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Industry NewsWhat is an Aftermarket Extended Auto Warranty?
When you purchase a brand new vehicle, in addition to the new car smell, you'll also get to enjoy bumper to bumper factory warranty coverage for a period of 3 Years / 36,000 miles. What this means is, you will not be responsible for any of the mechanical or electrical components for that time period. Some manufacturers have longer coverage, however it typically only covers the power train (engine / transmission) of the vehicle. Vehicles are made much better these days, so chances are you won't have any problems while covered under the factory warranty. Problems typically start to happen (not in all cases) when your vehicle is in the 35,000 + mileage range.
So, who is responsible for repairs after the factory warranty has expired? If you're out of coverage, then ultimately you will be responsible...unless of course, you've decided to purchase an aftermarket extended auto warranty! An aftermarket extended auto warranty (aka: auto protection, service contract, mechanical breakdown agreement, maintenance agreement) provides consumers with financial protection for future repairs. Essentially, it extends the period of the manufacturer's standard warranty. An aftermarket extended auto warranty (vehicle service contract) pays you (or the repair shop) in the event of a mechanical failure or wear beyond the manufacturer's tolerances for all labor, parts and other associated costs required to repair or replace the damaged vehicle components as designated in the agreement. How do I choose the best auto warranty provider? When choosing an aftermarket extended auto warranty provider, pay careful attention to how long the insurance company backing the plan has been in business. In addition, be sure that administrator handles claims in a timely fashion. You'll notice companies that price their extended warranties extremely low, may have insufficient funds to provide for future claims. You'll see this mostly with new companies or self insured warranty companies, that may not have appropriate provisions on the balance sheet to reserve for future claims. You can learn more about how to choose the best auto warranty provider here. What Types of Aftermarket Extended Warranties Are Available? We offer aftermarket extended warranties on most vehicles, including, but not limited to, the following types:
About The Article Visit AutoProtection.com for your free auto warranty quote. You may also read additional extended warranty articles, view our warranties coverage plans and find out about auto insurance options. This article may be distributed however copyright info and all links must stay intact. Copyright 2007 www.AutoProtection.com All Rights Reserved Article Title What is an Aftermarket Extended Auto Warranty? |
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