By understanding the terms, conditions and provisions of an extended auto warranty, you can determine if the added protection is right for you. Do keep in mind that when you purchase a new automobile, the manufacturer provides you with a relatively comprehensive warranty at no additional charge. As a general rule, an extended auto warranty expands the term that the manufacturer's warranty will remain in place. For example, there are warranties available that will expand the length of coverage from a standard three year term to five or even ten years. (In some instances the extended warranty will also broaden the items that are covered by at least some degree.)
When considering the purchase of an extended auto warranty, you need to closely examine what precisely you will gain by paying additional money for the added protection. As mentioned, the primary benefit that can be had by purchasing most extended warranties is a lengthening of the amount of time the automobile will be protected by the warranty coverage. Extending the warranty may not make practical sense in some situations. For example, if you have purchased a new automobile that comes with a standard three year warranty coverage, you will not want to obtain extended protection if you will not own the car much beyond the three year term.
Some extended auto warranty plans also expand the breadth of coverage. If you tend to be "hard" on a car, if you tend to incur a significant number of bills for auto maintenance, repair and the like, an extended and expanded warranty program that will provide broader coverage may be a perfect idea for you.
There are a number of oftentimes overlooked elements associated with an extended auto warranty that are extremely important. First of all, many extended auto warranty plans require you to obtain service work on your vehicle at a specific location. Many such plans require you to obtain service work at the dealership or at another specifically authorized service center. If you obtain service work elsewhere, you may void or cancel the warranty all together.
Another common provision on most extended auto warranty plans oblige you to obtain regular service on your vehicle within specifically delineated timeframes. A failure to obtain such service will result in the voiding or cancellation of the warranty.
In the final analysis, before you spend additional money on an extended auto warranty, you need to take the time to weigh and balance the costs and benefits, the obligations and recompenses that are associated with the proposed warranty plan. By doing your homework in advance of enrolling in any extended auto warranty plan you will make certain that you elect the coverage that best meets your particular needs.
Resources:
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