Purchasing an automobile is a large monetary investment that the vehicle
owner expects to be worthwhile. However, there is no guarantee that the car will not experience
any problems so the owner should consider some additional protection. An extended warranty
provides coverage after the initial service contract has expired and there are several reasons to
The new or used car dealer usually sells initial auto warranties that cover the automobile for a
specified period of time or certain number of miles. Consumers get these to provide them with
peace of mind that should a component break or prove faulty, the out of pocket cost to repair it
will not be outrageous. These contracts cover the major parts in the car such as transmission,
engine, air conditioning unit, and integrated computer.
When the standard Auto Warranty, an extended warranty begins. This additional service contract
provides comprehensive, bumper-to-bumper coverage. Insurance companies back it, so there is
no large commission added to the coverage. Therefore, the monthly payments are very low, even
on the lowest deductible contracts. These contracts are insured so consumers can be confident
that future claims will be paid.
Filing a claim is easy and requires little work on the part of the vehicle owner. The licensed
repair facility contacts the claims administrator to get repair authorization. Rather than being
forced to pay the entire bill and then waiting to be reimbursed, vehicle owners need only pay the
policy deductible. The car can be repaired immediately without the owner having to pay a lot of
An extended warranty is more inexpensive when purchased through a source other than a dealer.
It provides bumper-to-bumper coverage while requiring only a low deductible payment for
repairs. Obtaining this type of coverage is a wise idea for any new or used vehicle owner.
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