Warranties

What are vehicle warranties? Warranties are contracts that pay the costs of certain repairs. They are like vehicle repair insurance. The manufacturers' warranty that comes with a new vehicle is usually enough, offering bumper-to-bumper coverage of three years or 36,000 miles and even longer coverage on the power train. You can also purchase extended warranties.

NEW VEHICLES:
You will get a manufacturer's warranty on new vehicles. You can buy an additional, extended warranty from the manufacturer if you wish.

USED VEHICLES:
For used vehicles, you can buy a warranty from your own insurance company unless there is warranty coverage remaining on the vehicle that can legally transfer to you and you have this in writing.

WHAT TO AVOID:
Avoid buying warranties from other third parties such as vehicle dealers and warranty companies.

Extended Warranties. When your manufacturer's warranty expires, you will have no coverage for repair bills. Extended warranties continue repair coverage as specified and also have benefits such as towing, car rental, toll free assistance, trip interruption insurance and lost key lockout. When the manufacturer's warranty ends, the extended warranty can go into effect for another few years. If you want an extended warranty, it is crucial to purchase one early. Just like life insurance, the longer you wait, the more it will cost, so if you plan to buy a warranty, lock in your savings when your car is young and healthy. As more repair data surfaces on your make of vehicle, it may be placed into a higher rate class, making an extended warranty more expensive. Once you buy your extended warranty, your rate class cannot change. Get it sooner, not later.

DO NOT buy an extended warranty at the time you purchase. With car dealer extended auto warranties, you often pay double for less coverage. Remember that dealerships usually have a high mark-up on extended warranties. Although you do want to purchase an extended warranty while your car is still "young," you should not make this decision until you have researched cost and coverage options.