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.