An extended Auto Warranty coverage: A prolongation of benefits
Purchase of a car is categorized as an investment. With this purchase, you get entitled to a warranty either by the dealer or the manufacturer. This warranty is applicable for a period of five to seven years which is equivalent to 50, 000 miles. Even a warranty of 10 years is also provided by a few manufacturers. A ten year limited warranty is equivalent to 1, 00, 000 miles of coverage. But after the expiration of this period of warranty you will solely be responsible to bear all the costs of repairs and maintenance and breakdown.
At this point you should get your car covered by an extended warranty. Extended auto warranties are meant to cover all costs incurred due to body damage and engine problems. Even the cover extends to compensate for the expenses arising out of normal use. So, for another three to five years you will just relax without having to spend a huge amount of money for repairs right out of your pocket. So, invest a little more on extended warranty.
Many car dealers may be operating in your locality and you would be given many extended auto warranty plans by many of them. But you should note that they would charge you higher than the factories because these dealerships subcontract the policies to other companies. Instead you should derive policies from those companies which are not sub- contractors of the dealerships.
Usage of your car plays a vital role in deciding whether you need an extended warranty or not. If the usage is a moderate one you do not need an extended warranty but if the usage is a tough one then you should go for an extended warranty plan. An example of a heavy or tough usage may be handling of equipments in your car on a regular basis.
So, if you extend the warranty for another three to five years, then you are actually avoiding a risk of paying for the maintenance and repairs of your car yourself!
