(Newswire.net — February 24, 2020) —
Many customers are likely to save after their initial warranty runs out if they invest in an extended warranty, also known as a vehicle service contract. Even the most meticulous drivers find much is outside of their control, and a vehicle service contract can add an extra layer of security for customers. In this article, United Car Care reviews the savings that can be achieved with vehicle service contracts, the potential hiccups new technologies can bring, and the coverage options for extended warranties.
Savings Provided by Extended Warranties
For owners who plan on keeping their vehicle after the initial manufacturer’s warranty has expired, a vehicle service contract can save thousands of dollars in repair costs. Most drivers are familiar with how collision insurance coverage works together with liability coverage: pay the premium and repairs for damage from an accident will be covered. However, the much more common situation for vehicles as they age are repairs for things like fuel pumps, fuel injectors, power windows, transmissions, air conditioners, and other major auto systems. Even minor repairs can lead to large expenses once your vehicle is at the repair shop.
Your personal savings will be based on a number of variables, including the age of your vehicle, its overall condition, and how well you perform regular maintenance. When evaluating a vehicle service contract, find out what repairs are covered and whether roadside assistance is included in the policy. Find out where you can have your vehicle repaired and look for a stable company with a quality Better Business Bureau profile.
New Technology and Extended Warranties
Modern vehicle technology is advancing so rapidly that it is virtually impossible to catalog it all in real-time. Because so much of new vehicle technology is unfamiliar to drivers and even many mechanics, it is impossible to judge exactly which systems might need repair or modification following an initial warranty period. Many drivers are naturally worried about technology system failures that can fall outside of an initial warranty period, and technology-based features are among the most common items addressed under vehicle service contracts. An extended warranty that covers these types of repairs can provide peace of mind for drivers who are concerned that an unanticipated repair based on technology failure can create a great financial hardship.
Extended Warranty Coverage Options
When considering a vehicle service contract, be sure to evaluate the different coverages available. Your particular needs will guide your decision about what kind of policy to select.
Powertrain warranties are typically chosen for older and high-mileage vehicles. The coverage usually includes engine components and transmissions. Powertrain coverage applies to most of the more expensive repairs that vehicles need after an initial warranty period.
Bumper-to-bumper coverage is more comprehensive and in addition to powertrain repairs covers major mechanical systems. There are normally some components that are not covered by bumper-to-bumper coverage and a vehicle service contract should clearly explain which items are excluded from coverage.
Named component coverage can cover any number of auto systems or components. Unlike bumper-to-bumper coverage, named component coverage provides a specific list of items that are covered under the policy. Anything not listed as a named component will not be covered.
You should match the coverage you need with your particular vehicle and your expectations about how long you will keep your vehicle.