Friday, June 2, 2006, 05:16 PM
by: Jack Cooper
There are several types of warranties you can purchase when you buy a vehicle,depending on if it is a new or used vehicle and if used,the mileage on vehicle at time of purchase.
If you purchase a vehicle with some factory warranty left on it you can buy an extended factory warranty that will take over when the new car warranty expires.
The extended warranty will cover most of the things the orginal warranty did except for maintenance items such as belts,hoses,light bulbs etc.
The extended warranties will have different levels depending on what you want covered and what deductible you want.
The factory extended warranty is probably the best you can purchase on a newer vehicle,but always compare before you purchase and make sure you get the most for your money.Here at the Carfacts Warranty page I will try to show you what to look for before you buy.
The aftermarket warranty is the most popular warranty and most times will cost less than a factory extended warranty, but one thing you must do is read the contract and make sure you understand it fully before you buy so you don't get a shock when you have a failure and its not covered.
There are hundreds of aftermarket warranties on the market some are very good and some are not worth the paper they are written on and just because a dealer sells it dosn't make it a good policy as there is a heavy markup for the dealer to sell these warranties. Sometimes a dealer will loose money on a vehicle sale and then sell you an aftermarket warranty to make a profit on the total sale.
I will touch bases on a few of the things to look for in an aftermarket warranty. Like I said before there are many different types of warranties and the aftermaket warranties vary from policy to policy and company to company.
There may be a free,or low cost, 30-60-or 90 day warranty that the dealer will offer you on certain vehicles and then offer an up grade to a better warranty. Usually these 30-60-90 day warranties cover very little and if you have to pay for them they are of little value and you should get a 12-24-36 month policy.
If you plan on keeping your vehicle or have it financed you should definitely go for the length of finace if possible as there is nothing worse than paying for a vehicle and then have a $2000.00 failure.
Your less expensive warranty will be on a driveline failure only, and this can get sticky if you buy one of these and have a failure for a couple of thousand dollars and then find its not covered.
This is where you read the policy, have it fully explained or get someone that knows warranties to go with you and check it over before buying.
If you can't do any of the above I will be putting up a check sheet on my web site (www.jtcbiz.com) you can download and check yourself or have dealer do it for you, they should do this if they want to make the sale.
You may buy a driveline policy that dosn't cover gaskets and seals, then have a cylinder head gasket fail, overheat the engine and dump antifeeze in your oil and damage the rod/main and cam bearings and other internal parts to the extent of needing an engine replacement. Then you find out none of it is covered due to the "MAIN" failure being a gasket failure with sub damage to the engine.
Another thing to look out for is a pre-existing clause. Pre-existing is where there is a problem with the vehicle that is not visable or noticeable at time of purchase.
Since you don't know how the vehicle has been maintained before you bought it there may be a serious problem lurking and then raises its ugly head after you have had the vehicle a short time. You may be stuck with a major repair due to the failure being considered "PRE-EXISTING".
Make sure the vehicle has been inspected and has a signed inspection sheet that states all items that had been checked and has no problems, then have the dealer waive any pre-existing problems that may arise or make sure your policy states that any "unknown" pre-existing problems will be covered.
About The Author
Jack Cooper
Occupation: Auto Appraiser/Inspector
Website: www.jtcbiz.com
Biography: I have over 40 years experience in the Automotive field, from ASE Master Tech to owner of my own repair shop and have been doing Automotive Appraisals and extended warranty/pre-purchase inspections for the past 12 years.
I have been working on building and just about anything connected with cars all my life. I have been a Drag Racer (early years) drove stock cars (asphalt and dirt) built Hot Rods and restored classic cars, so have been around just about any type of vehicle you can imagine.
My hobby is NASCAR and building web-sites. My current web-site www.jtcbiz.com is a site I started several years ago as an information site for Cars and expanded into trucks, 4X4's, ATV's, Motorcycles and NASCAR. The site started out to be a business site, hence the jtcbiz name, but turned into a site on vehicles so don't be alarmed with site name as it had a lot of exposure so I left the name.
I am just getting into writing columns and also a couple of books coming out so check me and my site out at www.jtcbiz.com and email me any comments or suggestions you may have for articles or site improvement or something you would like to see on the site at jack@jtcbiz.com.
Thanks
Jack Cooper
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( 3 / 5136 )Tuesday, May 2, 2006, 08:44 AM
Administrator
A company that authorizes and pays the repair facility for repair work to your vehicle. The administrator works hand in hand with the repair facility to make sure your claim is handled properly.
Cancellation
Typical cancellation clauses of an extended warranty are for the owner to receive a full 100% money back guarantee if the policy is cancelled with the first 30 days of enrolling, if there have been no claims filed. After 30 days the refund is usually prorated based on time and mileage that the policy was in force.
Deductible
The amount that you must pay the repair facility for work when vehicle is being repaired.
Eligibility
Determining of a vehicle being in certain classifications and which coverage can be applied to the vehicle. A vehicle typically must be less than 10 model years old and have less than 100,000 odometer miles to be eligible for an extended warranty. Additionally, vehicles with less than 50,000 miles and less than 4 years old are eligible for more comprehensive coverage than may be available to older more driven vehicles.
Exclusionary Policy
The most comprehensive extended warranty available. It is typically referred to as a "bumper to bumper" policy. This particular policy lists components of your vehicle that are not covered under the warranty. If a part or component is not listed, then it is covered under an exclusionary policy.
Extended Warranty
A policy, which protects the automobile owner or lessee against mechanical failures and breakdowns. Can also be termed Vehicle Service Agreement or Extended Service Agreement. This warranty will pay for your vehicle's covered repairs after the manufacturer's warranty has expired.
In-Service Date
The date the Vehicle was purchased by the original owner and driven or the date the Vehicle was placed in use for rental, demonstration or other purposes.
Inclusionary Policy
A policy that lists the components and parts that are covered by the extended warranty. If the component or part is not listed, then it is not covered.
Manufacturer's Recommended Maintenance Guidelines
This is the routine maintenance that is recommended by the manufacturer of your vehicle to keep the vehicle in satisfactory working order. Typical guidelines to be followed include: changing the engine oil, checking proper fluid levels, tire rotations, wheel alignments
**Not maintaining your vehicle as recommended by the Manufacturer will void your warranty coverage
Manufacturer's Warranty
This is the promise of your vehicle's manufacturer to repair your vehicle for a specified period of time. Typical manufacturer warranties are 3 years or 36,000 miles or 4 years or 50,000 miles. Check your manufacturer's warranty manual for warranty information.
New Vehicle
When discussing extended warranties, the term new vehicle means an automobile that is still covered by the original manufacturer's warranty.
Plan Expiration
This is the date or odometer mileage that policy will no longer be in effect. For example, a 6 year / 100,000 mile extended warranty, will expire 6 years from the date that you enroll your vehicle or when the odometer reads 100,000 miles.
Plan Term
The amount of time in years or the total mileage that your extended warranty policy will protect your vehicle.
Power Train Warranty
A limited warranty that covers certain parts of your vehicles engine, transmission and drive train.
Rental Benefit
The amount you will be reimbursed for actual expenses incurred for substitute transportation while your vehicle is being repaired.
Repair Facility
An authorized licensed repair facility located in the United States or Canada. This includes, but is not limited to your dealership, local mechanical facility or national repair facilities.
Seals and Gaskets
Seals and Gaskets impact some of the most critical systems within a vehicle. They are found within the engine, transmission; drive axle, steering, AC, and cooling system. Seals and Gaskets are essential in protecting all vital fluids within the automobile. The failure of seals or gaskets can lead to extremely detrimental damage to the vehicle and costly repairs. This is a coverage which can be easily misunderstood. If the language in a contract says “Seals and Gaskets covered only in conjunction with a covered repair”, that means no stand alone Seals and Gaskets coverage. This also means that if the seal or gasket is the cause of any malfunction, the claim is not covered. The correct language is “Seals and Gaskets are covered.”
Transferability
A vehicle having an extended warranty can have the warranty transferred to the new owner of the vehicle if the vehicle is sold privately.
Travel Expense / Trip Interruption Benefit
In the event of your vehicle not being operable and caused a delay en route and you are more than 100 miles from your home, this is the amount you will be reimbursed per day for restaurant meals and lodging.
Used Vehicle
When discussing extended warranties, the term used vehicle means an automobile whose original manufacturer's warranty has expired. This term has nothing to do with ownership of a vehicle.
Wear and Tear
When a part or component has failed because it can no longer perform the function for which it was designed solely because of its condition. When the part has worn beyond the manufacturer's tolerances allowed for that particular vehicle at the mileage when the problem occurs, if it has received manufacturer's recommended maintenance. It is very important to understand the difference between "wear and tear" items and parts that are considered normal maintenance that can wear out. Normal maintenance items that usually wear out are typically not covered under an extended warranty program. Some examples of parts that wear out that are not covered are brake pads and rotors, brake shoes and drums, and manual clutches.
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( 3 / 3250 )Monday, April 10, 2006, 08:57 AM
1. What is an extended auto warranty?
2. What exactly does an extended warranty cover?
3. Why do I need an extended auto warranty?
4. Why should I purchase an extended auto warranty now if my vehicle is still covered by the manufacturer?
5. What about the deductible?
6. What type of auto warranty can I buy?
7. If the manufacturer's warranty for my vehicle has expired, can I still obtain extended auto warranty coverage?
8. How does the claims process work?
9. Where can I get an instant quote for an extended auto warranty for my vehicle?
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1. What is an extended auto warranty?
An extended warranty is an agreement between the car owner and warranty company, obligating the warranty company to pay for repairs covered by the contract for a specific period of time.
With an extended auto warranty you are protecting yourself from the unexpected cost of mechanical failure.
One major repair often ends up costing as much, or even more than the entire cost of the warranty. As a consumer, you can only accurately understand the coverage if you learn the terminology and standard industry requirements. The levels of coverage offered differ considerably from company to company. Most states (36) do not regulate the coverage, and there is quite often jargon and restrictive language buried in the contract.
2. What exactly does an extended warranty cover?
Know what's covered, and what's not covered, by the extended auto warranty you're considering. Does the contract cover breakdown as well as wear and tear? Under a "breakdown" warranty, coverage is extended only to parts that break. Such an extended auto warranty can prove less inclusive than is desirable, since not all parts fail due to breakage. Some need to be replaced because they've worn down over a period of time; a "wear-and-tear" warranty extends coverage to worn-down parts in need of replacement.
Additionally, some extended auto warranties don't cover TSB's. A Technical Service Bulletin (TSB) or Factory Service Bulletin is a notification by the manufacturer that a condition may exist on your vehicle. Sometimes there is a problem requiring immediate attention; often they are issued to facilitate a quicker diagnosis or repair procedures from your repair facility. It is common for a vehicle to have dozens of TSBs issued. Most companies will deny any claim related to a TSB. This is a huge coverage loophole.
Additionally, ABS brakes, so if your vehicle has this feature, you should consider upgrading to a higher coverage level (if available). And overheating, regardless of its cause, isn't covered in many car warranties. Thus, if overheating occurred due to problems with an expensive part such as your radiator, you'd be stuck with a hefty repair bill.
Before committing to an extended auto warranty, take the time to fully explore the ins and outs of its coverage implications. The distinctions between the various plans might seem slight, but they can prove quite important.
3. Why do I need an extended auto warranty?
Since common mechanical repairs can cost into the thousands and these costs are rising rapidly; protecting your automotive investment should not be taken lightly.
Whether you own a new or older make/model, an extended auto warranty will provide you with peace-of-mind protection regarding costly mechanical repairs that can happen at any time during the life of your vehicle.
Buying an extended auto warranty today will allow you to avoid paying higher rates later due to price increases and required surcharges due to the multitude of issues that develop as the vehicles flaws become public knowledge. You'll be able to immediately take advantage of your plan's benefits: towing, lost key/lockout, and car rental discounts.
4. Why should I purchase an extended auto warranty now if my vehicle is still covered by the manufacturer?
As your vehicle accrues age and miles, the price for an extended auto warranty will rise as do the repair costs that you would experience for an older, out-of-warranty vehicle. You are only buying total mileage coverage, not addition of mileage to your current total.
Capitalizing now on your vehicle's newness and low mileage is the most logical approach as you plan for inevitable future repair costs. An extended auto warranty will provide you with peace-of-mind protection regarding such expenses. Some are transferable, allowing for increased vehicle resale value.
5. What about the deductible?
Fully investigate a policy's deductible before signing on the dotted line. Consider not only its amount, but also whether it's per visit or per repair. With a per-visit deductible, each visit to the shop will run you a fixed amount, regardless of how many parts are repaired; a per-repair deductible applies to each serviced part. What sounds like a minor difference may, under certain circumstances, have a major impact on your wallet.
If, for example, you've got a $100.00 per-repair deductible and you take your car in to get the air conditioner, fuel pump and alternator serviced, you'll be out $300.00. Had you opted for a per visit deductible, those repairs would only have cost you $100.00.
There are still $0.00 deductible policies. You will have to pay extra for this type of extended auto warranty, but if your circumstances become such that you have to take your car in frequently, you'll find that this policy more than pays for itself.
6. What type of auto warranty can I buy?
Powertrain Warranty: Covers the engine, transmission, and other parts of the Drivetrain only, which is defined as the 29 parts of the vehicle through which oil flows. These are the parts least likely to fail.
The average vehicle contains thousands of parts. As it does not cover the majority of the components of a vehicle, the Powertrain Warranty is truly not an extended warranty.
Bumper-to-Bumper Warranty: Covers nearly all of the mechanical systems of the vehicle, from front bumper to back bumper; except for those on the "exclusion list", listing the parts that are NOT covered by the extended auto warranty. It is much easier for a consumer to see a short list of items that are not covered and know that everything else is.
Named Component Warranty: Covers the major mechanical systems of the vehicle from mechanical breakdown and mechanical failure. If the part is not listed, it's not covered by the contract.
NOTE: Some companies sell the same or similar plans as above, and use the term bumper-to-bumper. This can be misleading because it is always an inferior level of coverage.
Consumable items, such as brake pads or windshield wipers, are never covered. Roadside assistance and travel reimbursement plans are typically offered as part of the extended auto warranty package; even while the basic warranty is still in effect. Some even offer free lodging and meals if your vehicle breaks down on a trip.
7. If the manufacturer's warranty for my vehicle has expired, can I still obtain extended auto warranty coverage?
Many consumers do not realize that even after the manufacturer's warranty has expired, their vehicle is still eligible for extended coverage. You can generally receive coverage on vehicles that have less than 100,000 miles on the odometer. A vehicle out of its original warranty is more apt to have mechanical failure compared to a newer vehicle. For this reason, vehicle inspections are required. A good example would be life insurance. As you age, can you get a comprehensive life insurance policy without a physical and increased cost?
8. How does the claims process work?
The top warranty companies work like this: If your vehicle breaks down or is in need of a repair, take it or have it towed to any licensed repair facility and present your service agreement to the Service Department. After they diagnose the problem with the vehicle, they will call the claims administrator toll-free and receive repair authorization for all your covered repairs less a deductible where applicable.
All claims are paid directly to the repair facility of your choice with a corporate credit card; therefore, you do not have to pay for your repair and wait to get reimbursed.
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( 3 / 3553 )Saturday, April 8, 2006, 12:05 PM
by: Matthew Noel
The auto warranty is something everyone thinks about when they are purchasing a car, but few of these people realize that they need to think about it after that as well. You go into a dealership, which convinces you to purchase an auto that is perfect for you. What seals the deal, in many cases, is the fact that the auto has an auto warranty on it. You think that they could not or would not offer a warranty on a product that wasn’t up to standards. So, you purchase your car and get your auto warranty.
Regardless of the car, the make or model number, you simply shove that auto warranty into the glove box and call it done. But, what you need to do is to know what is covered on that warranty, what you need to do to get those services, and what you need to do to keep that warranty up to date.
Getting the information that you need to make a decision about your auto warranty is also important. For many people, they may not even realize that they should read the thing! You would be surprised at what is and isn’t covered in that warranty. If you have one and you haven’t read it, dig it out and get going.
What you will want to know first of all is what things it cover. Does the auto warranty cover things such as parts and oil changes? Does it cover the tires, brakes and the body work?
Now that you know that, do you know what to do to get the services that it covers? Read on. Learn where you will need to go to get these services, if there will be any fee and what happens if you don’t go to the right location.
Lastly, you also want to know about the auto warranty expiration date if there is one. In some cases, you may actually be able to increase that amount of time by purchasing a warranty extension. The auto warranty can offer many things after all.
About The Author
Matthew Noel
For more information please see http://www.auto-warranty-help.co.uk.
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( 3 / 4280 )Monday, April 3, 2006, 08:08 AM
by Gray Rollins
When you purchase a new car you may get a roadside assistance package included but if you have a used car you typically won’t have roadside assistance and the benefits it provides, such as towing services. Not to worry, there are many companies offering memberships that will give you peace of mind.
Parts do wear out over time. That’s why one of the biggest concerns a driver has is the fear of a breakdown that will require towing. As we all know these events always occur at the most inopportune time or when we don’t have the extra cash to cover a towing bill. By becoming a member of one of the many auto clubs that offer services, you’ll have peace of mind that when disaster strikes you’ll be covered.
AAA, or American Automobile Association, has divisions throughout all of North America. For a nominal yearly fee you’ll be provided with all kinds of services for you and your vehicle. You’ll have full roadside assistance. Whether you run out of gas, lock your keys in the car, get a flat tire, or break down, you’ll be covered. Planning a trip? If you need maps AAA will provide them. And if you’re thinking about taking a vacation to a sunny tropical destination, AAA has full travel services and can offer you some great prices.
Good Sam is another auto and RV club that offers excellent services to its members. It’s a camping club, motor home club, and RV club all combined into one. For under $80 a year you get a full year of roadside assistance for your RV, and all the cars, vans, and trucks in your household. You get a full year of emergency towing services, lockout services, and trip interruption services as well as emergency medical referral services.
Drivershield costs under $70 a year and offers a 24 hour toll free hotline for emergency towing, roadside assistance, and locksmith. It also offers a lifetime collision repair warranty that’s good from coast to coast as well as 50% off at thousands of motels, hotels, and dining locations across the country.
If you ride motorcycle and want the same type of protection for your bike as you have for your car, Bros Club Cycle Services is worth exploring. For less than $100 you will get a two year membership which will give you 24 hour a day 365 day a year emergency roadside protection, which includes a network of more than 40,000 flat bed service providers across the US, Puerto Rico, and Canada. You’ll get towing services, flat tire assistance, dead battery assistance, and you can even purchase your motorcycle insurance at a discount. You also get some great discounts at motels, hotels, dining locations, and parts providers.
It’s a given. At some point in your travels you are going to require towing services. So why not consider a membership in one of the many national auto club programs that will give you peace of mind? Gray Rollins is a featured writer for UpTowing.com. To learn more about towing services and towing companies, visit us.
Article Source: http://www.bigarticles.com
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