Extended car warranty insurance is the safest way to ensure that your car’s mechanical parts are covered for as long as possible, giving you peace of mind when you travel long distances.
What is extended warranty insurance? Do you really need to buy an extended car warranty? If so, how can you buy an extended warranty?
Before proceeding to answer these questions, let’s first have a look at what an extended warranty is, and how different it is from car insurance.
What is a car warranty?
Warranties and insurances are great investments to add to the purchase price when you buy a car. In fact, these two go hand and hand to protect the buyer’s interest; however, they serve different purposes. People often think that warranties and insurances as one and the same. However they are not. They are both available for use when your car needs to be repaired, but the circumstances in which they need to be repaired are different.
Warranties are guarantees that when a car part is broken due to any natural causes, the user can have it repaired without paying extra given that it is still within the warranty’s duration. Let’s say a one-year old car’s gearbox breaks and it needs to be repaired. The owner will have it repaired under the car’s warranty and not it’s insurance. Conversely, should the driver of the car end up in an accident, the car will be repaired under the owner’s insurance policy.
Car warranties are only valid for a certain number of kilometers/miles or a limited number of years. The parts covered is dependent on the tier the buyer purchases. The type of warranty offered is also dependent whether the car bought is brand new or a used one.
What is an extended warranty?
An extended car warranty is a guarantee that the insurer will pay for the repair of the specified car parts, should they malfunction for a specified time. An extended warranty is usually purchased for when the car’s manufacturer’s warranty has expired.
Here is a quick guide to extended car warranty by Warranty and Insurance if you want to learn more about extended car warranties. But to give you a head start, here are a couple of tips to help you understand what an extended warranty is and how you can utilize it to your benefit:
Extended car warranties have a limited shelf life.
Extended car warranties differ in the length of time that they are valid for. Some might last for two years, while others will last for 7 years, for example.
Extended car warranties are usually provided by a third party broker.
The initial car warranty that comes with a new car is usually provided by the manufacturer; conversely, extended warranties are usually handled by third party providers. It is important to review your options when looking at which extended warranty policy to purchase. There are third party services that have a reputation of not paying for claims, while others are well-structured, well-priced and pay for valid claims.
This is a quick guide on understanding extended warranty insurances. Should you wish to know more, you can take a look at reasons to buy an extended car warranty by Warranty and Insurance to determine which extended warranty suits your needs.