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Extended Warranty Auto Warranty Car Warranty

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Know about Auto Warranty Loophole: Wear
            & Tear Coverage
Are you nervous your auto warranty is going to have more loopholes than a circus act? You should be, because
with many warranty providers all they care about is making the sale. They have no interest in paying claims.
Within their contract, in the terms and conditions, there are often enough loopholes that they can legally deny the
majority of their claims.

So here's the first thing to look out for: Wear and Tear Coverage.

There are four reasons a car breaks down: wear and tear, physical damage, mechanical breakdown, and a
manufacturer’s error (when you buy a brand new car and 30 days later something is wrong). So the first thing you
can look for when selecting a warranty provider is that all your bases are covered in one way or another.

 For example, if you own a new car and there is a manufacturer’s error the manufacturer is going to cover it.
Physical damage is going to be covered by your car insurance. Mechanical breakdown is what all auto
warranties cover, so that only leaves the potential for wear and tear. Seems like a small thing, but if wear and
tear is not covered in your contract that leaves a lot of room for your claims to be rejected legally –
leaving you with the financial obligation.

Look at it this way: wear and tear can include any covered part that has not technically “failed” but has “worn
down,” such as damage caused by heat or burned/worn valves and guides.

What many car owners don’t realize is the number one reason why something breaks down is because of wear
and tear! So if you purchased a cheap mechanical breakdown warranty, it isn’t going to cover squat. And the sad
thing is that it probably wasn’t cheap to purchase.

To me, that would be like getting medical insurance and finding out that injury isn’t covered. It just doesn’t make
sense. If you don't get a warranty that covers mechanical breakdown AND wear and tear, you'll really get the shaft
(and the car repair bill!).

When you speak with any auto warranty company, be sure to ask if your warranty covers BOTH – mechanical
breakdown and wear & tear and request to see it in writing before you buy.




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posted:11/22/2011
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