When is an extended car warranty covering mechanical components of no value?
As you learn more about extended car warranties hopefully you'll soon discover that there are two types:"wear and tear" warranties and. mechanical breakdown warranties. And no, they aren't the same thing.
Without any specific legal advice there is some general information that you need to know. You will need to not only know but understand how wear and tear versus mechanical breakdown is defined. While you may see the term mechanical breakdown used in a contract don't assume that that covers any event that may occur. Depending on how the company issuing the warranty defines the terms that's what's covered by the warranty.
You will need to inquire of the firms you are considering buying an extended car warranty from if they offer both types of coverage. In many cases wear & tear is an option. As such it will add to the cost of your plan.
The first question you must answer is this: why do I need wear and tear coverage? With older cars the moist common cause of a mechanical breakdown is wear and tear. And without this add-on coverage you may have your claim denied. Most consumers assume that their extended car warranty covers these types of claims, however, if wear and tear is not explicitly covered in the auto service contract, then, most likely all you're being offered a mechanical breakdown warranty.
Here's another important question: What is covered under a wear and tear warranty?
Wear and tear warranty coverage refers to those parts or components in your car that are worn beyond factory tolerances. What does this mean, and this is important, it means that a part doesn't have to break to be covered.
For example, you take your car into your shop for preventative maintenance. In completing the service your mechanic finds that there is a developing problem with your automatic transmission. It's fine right now, but you may soon encounter problems because of wear and tear. Do you see the importance of a wear and tear warranty plan?
Simply put this means that if a mechanical component wears out before its time, it's covered!
Without your having to become an auto mechanic let's just say that there are many car parts such as piston rings, U Joints, CV joints, wheel bearings, motor mounts, suspension bushings, tie rod ends and several other mechanical parts that gradually wear out.
Having an extended car warranty that covers wear and tear you can avoid even more expensive costs and lost time because of the car being tied up for a longer period of time.
Again when looking into extended car warranties it is a "buyer beware" market. You really need to follow these simple guidelines:
- Who administers (pays the claims) the coverage?
- How does a company define what they will pay for?
- Will the coverage provider pay the retail labor rate your dealer charges?
- What does the fine print say?
- What are reliable independent resources?
Your ability to understand mechanical warranties and wear and tear warranties is important. By making informed decisions you may avoid undue problems in the future.
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