Many questions crowd your mind when you are trying to understand car warranty insurance. Some basic questions that are usually encountered as these are generated from common curiosity to know what it is all about. The questions are also directed at how relevant car warranty insurance could be for you. Some selected questions that are frequently asked have been included in this article. This should help to understand the various aspects of car warranty insurance that is applicable for any brand of car – Audi, Ford, Toyota, BMW etc.
What is car warranty insurance?
All cars are backed by the manufacturer’s warranty when it is sold new. The manufacturer takes complete responsibility of vehicle repairs during the warranty period free of cost. This ensures that car owners have complete assurance that the vehicle will always be protected and cared without any extra spending on repairs. Such warranty lasts for a specific period of time. Once the manufacturer’s warranty ceases, you can buy car warranty for extended period that is quite similar to what you had enjoyed earlier. Car dealers, some manufacturers and third party service providers offer this facility on payable basis. This extended warranty is known as car warranty insurance.
How does extended car warranty help?
The cover for vehicle protection that car owners enjoy during the period of manufacturer’s warranty is further extended by buying car warranty insurance. Since vehicle repairs are expensive, buying extended car warranty allows you to fix your expenses on car repairs and can save extra spending for car maintenance. Having an extended car warranty that is transferable can enhance the re-sale value of your car.
What is the best time to buy extended car warranty?
The earlier you buy extended car warranty the lesser you pay for it. Car warranty insurance can be purchased even at the time of purchasing the car. However, it comes into effect only after the expiry of the manufacturer’s warranty.
Is all car warranty insurance the same?
While all extended warranties are same in spirit, its nature and cost will vary according to the needs of car owners. The cost will be driven by the extent of coverage that you want for repairs which might even include repairs arising from wear and tear but at extra cost. Everything from the engine to transmission system, fuel and ignition system to cooling system, electrical and brake system can all be covered.
What influences the cost of car warranty insurance?
The age of the car, its make and model together with the period of cover and the extent of coverage all contribute in deciding how much you have to pay for it.
What are the general exclusions from the purview of car warranty insurance?
Any pre-existing condition (problem) of cars is not included in car warranty insurance. The warranty covers everything within the scope of its coverage from the time the warranty is enforced. Problems that are inherited are kept out of the ambit of the warranty.
Usually car warranty insurance can be cancelled at any time and get refund of the unused amount.