The Complete Guide to Extended Warranty Insurance Policies
Today, any brand new car that you choose to buy will leave the showroom with one standard feature. This feature is a warranty. A warranty is a written guarantee given to the car owner that the manufacturer will replace or repair any defective parts that fail. There are some limitations to a warranty but, the basic idea of the concept is that if the damage to the car is not the car owner’s fault, the manufacturer should make sure the car returns to its best shape.
Different manufacturers have different warranty plans. These plans can differ on the basis of how long the car was purchased and how much the car has been used. Hence, plans range from 2 years / 40,000 km to 3 years / unlimited km. But what happens once you use the car for the limited amount of kilometers or the time limit of the warranty expires? Essentially, the benefit your car manufacturer offered you will be discontinued. To continue receiving it, you can look into extended warranty insurance policies.
What is extended warranty insurance?
Extended warranty insurance is essentially an assurance that you will continue to receive the same benefits for longer than the manufacturer offers them. It comes into effect once the standard warranty offered by the manufacturer expires. Like the standard warranty, it guarantees replacement or repair of specific parts if they do not work.
Do you really need it?
Whether you should purchase an extended warranty depends on each person’s ownership plan. If you plan to use the car within its standard warranty limit and sell it, buying the extended warranty does not make sense. However, the one benefit you can have in this case is that an extended warranty can help you negotiate a great price while you sell the car. However, if you plan to keep the car for longer than the standard warranty, the extended warranty proves to be very beneficial. Yes, cars today are more reliable than ever, but, like any mechanical thing, failures can occur, especially after two or three years. Extended warranties can be especially helpful in this case.
How can you buy an extended warranty?
You can purchase extended warranties through the car manufacturer or through car dealers. Third-party sellers like general insurance providers may have great plans so you can look into them too. It is advisable to purchase an extended warranty at the time of purchase as you are likely to get a better deal. If you are not sure about buying the policy and want to think about it for a while, make sure you know the exact time you will buy it. Generally, you can purchase extended warranties before the standard warranty expires, but some manufacturers have time limits. Also, look carefully at the coverage plan when you purchase an extended warranty. Sellers will try to entice you by offering an attractive deal, but make sure the warranty offers adequate coverage. * Standard T&C Apply
What does it cover?
The exact coverage of your extended warranty policy depends on the manufacturer and the model in question. Manufacturers usually offer plans that cover engine and electrical damage but not ordinary wear and tear. In addition, labour costs are covered, so if it is a complex replacement or repair, it is free. You should also look into third-party sellers of extended warranty policies. Many insurance companies offer great deals on such a policy. However, if you do not want to spend much time on buying extended warranties, you can always get your extended warranty from the car manufacturer. * Standard T&C Apply
Purchasing an extended warranty is always beneficial, especially if you want to keep your car longer. Yes, it may not cover some parts and flaws, but you get a longer period of coverage. And even though it costs you a premium, it can save you a lot of money in the long run through insurance claims or help you sell your car. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.