Extended Auto Warranty Facts

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Extended service contracts are typically referred to as an extended auto warranty. They are most typically a promise to pay the repair facility to replace or repair a covered part and/or component that has failed or worn beyond the manufacturer’s tolerances.

There are many differences in extended service contracts (extended warranties). Be sure that you are doing business with a reputable company with a long history of paying claims. Call the warranty company to learn of the services and available coverage. Price is always important but also consider the service at the time that you need it most, during a breakdown or repair. It is at this time that the true value of the company is demonstrated.

Most vehicles in today’s marketplace come with only a 3 or 4-year warranty from the manufacturer. Cars would become too expensive if manufacturers placed longer warranties on them. And the local dealerships would lose some very important “service business”.

Today’s vehicles can be very complex and costly to repair. Protecting yourself with an extended warranty from a reputable company can help to avoid a potential budget-destroying...

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