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AUTO WARRANTY EDUCATION
There are many different kind of auto warranties
available. With the right knowledge, not only will you
find a warranty that can save you money, you will also
find a warranty that is specific for your needs.
Car warranties come in different forms and are called
either, extended warranties (also known as vehicle
service contracts or mechanical breakdown insurance) or
manufacturer's warranties. Each one of these types of
warranties are different. Below is a breakdown of each.
Extended warranties
Extended warranties are contracts between you and the
warranty provider. The contract states that if a
component or part from your vehicle breaks, or becomes
worn out, the price to fix is paid for by the warranty
provider, not the car owner.
Most extended warranties also offer the following.
-- 24/7 road side assistance.
-- Help getting into your vehicle if you have become locked out.
-- A boost to your battery if your battery has died.
-- Fixing flat tires when your car becomes disabled.
-- Free towing.
The list above are the common extras of all extended
warranties. Every extended warranty can offer more than
what is listed below. When in the market for a warranty,
do your research and figure out what is being offered and
if your needs are going to be satisfied.
Auto extended warranties are controlled and regulated by
Federal and State laws. These laws and regulations will
vary from state-to-state. When in the market for an
extended auto warranty, you should check out
A.M. Best & Company.
This company is an independent insurance analysis and
rates all of the extended warranty providers in the
United States. You should never go with a company that
has nothing lower than an 'A' rating.
Star Loan Services recommends
SmartAutoWarranty.com for your extended warranty. You can buy an auto warranty direct from
them and save 60%!
GET A FREE EXTENDED AUTO WARRANTY QUOTE!
Manufacturer’s warranties
These types of warranties are issued by the the
vehicle manufacturers. They
protect certain components for a predetermined amount
of time and miles. By law, these types of warranties must
cover factory installed parts for defects or workmanship.
New cars come with two types of manufacturers warranties:
-- Basic warranties - Covers most component parts. They do not cover
parts that need replacement as a result of normal wear
and tear from driving, i.e. breaks, belts, filters,
windshield wipers, etc..
-- Drive train warranties - This type of warranty
kicks in at the conclusion of the basic warranty. Drive
train warranties cover only the vehicle's engine, axles,
transmission, and driveshaft.
New autos may also come with 'Rust Warranty' which
obviously protects your car from and type of abnormal
rust or corrosion.
Passive-Restraint systems must be covered for 5 years or
50,000 miles and Emissions Equipment for 8 years or
80,000 miles. This is the Federal Law.
Manufacturer’s warranties usually cover 48 months or
48,000 miles up to 72 months or 72,000 miles. Check with
your dealer about the specifics of your vehicle.
Certified pre-owned vehicles offer warranties. Learn more
about certified pre-owned vehicles.
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