful when you buy a new car or a used car. It helps to cover the cost of repairs not coming in the manufacturer’s warranty or it can cut down the repair costs you incur on a used car, in which there is obviously going to be no manufacturer’s warranty.

There are different types of extended warranties. Here’s a look at what you will come across with auto warranty companies.

  1. Luxury Coverage auto warranties – These warranties provide cover for many aspects. You can get bumper-to-bumper coverage, coverage for popular luxury items such as Phone and Internet Access systems, Emissions System, GPS/Navigation and DVD/Entertainment.
  2. Exclusionary Auto Warranties – This warranty type will cover you for every part of the car except some parts, which are excluded out of it. Check out the list of exclusions with different warranty companies and only choose the ones which offers maximum coverage with minimum exclusions.
  3. Intermediate Auto Warranties – You need to choose this warranty type in case you have ABS, Turbo power and it strikes a balance between coverage offered and price.
  1. Big Ticket Item Coverage – This warranty provides coverage for major items, but it may not cover areas such as ABS brakes, turbo wear and tear and so on, so check out on what is not covered before you take it up.
  2. When you ask for a car warranty, find out the type offered and check with the list above with what the dealer is offering. Check out what is covered thoroughly before you buy the warranty. You don’t want any last minute surprises when you need to get repairs done.

    Summary

    Extended warranties are really helpful as they cover the cost of repairs. Check out the different extended warranty types offered by your dealer before a purchase.

     


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