Different Types of Auto Extended Warranty


There are different aspects that you must evaluate when purchasing new or used vehicles. This will help you identify an automotive which matches your requirements without resulting in financial burdens. One of the most important elements to consider is the extended warranty. This is an aftermarket warranty coverage that remains active after the basic manufacturer's warranty expires. The additional period can vary depending on factors such as the car model, your budget and the auto dealership. Extended warranty plans are favourable, because they can be tailored to suit specific needs. In addition, the coverage will protect you from potential costly repair costs if important components are damaged. Here are the main types of covers to choose from if you are thinking about getting an extended warranty.

Bumper to Bumper

The bumper to bumper coverage is a comprehensive warranty that provides the best protection for new vehicles. It is technically known as an exclusionary cover, but other terms such as luxury coverage or wrap plan are also used. This warranty will cover almost all the components of the vehicle, so it is fairly expensive to purchase. Moreover, it is not available for old used cars because of the risk involved. On the other hand, you should note that there are components that are not included in this policy. These will be listed in the documentation, so you should ensure that you know the details before accepting the warranty.

Stated Component

Stated component warranty is technically known as the inclusionary coverage. It is a good extended warranty plan that covers almost all the major components in the vehicle. The level of protection is not as excellent compared to the bumper to bumper, but you will get a plan for most used vehicles. If your vehicle does not qualify for the luxury choice, the stated component is a good alternative. The policy will provide an explicit list of all the components that are included in the cover. Most dealerships will allow you to choose the level of coverage you need by identifying the components you want listed in the warranty.

Powertrain Coverage

As implied, this extended warranty plan is designed to cover the vehicle's powertrain. This includes the most critical auto modules like the engine and the transmission. You can also purchase an enhanced powertrain cover, which covers a few more components like the AC unit and the starter. This is a good choice for used vehicles which can be costly to repair in case of breakdown.

You should explore all your extended warranty options before settling.


31 August 2015

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