Things To Look For In An Aftermarket Car Warranty Provider
If youd like aftermarket car warranty coverage, shopping for quality options and determining the best warranty provider for your needs can be difficult. While reputable extended car warranty companies can offer decent coverage at good rates, some extended car warranties are little better than warranty scams, taking customers money and failing to provide adequate service.
If you know what to look for in a provider, there are plenty of excellent options for coverage. When we evaluate extended warranty providers, we typically consider the following five categories:
- Industry standing
- Customer service
Will The Cost Of Repairs Exceed What You Pay For The Warranty
Dealers pitch warranties using the worst-case scenario: The electronic system goes on the fritz and the bill will be three grand. Or, the transmission falls out. Yes, its possible. But its more likely you will have a leaking water pump or a failing oxygen sensor.
Lets say you are tempted to buy an extended warranty for $1,200 , but you decline. Later, you wind up having a $600 repair. Ouch but youre still $600 ahead of the game.
Do I Need A Car Warranty
Yes you do. All new cars should come with a manufacturer-backed warranty as standard, while many brands offer the chance to extend the period your vehicle is covered. Buy from a manufacturers approved used programme and a warranty of some length should also be provided.
If youre buying a used car bought out of its initial cover period and not from a franchised main dealer, a individually-purchased warranty could make financial sense for those who dont want to risk the cost of a major repair.
Remember, a good warranty could only be a few hundred pounds a year, yet a sudden failure of a vehicles components could run into the thousands. If you do choose to buy a warranty, make sure you read the terms and conditions carefully as individual policies can vary dramatically.
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Using Endurance After Your Factory Warranty Ends
Our choice for Best Coverage provider is Endurance. The provider offers direct-to-consumer extended warranties, unlike many third-party brokers in the extended warranty industry. This means warranty services all come directly from Endurance, and the company handles all claims directly. Theres no middleman or underwritten provider, and excellent customer service during the quote and claims processes is a focus of many of the positive Endurance warranty reviews.
Benefits to using Endurance include:
- Ability to choose any licensed repair shop
- Direct claims
- One free year of the Endurance Elite Membership, which includes roadside assistance, rental car reimbursement, towing coverage, key fob replacement, and repair financing
- Zero-interest monthly payment plans
- Option to add an Endurance protection plan to cover systems such as your car’s air conditioning
Cost Of Vehicle Repairs
Cars are complex machines and expenses like the one mentioned above arent uncommon. For example, replacing an exhaust gas recirculation valve on a Ford Focus can cost between $193 and $298, according to RepairPal. Replacing the window regulator in a Dodge Charger can run between $624 and $670. Also, replacing a timing belt and crankshaft position sensor on a Kia Optima can cost between $845 and $916.
If youre able to plan for sudden bills for replacement parts like this, thats great. However, many people arent. Young people and college students often drive older model vehicles that are at risk for expensive repairs. Additionally, they usually arent as established in their careers as older generations, and one repair can use up a whole paycheck.
Changing Your Car Parts Can Void Warranties
Manufacturers design all the parts of a car to work together properly, so changing those parts usually voids at least part of the warranty. This can work in both obvious and subtle ways. You might expect that adding a lift kit to your truck would void the warranty. But something as simple as adding run-flat tires to a car that didnt come with them can also render parts of the warranty null.
Parts? Under federal law, a dealership can deny a warranty claim if they can prove that an aftermarket part caused a defect. But this doesnt mean that one aftermarket part voids your entire warranty. If a dealership claims your upgraded shocks nullify your suspension warranty, they may have a point, since shocks are part of the suspension.
If they claim your coolant system failed because of those shocks, you can probably appeal and get them to cover the coolant repair, since changing the shocks usually does not affect the engine.
What Does A Car Warranty Cover
A car warranty covers defects, or damage that occurs during normal use, and cant be considered normal wear and tear. It pays to replace defective parts with new or reconditioned parts at the companys discretion behind the warranty. It also covers labor.
Should your air conditioning stop working while your bumper-to-bumper coverage is active, that warranty will cover the full cost of replacement. Should your transmission fail during normal driving while the powertrain warranty is active, that warranty will cover the full replacement cost.
But many reasons you could end up in a repair shop are not covered by the standard warranty.
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Do You Need An Extended Car Warranty
Whether or not to buy an extended car warranty is a strategic financial decision.
For some cars, it will rarely make sense. The quality of todays cars goes far beyond that of cars just a generation ago. After all, the average car on American roads today is more than 12 years old and still going, according to a new report by IHS Markit. Mainstream cars built by domestic or Japanese automakers are comparatively inexpensive to repair.
Owners of those cars may find the peace of mind of an extended warranty valuable. But the warranty may never pay for itself.
For owners of mainstream vehicles, keeping an emergency repair fund set aside for car repairs may make more financial sense than paying for an extended warranty.
Some luxury and sports cars may be more rare and dramatically more expensive to repair. Owners of those cars are far more likely to find that an extended car warranty saves them money someday.
How Do You Know If Your Car Is Still Under Warranty
Whether its been a few years since you bought your car, or you just bought a used one, finding out if you still have factory warranty coverage is relatively easy. The first step is to locate your vehicle identification number .
Some automakers allow you to search for your cars warranty information on a website. However, make sure you can log in or register with your VIN number and see information about your exact vehicle. Dont just go by the generic warranty for that model year since cars can be bought and put in service up to a year ahead of time.
A better way is to call a dealership of your cars make. Ask them to look up your warranty coverage through your VIN in their database. They will be able to see the in-service date and tell you if your coverage goes through January or December, for example. You can do this even if you purchased your car used from a private seller. All brands should have dealership locators online for you to use if you dont already have a phone number to call.
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How Do Vehicle Warranties Work
Ive heard some drivers argue about brakes being covered under a factory warranty. Let me shed more light on car warranties, generally. There are two basic types of warranties: factory and extended warranties. In these two divisions, youll further find other subcategories. They are bumper-to-bumper, factory adjustments, powertrain, and corrosion warranties.
Heres the thing. Some manufacturers cover the brakes under the factory warranty. Factory warranty refers to a type of warranty that car manufacturers give due to an error in design. Car manufacturers can also offer this type of warranty due to defective vehicle parts resulting from poor workmanship.
So, the factory warranty implies that your car manufacturer will be responsible for any damage due to an error from the factory. The good thing about a factory warranty is that its transferable from the original car owner to subsequent users of the car. But the warranty subsists only if its not expired before the transfer.
On the other hand, when your car factory warranty expires, you can purchase the extended warranty. This time, youre not under any compulsion to buy this warranty from your manufacturer.
Reputable third-party suppliers offer a custom extended warranty. The warranty is more affordable and flexible than the factory warranty. The terms and conditions differ from party to party. Under extended warranty, you can include the braking system.
Does A Car Warranty Cover Paint Damage
In some cases, paint damage will be covered by your car warranty. If your cars paintwork is peeling or rusting due to a manufacturer defect, it will be covered by your cars warranty. On the other hand, your car warranty will not cover paint damage if it is verifiably caused by environmental effects or general wear and tear.
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Learn About Express And Implied Automobile Warranties And How To Enforce Them
An automobile warranty is a promise by a manufacturer or dealer that it will repair or replace defects in your car, or that your car will be of a certain quality, for a specified period of time.
Warranties are not just for new cars and are not always in writing. In some cases, even used cars purchased “as is” are covered by warranties. If you take the time to find out what warranties come with your car, what repairs those warranties cover, and how to enforce your warranties, you might save yourself a significant amount of money when your car needs repair.
Pros Of An Extended Warranty
The biggest benefit of an extended warranty is that it can save you money if your car needs a costly repair thats covered under your contract. Instead of paying the entire bill out of pocket, youd only be responsible for covering the deductible and then the warranty provider would pay for the rest, so long as the issue is included in the service contract.
Having an extended warranty can also help provide peace of mind if worrying about how youll pay for a repair is something that will keep you up at night.
similar to your car insurance, Roberts says. We dont like to pay for it, but we certainly appreciate it when we need it.
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Car Warranties Do Not Cover Regularly Scheduled Maintenance
Every manufacturer requires owners to perform certain maintenance tasks regularly, found in the cars owners manual. You can also find it by using our car maintenance schedule tool.
Car warranties do not cover routine maintenance. In fact, failing to keep up with the manufacturers recommended maintenance schedule can void your car warranty.
Some manufacturers now do include a maintenance plan in the purchase price of a car. Many 2021 Hyundai vehicles, for instance, come with 3-years or 36,000 miles of complimentary maintenance. Other automakers offer optional maintenance packages with the purchase of a new car.
Audis offers several Audi Care packages, for instance, which allow buyers to prepay some standard maintenance with the purchase of a new Audi. But these are separate programs from warranty coverage.
How Does A Car Warranty Work
Although different in name, an Extended Auto Warranty and Vehicle Service Contract work the same as your vehicles original manufacturer warranty.
Heres how they work:
- Choose a Repair Facility Automakers prefer you keep to their network of dealers and service facilities. But third-party providers, like Endurance, allow you to take your car to any certified mechanic or repair shop you trust.
- Get Your Car Diagnosed The mechanics will run several diagnostics to pinpoint the issue with your vehicle, if you dont already know, in order to relay this to your coverage provider.
- Give the Mechanic Your Coverage Membership Card All coverage holders with Endurance are issued a membership card. They will use this whenever their car needs repairs and give it directly to the mechanic so they can relay the claim information to us.
- Pay the Deductible Some contracts may or may not have a deductible. This is typically paid at the end of the repair after your car is back in your possession.
- Take Your Car Home An Endurance vehicle service contract is designed to cover repair bills in total, including:
- Any applicable taxes.
As you can see, extended coverage for your car is easy to use. Most policies come with a waiting period and a premium to be paid through easy, low-cost monthly plans.
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Are Car Warranties A Scam
Car warranties are not a scam, but you still have to do your research. A used car warranty from an aftermarket provider will not always cover the things that you need them to cover. Warranties that come from a car dealership tend to be far more extensive and legitimate.
For the record, we do not suggest buying a used car warranty from a random robot voice on the phone. Those telemarketing calls may not actually be linked to a real business.
Extended Warranties New And Used Cars
When you buy a car from a dealer or importer, you may be able to purchase an optional extended warranty on the vehicle, which will add some time or kilometres to the warranty period. This may be a manufacturers extended warranty, which usually replicates and extends your existing manufacturers standard warranty, or you may be able to purchase a dealer or third-party extended warranty.
According to the ACCC, some of these extended warranties may contain restrictive terms and conditions, such as excluding cover for certain parts of the car, or setting limits on the number or total value of claims. As such, if youre considering an extended warranty, the ACCC recommends checking to see if it provides value for money and benefits greater than what you automatically receive under a statutory warranty and the Australian Consumer Law before deciding whether to purchase it or not. Its also important to be aware that extended warranties, unlike manufacturer warranties, are usually not transferable to the new owner when a car is sold later.
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What Is The Difference Between A Car Warranty And Car Insurance
Car warranties and car insurance plans are entirely different agreements. A car warranty guarantees your vehicle against manufacturing defects, while a car insurance plan protects you against external damages. Different types of car insurance typically include coverage for the following events:
Post-accident car repairs.
How Much Does A Car Warranty Cost
Car warranties can run the gamut from being free to costing several thousand dollars. Lets talk about how to gauge the proper pricing on a car warranty:
- Brand new cars always come with some kind of car warranty. This could be a comprehensive warranty for a minimum of 36,000 miles. Or, it could be a dual warranty with both a bumper-to-bumper option as well as a powertrain warranty. Car manufacturers are the ones who give you these, not the dealership.
- Car warranties bought at dealerships range between $1000 to $1500. This is an extended warranty on the car that you buy there. You may need to make sure that the dealership isnt charging you for the basic warranty itself.
- Extended warranties bought from third-party providers will range between $1,000 to $4,000. Most third-party extended warranties will be around $2,500 or so. They will not be bumper-to-bumper, but rather, work based on individual parts coverage.
Note: We suggest that you get a free quote on car warranties if you want to get an extended car warranty. The price of your warranty will change based on the make and model of your car, not to mention the age of it.
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Lets Look At The Protection Your Vehicle Comes With
All new vehicles come equipped with a warranty, but what does a car warranty cover? It is important that you understand which components of your vehicle are covered so you dont find yourself financially responsible for damage caused by a manufacturing error.
In this guide, well go over the types of warranties and what each level of coverage includes. Well also clarify the difference between a manufacturer warranty and an extended warranty.
If your factory warranty has already expired and you need extended coverage, we recommend you look into the most reputable extended car warranty companies. Our team has reviewed the best extended auto warranty providers, and you can get free quotes from a few of our top picks below.
Final Word On Car Warranties
Warranties vary among car manufacturers. All car warranties cover basic things like powertrain problems and manufacturers defects. However, its important to read your warranty policy to determine what is covered. Different companies have different warranties.
If you want maximum coverage, then consider buying an extended warranty. Extended warranties cover wear and tear and certain vehicle systems not covered by a basic warranty. Some drivers are willing to pay for the added peace of mind, while others are not.
All new cars come with a 3 to 7-year warranty that provides basic protection against manufacturing defects and powertrain breakdowns. To cover more components, however, youll need an extended warranty, bumper-to-bumper coverage, or similar policy.
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