Used car warranty is a warranty program that is provided by various companies. It is also known as an extended warranty and it starts once the factory warranty expires. This warranty scheme should not be confused with insurance schemes, as they are completely different from each other.
If a customer wants a used car warranty, all they have to do is contact a warranty company and sign a contract that guarantees all the repair costs that are specifically mentioned in the contract. The plans are provided solely on the needs of the customer, and it all depends on the customer to include a particular damage type in the agreement or not.
Some of the common repairs that are usually in the contract for the used car warranty are the mechanical breakdowns, wear-and-tear of the automobile’s body, seals and gaskets and the damage caused by overheating. For those customers who need an unlimited cover there are plans for unlimited amount of repair, but the premium is usually high in that case. Some used car warranty programs provide the customer with free emergency roadside assistance until the warranty doesn’t expire. Yet, some companies also provide $100 towing benefits and car rental and travel expense reimbursement.