Protect Your Vehicle and Your Wallet With an Extended Auto Warranty

Date posted: April 16, 2013

A vehicle is one of the biggest purchases you will make, and for most people, one that you will put to use every single day. Especially if you are buying a used car, you want to perform regular maintenance to protect your vehicle as it ages and increases in mileage. No matter how well you maintain your car, though, chances are that it will need a repair at some point, and those unexpected repairs can really put a dent in your budget. One of the best ways to protect yourself against the cost of unexpected repairs is an extended auto warranty.

What is an extended auto warranty?
An extended auto warranty is an agreement between the car owner and a warranty company, obligating that warranty company to pay for repairs covered by the contract for a specific period of time. With an extended auto warranty, you are protecting yourself from the unexpected cost of mechanical failures. One major repair often ends up costing as much, or even more than the entire cost of the warranty.

What does an extended warranty cover?
CARCHEX, one of the leading providers of extended auto warranties, offers two types of extended warranties; one is called an exclusionary contract and the other a listed component contract. An exclusionary contract is commonly referred to as bumper-to-bumper because it will only list the items not covered, making it the most comprehensive plan available. Typically those are regular maintenance items, oil changes, tires, batteries, insurance related issues, and things along those lines. If it does not mention a part that will not be covered, then it will be covered under the contract. Exclusionary contracts are usually offered to vehicles with less than 60,000 miles on the odometer.

Listed component contracts will list out the components covered for each of the systems included in the plan. The number of systems and parts are usually determined by the age and mileage of the vehicle. If a listed part breaks under this agreement, then the claim will be paid. These plans can still be very comprehensive and are an excellent option for a vehicle with over 60,000 miles on the odometer.

Why do CARFAX customers need an extended auto warranty?
No matter how well you or the previous owner of your car have cared for your automobile, there are certain parts of a vehicle that eventually will wear out. Since common mechanical repairs can cost into the thousands and these costs continue to rise, protecting your automotive investment is important. An extended warranty can save you a lot of money over the life of a used car.

Buying an extended auto warranty today will allow you to avoid paying higher rates later. Extended vehicle protection plans cost less the earlier you buy them because the price increases as your vehicle ages and accrues mileage.

Added benefits of a CARCHEX warranty include 24/7 roadside assistance, towing benefits, and rental car discounts. You are able to immediately take advantage of these benefits when you purchase an extended auto warranty from CARCHEX. Extended vehicle protection plans are customizable, allowing you to choose the repair location as well as pay with an affordable payment plan.

Did you like this? Share it:

2 thoughts on “Protect Your Vehicle and Your Wallet With an Extended Auto Warranty

  1. An extended warranty is ideal for someone on a fixed budget who does not want to be surprised with expensive repair bills. If that describes your situation, and you plan to keep your vehicle longer than the length of the original manufacturer’s warranty, an extended service contract may be right for you.

  2. N.J. AG sues auto warranty company after almost 250 complaints

    February 28, 2014 9:18 AM
    By Bryan Cohen

    Hoffman
    Hoffman

    NEWARK, N.J. (Legal Newsline) – New Jersey Acting Attorney General John Hoffman filed a lawsuit on Wednesday against a vehicle repair coverage plan provider that allegedly refused to pay consumers when repairs were needed.

    Direct Buy Associates Inc., which does business as Direct Buy Auto Warranty, allegedly violated the state’s Consumer Fraud Act by advertising its vehicle service contractors as warranties. Warranties are offered by the manufacturers or sellers of products, but service contracts are offered by third-parties like Direct Buy Associates.

    Additionally, the vehicle service contracts Direct Buy Associates sold allegedly provided limited coverage and various exclusions.

    “Consumers are out thousands of their hard-earned dollars because of the alleged business practices of this company,” Hoffman said. “We are seeking court approval to get restitution paid back to the affected consumers.”

    Close to 250 consumers nationwide filed complaints against Direct Buy Associates, one of the highest amounts against any active company in New Jersey. Some consumers alleged they had to pay for repair costs themselves when the company denied repairs covered under the plan. Other consumers alleged they did not receive full refunds in a timely fashion when they attempted to cancel their contracts.

    The lawsuit seeks the assessment of civil penalties, reimbursement of legal fees and consumer restitution.

Leave a Reply

Your email address will not be published. Required fields are marked *

*