Guide To Car Warranties

Guide To Car Warranties

Information overload can certainly happen when you are in the market searching for car warranties. Some of the things that you will need to look into include:

  • What dealer to choose when it comes to car warranties?
  • What kind of plan should you go in for?
  • What would be the cost implications of the car warranty?
  • How much of protection can you enjoy with this kind of insurance and even
  • How does a car warranty work?

Here are a few things that can serve as a useful guide to car warranties.

What is a car warranty?

In simple terms, a car warranty is nothing but an insurance policy that will help you meet the costs of repairs in case of an electrical failure or a mechanical problem in your automobile. Car warranties differ according to:

  • The timeframe of their ability
  • The parts or components that the cover
  • The prices that are payable for the same and
  • Exclusions that may come into effect as far as the insurance policies are concerned.

What are the components that are covered?

Typical car warranties cover almost all the major components of the car. But you can also look for coverage plans that take care of particularly problematic components of your car.

You can therefore enjoy an insurance policy for your car’s:

  • Suspension system
  • Brake parts
  • Fuel systems
  • Air conditioning units
  • Power train
  • Gear box
  • Steering systems and so on.

What kind of a plan should you choose?

Most car warranty providers have a wide range of plans that will give you enough flexibility to choose the right kind of insurance policy. If you want a comprehensive coverage, then go in for a comprehensive coverage plan. This will cover all components of your car and you do not have to worry about a single type of failure. Your insurance policy will pick up all the repair costs concerned.

But if you feel that your car is prone to problems with its transmission system more than anything else, then you can also opt for a component specific car warranty. This may prove to be far less expensive than a comprehensive coverage but it may also give you fewer benefits. At the end of the day, it really is your choice and your financial plan which would govern the kind of plan that you choose.

Is it available for used cars and new cars?

Indeed, car warranties are available for both used or pre owned and new cars. It is also a good idea for you to find out what kind of exclusions or limitations exist for used cars. These limitations may be linked to a timeframe or mileage. For instance, a particular warranty may be valid only for six months from date of purchase. The road worthiness of your vehicle will also be a determinant of the warranty plan.

Finally, it is a good idea not to assume anything while searching for a car warranty. Do make a list of points that you want answers to and ask the dealer for information about the same.