Aftermarket Auto Warranty

 

An aftermarket auto warranty is basically an extended warranty contract.  Most people buy these because they think that more coverage is better coverage, but they do not take the time to think carefully about whether or not they really need an aftermarket auto warranty.

First of all, the manufacturer’s warranty is the first warranty that any vehicle ever possesses.  Is this warranty still valid?  If it is, you must then consider the remaining mileage or time frame till this warranty becomes void.  Secondly, what is the purpose of your purchase?  Is eighteen months coverage enough for your purposes?  What is the average mileage covered per day – would fifteen thousand miles be enough for your driving distances?  If not, then the aftermarket auto warranty might be for you.

You also need to consider the possibility that you would sell the car before the manufacturer’s warranty is even up.  If such is the case, then it makes no sense at all for you to invest in an aftermarket auto warranty – quite simply because the purpose of the aftermarket auto warranty is to provide extended coverage beyond your manufacturer’s validity (this can be both time periods and limited coverage). 

Auto warranty refers to a service under which the car dealer in association with a local firm takes up responsibility for the repairs and maintenance of a car for a brief period from the date of sale. For instance, if a particular vehicle develops a mechanical failure or engine fault, the repair charges will be covered under the warranty. A vehicle owner doesn’t have to pay for the cost incurred to repair the car.

The auto warranty covers some basic aspects of the car like engine, drive train, power train, break system, steering system and other small repairs.

An auto warranty comes in two categories. They are original warranty and after-market warranty. Original warranty is the warranty issued to the car owner at the time of purchasing a brand new car from the vehicle dealer. This original warranty comes for a limited period of three years or the minimum distance covered during that period.

Once the original warranty period expires, car owners can choose an after-market auto warranty. They are called so since they can be subscribed to only after the original warranty period expires.

Just like original warranty, the after-market auto warranty comes loaded with features. The best known package under after market auto warranty is the ‘bumper-to-bumper’ package, which takes care of the entire vehicle.

 

More often enough, people are under the assumption that their responsibilities of maintaining their vehicle seizes once they get aftermarket auto warranty.  Buying an aftermarket auto warranty however does not necessarily imply that your car’s maintenance and repairs are no longer your immediate concerns.  In fact, it is quite easy to get oneself into a fine mess if not careful about the purchase of the aftermarket auto warranty.  Time and time again you have heard it: “Read carefully before you sign or buy!”  Most people would be surprised to know that the most common reasons for a warranty claim to be denied are because of a lack of understanding of the information within the warranty, or simply the neglect to read the information within the warranty.

Most aftermarket auto warranties require that you service your vehicles at the specified servicing times or mileages specified in your contract.  Even missing a simple oil change can mean that you have broken your contract.  Remember, most companies operate to make money, and where possible they try to avoid paying claims as much as possible.  Do not let their next victim be you – read carefully!

 

If you have recently purchased a vehicle, you may have been faced with the question of purchasing an extended warranty.  Whether or not you need an extended warranty would depend heavily on the intended purpose for which you have purchased the vehicle.  Basically, an extended warranty is a service contract that agrees to cover auto repairs and maintenance within the cost of the warranty for a certain time frame only.  Once you decide on the purchase of an extended warranty however, you must decide if you want the manufacturer’s warranty, or an aftermarket auto warranty.

The aftermarket auto warranty is a warranty contract issued and honored by a service dealer other than the manufacturer’s authorized dealers.  Aftermarket auto warranties are cheap and can be purchased for both new and used cars while manufacturer’s warranties are expensive and mostly cover new cars.  Also, an aftermarket auto warranty can only be honored by the issuing service provider, meaning that your vehicle must be taken to the same place for servicing or repairs as where you bought the warranty.  Another risk with purchasing an aftermarket auto warranty as opposed to a manufacturer’s warranty is the financial stability of the company that you are purchasing the warranty from – will they be able to honor the contract at all times?

Most persons find themselves buying aftermarket auto warranty, or extended auto coverage, upon the insistence or suggestion of a car salesperson without asking or understanding what they are buying.  And most people fork out hundreds of dollars a year on aftermarket auto warranties with the expectation that it shields them from every single car problem under the sun without even understanding what they are spent their money on.  Then when the time comes to cash in on a claim, they find themselves being rejected by car dealers and service providers alike.  Why?

Aftermarket auto warranties basically come with two types of coverage programs under different plans to suit the service providers.  The two coverage types include mechanical auto coverage, which is the more popularly offered of the two warranties, and wear and tear auto coverage.  Mechanical coverage, also known as the bumper-to-bumper coverage, is usually the cheaper of the two coverage types, and covers everything in your car except the wear and tear damages.  This usually includes engine and transmission breakdowns.  But think about it – when was the last time your car gave problems?  And when was the last time before that?  Did anything ‘break’ in your car?  Eight out of ten times, it is the wear and tear in a car that gives the most problems, and which hurt your pockets the most.  It is therefore best to get an aftermarket auto warranty that includes both a mechanical warranty and a wear and tear warranty.