How do you avoid a financial loss when your car is totaled?

 

New and used car buyers are potentially losing thousands of dollars when their vehicle is totaled after an accident or theft.  Many do not know that they can acquire an additional insurance policy when they first purchase the car.

 

Some auto warranty providers believe the reason many drivers do not take out Guaranteed Asset Protection (GAP) Insurance from their selling dealer is their lack of understanding the benefits of these policies.

 

Almost a million cars are written off in the US each year and many drivers are left owing a lot of money to their finance company as the insurance payout is far less than the outstanding finance balance on their car loan.  On higher value used cars this could amount to a few thousand dollars, especially if the car was recently purchased.

 

GAP insurance pays the difference between the insured value of the vehicle and the outstanding finance balance.  Recently there was a situation where a very expensive luxury car was written off following an accident. The difference between the insurance pay out and the outstanding finance balance $13,000 because the car was only three weeks into its finance contract term.  Because the owner had taken out GAP insurance the policy paid out the difference and he was able to buy another car without any additional out of pocket expense.

 

Many used car warranties purchased with the vehicle have their own built Gap Insurance as the extended warranties are cancelable on a pro-rata basis.  This is just another reason that a used car warranty turns out to be a very smart purchase.

Auto warranty claims in the automotive sector for new car warranties are up by less than 1% in the first three quarters of 2007.  When we compare this with the first three quarters of 2006 this is very good news.  In new car warranty claims it is a very small change.  Automobile manufacturers are very pleased about this trend. 

For all of the auto warranty providers who also manufacture new vehicles, thereby providing new car warranties, this industry sector is definitely in the black.  Hopefully this financial trend that seemed to begin in 2006 will continue in the future.  Auto warranty costs as a whole have been somewhat flat since back in 2004.

Recently market indicators began to make it look like automobile manufacturers auto warranty costs were on the rise.  As it turns out, it seemed to be a simple market adjustment as the costs to warranty their new vehicles has begun to stabilize.  Manufacturers and their supplier’s costs have remained consistent with just a small gap between the two.  The great news is that what auto warranty expenses are no longer skyrocketing which makes US automobile manufacturers feel fairly confident they will continue to even out.

Since September 2007, another quarter has gone by and about $4 billion has been spent processing auto warranty claims.  The auto warranty industry awaits the manufacturer’s filings of their annual spending reports which will probably be available sometime in March.  It will be interesting to see how the trend has continued in the past two fiscal quarters.

In most years the fourth quarter is one of the most expensive for automotive warranty providers in the United States.  We’ll have to wait and see, but it is possible that the fourth quarter of 2007 could have been the most expensive ever.

There’s no arguing that 2008 is a very important year for the automotive industry.  Consistent recalls, the fuel crisis, and many public-relations situations have automobile manufactures struggling to keep their customers loyal.  It will be interesting to watch during the year to see what makes and models can avoid a continuous downward slide of sales.

The auto warranty world will probably benefit from the manufacturers will as consumers will be far more concerned about adding new car warranties to their vehicles.  The auto warranty business has been on the incline for almost a decade now as a good extended warranty has become one of the most important purchases someone can make with their vehicle.

Feeling the effects of 2008’s potential lackluster automobile performance, vehicle manufacturers automobile warranty divisions may play a pivotal role in enticing customers to make a purchase.  Manufacturer’s warranties will now become an all-important incentive for new and used car buyers.  Customers simply will not be able to avoid considering what warranty coverage a particular company offers.  Many auto warranty providers are now making adjustments to fit in better with this new marketplace.

Road service refers to assistance extended by auto warranty providers to vehicle owners at times of distress.  It is not obligatory that a road service plan be included with new car warranties or used car warranties.  They are however, important and assist customers in distress, especially when they are stranded on motorways when their vehicle breaks down.

Normally, the road service is offered by cars manufacturer but expires with the original coverage.  Sometimes dealers may offer independent road service for their customers but this is very rare and is only for breakdowns in their region.

At the time of delivery, insist on an auto warranty that offers a road service program. Road service includes range of services starting from repairs and maintenance of the engine to flat tires service.

Usually road service operates through a hotline telephone number and has a toll-free number to call whenever vehicle owners are in distress and help is usually there in less than 45 minutes.

Sure, you want to be environmentally friendly and don’t want to put any more money than you need to into the pockets of the fat cat executives of the oil industry.  But is purchasing a new hybrid vehicle a good way of going about it.  I believe the answer is yes.  The demand for hybrids has been increasing at a rapid pace for the past decade or so.

In addition to being fuel friendly, these vehicles are also environmentally sound and produce far less emissions than standard vehicles.  This newer hybrid technology has also made these vehicles far more complex than cars and trucks of the past.  This has forced auto warranty providers to make adjustments to their coverage to allow for much of this new technology.  Now, more than ever, an extended warranty is an essential piece of the new car purchasing puzzle.

An ecologically conscious consumer will surely be smart enough to choose to add the purchase of an auto warranty to their decision to make a hybrid a part of their family.

Lawmakers recently voted to strengthen the regulation of auto repair facilities after an investigation by a television news team from Nevada.

Apparently the current laws in place are more or less a license to rip people off. The new laws help streamline the regulatory process and have the Department of Motor Vehicles named as the place for disheartened consumers to lodge their complaints. This is a great step as the DMV has authority to shut down a crooked repair shop.

Auto warranty providers had also lobbied for the new legislation as it will provide them with an additional safety mechanism for the used car warranties they offer. 

It has already helped as some repair facilities have already felt the sting of the new system and have lost their license to do business.

The bill also helps to provide additional funds for the attorney general’s office to do more in the future with their undercover investigations.

The used car business is almost as large as the new car business. People who opt for used cars are more than the people who opt for brand new cars though many factors influence this but the fact is that buying a used car is lot more tricky than buying a new one. You need to pay attention on many aspects of a car and the car dealer also. Care should be taken that you purchase the right warranty for your car. These warranties under the Used Car Warranty Law provide the best protection to your pocket from fraud and faulty car dealers. 

Used Car Warranty Law are a set of rules and regulations created by the US government for the protecting their citizens from these fraud car companies. Every Warranty has a warranty period and within this warranty period if your car needs to be repaired or has any problem then service will be provided by your dealer for free of cost. Though care should be taken while choosing which warranty to purchase as all warranties do not have the same warranty period and the things which are covered in the warranty may also differ.

Auto warranty tips refer to useful information that comes in handy while purchasing the warranty. Auto warranty tips are important since purchasing a warranty can be a tricky task. Either hire an auto consultant while purchasing the auto warranty or exercise caution in the deal if you are doing it on your own.  

Auto warranty is an undertaking given by the vehicle manufacturer in association with the auto dealer to provide repair and maintenance service to the vehicle for a period of time from the date of its sale. The auto warranty also takes care of the cost of the replacement of spare parts if found defective within the warranty period. However, it does not take care of the cost of the replacement of expensive spare parts. Also, the spare parts or accessories damaged on account of accidents cannot be covered under the warranty.  

There are two segments in auto warranty, used car warranty and new car warranty. Used car warranty refers to warranty issued to used cars while new car warranty refers to warranty issued to new cars. Watch out for fraudulent warranty while purchasing warranty for used cars. The used car warranty, also known as aftermarket auto warranty, is generally expensive considering the age of the vehicle. 

A warranty is an assurance given by a product manufacturer to replace the product in part or in full if found to have a genuine manufacturing defect. The warranty period will exist for up to two years from the date of the sale of the product. Under US law, all products have to be accompanied by a warranty. The same applies to vehicles also. Therefore go for a suitable warranty.  

A suitable auto warranty could mean one that is flexible, affordable, and functional and that meets your expectation. To select a suitable warranty, it is important to conduct review of the existing offers. At the time of purchasing the car, the auto dealer will provide the warranty offers. Insist for at least five different warranty packages. Normally, each auto dealer would have tied up with at least five different independent agencies for the warranty. Therefore, it should not be a problem for the auto dealer to provide five different warranty plans.  

In auto warranty, there are two categories. They are new car warranty and used car warranty. New car warranty is issued to brand new cars released from the showroom. The used car warranty is issued to pre-owned cars. The used car warranty is also called as aftermarket auto warranty.