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According to Forbes, in the first quarter of 2012, the average new car cost an estimated $30,303. To most Americans, this is one pretty penny. And with such an investment of your resources, wouldn’t it be a good idea to keep it protected? A word that is thrown around a lot in the automotive industry is the term: extended car warranty. If you were to ask almost any new car buyer if they have an extended car warranty, they will most likely answer “yes”. This is because the term has numerous vague meanings that people associate with it.
There are various forms of protection for your vehicle, but the best way to distinguish one from another is to examine each one’s key components. To be safe and ensure you know exactly what form of coverage you have, listed below are a few terms that can be commonly referred to as an extended car warranty.
Manufacturer’s– This is the warranty on your new vehicle in which the manufacturer states to repair your vehicle for a specified period of time and/or mileage. These are typically instated for 3-years/36,000-miles but can vary among manufacturers. These warranties are generally not all-inclusive; review your warranty agreement for coverage details and specifics.
Product– This type of warranty only covers a specific product and any other parts that are in direct contact with it. For example, brake pads may come with a 90-day warranty stating that they will not fail, but this warranty could not extend its claims by stating that the car’s tires will not fail.
Vehicle Service Contract– These contracts are purchased by consumers to cover the costs associated with expensive repairs. Just like the Manufacturer’s Warranty, it covers parts, labor, and sales tax for specific repairs based on coverage. With countless providers promising the world on a string, it is best to find one with an established reputation.
Auto– This is actually an incorrect term that most commonly refers to a vehicle service contract. This term is also known as a/an: Vehicle Service Agreement, Extended Service Agreement, and Extended Warranty. Whereas a Vehicle Service contract will pay for your vehicle’s repairs based on contract agreements, a warranty must come from the manufacturer, demonstrating the term’s inaccurate label.
The term extended car warranty is almost a deceptive term in general, seeing as for it to be true the manufacturer would have to be the one extending it. Many dealerships sell these “extended warranties”, however, they are merely the same contracts that you can purchase from a third-party provider.
When looking to extend your warranty (in reality extending coverage for your vehicle), make sure that you examine your contract closely. Read your contract and ensure that the coverage is the right coverage for you and that your needs are fully protected.
Endurance Vehicle Protection is the nation’s premier provider of extended vehicle coverage. By administering our very own Endurance coverage plans, we are able to “cut out” the middleman and pass along these savings onto our valued customers. This also means that throughout the entire life span of your contract with us, you will be dealing directly with us and not a third-party company. We believe in empowering confidence for the road ahead but we also believe in empowering consumers to buy with confidence.
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By clicking the button, you consent to Endurance using automated technology to call, email, and text you using the contact info above, including your wireless number, if provided, regarding auto protection or, in California, mechanical breakdown insurance. You also agree to the Endurance Privacy Policy and Terms and Conditions. Consent is not a condition of purchase, and you can withdraw consent at any time. Message and data rates may apply.
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Alex has worked in the automotive service industry for over 20 years. After graduating from one of the country’s top technical schools, he worked as a technician achieving a Master Technician certification. He also has experience as a service advisor and service manager. Read more about Alex.