Friday, August 3, 2012

What Type Of Car Warranty Is Best For You?

Because a vehicle purchase is such a major investment, many individuals opt for an extended car warranty as a peace of mind insurance coverage. Extended auto warranties can be purchased during the vehicle buying process or you can purchase one independently of the auto dealer. Keep in mind that auto warranties offer coverage for a certain number of years or a certain number of miles, whichever comes first. Many new car purchases come with a bumper to bumper warranty, though be advised that the bumpers are not covered. This type of coverage is the most comprehensive and typically is made part of a new car purchase.
The type of warranty you purchase will be predicated on whether you are buying a brand new vehicle or a new-to-you vehicle. Prices and coverage options vary depending on the year, make and model of the car, particularly when it comes to extended car warranties. Also, when you are buying a used car ask if there is any coverage left on the original warranty as sometimes these warranties follow the vehicle, not the current owner.
Bumper to bumper coverage is usually offered with a new car but keep in mind that even with the name, bumper-to-bumper, there are items that will be excluded. You will need to read the fine print so you are not taken by surprise in the event you need a repair on the car. Typically these car warranties will cover up to 50,000 miles but you may be able to purchase an additional number above what is originally offered.
An inclusionary or stated-component coverage warranty is just what the name implies, a policy that specifically lists what is covered and what is excluded. An inclusionary policy may cover major vehicle component repairs. With these policies you may also be able to buy add on coverage. A stated component warranty is usually purchased by an individual who buys a car that has between 50,000 and 100,000 miles.
Powertrain warranties cover equipment included the engine, drive axle and drive shaft as well as the transmission - the powertrain systems of the car. As with the other warranties, there may be other options you can purchase to go along with this coverage and you will want to read the fine print to see what is or might be excluded.
Auto warranties are typically considered a wise investment, but if you are looking to buy additionally coverage, be sure to do so soon after you buy the car. An extended car warranty will help cover repairs for as long as pay for, but prices go up on these warranties the longer you wait to buy.

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