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Auto Warranties: How Does the Condition of the Car Affect the Cost
If you’re shopping around for auto warranties, you need to bear in mind that every auto warranty plan comes with certain limitations or conditions. Most auto warranty companies list your coverage inclusions on the warranty contract. However, since most companies largely promote the auto warranty inclusions and often fail to disclose what’s not covered by the policy, you need to review the contract carefully. While some companies charge you a deductible amount, others might limit the number of claims you file within a given period. You may also have to pay the entire cost of repairs upfront and have the company reimburse you this amount after you send them your receipts. Remember, you also stand a chance of having your claim denied. All auto warranty companies list certain requirements that you need to follow, so that you can avail of the benefits from your policy. Some companies also determine the condition of your vehicle before giving you an auto warranty quote.
Pre-Existing Conditions
Before offering you an extended auto warranty plan, several companies inspect your vehicle to determine if it has any pre-existing conditions. If the car has an old engine or bad transmission, you’re likely to be offered a policy with limited coverage. Despite the fact that your vehicle has a pre-existing condition you can choose to purchase a higher coverage if you’re willing to pay a high price. Used vehicles in particular are given a higher auto warranty quote. Certified pre-owned vehicles on the other hand, are available with the limited manufacturer warranty and the extended certified car warranty program. Although the cost of purchasing a certified pre owned car may be higher than that of a used vehicle, you’re likely to benefit in terms of auto warranty.
Clauses
Certain companies also list clauses regarding pre-existing vehicle conditions, on the contract. Even after passing a vehicle inspection, if the company can prove that the car had a pre-existing condition that caused the damage for which you’re filing a claim, they will deny your claim. Apart from this, some companies won’t cover wear and tear expenses and damages caused by aftermarket parts that were installed in the vehicle. You will thus have to reconsider purchasing an extended warranty, if your car has been significantly re-modified or tampered with, else you will have to bear the cost of repairs.
Condition of the Car
As a car owner you are also required to follow routine servicing schedules explained in the owner’s manual. If you fail to do so, you’re claims will be rejected and this might also void the warranty altogether. You have to keep to the requirements mentioned on your contract so that the condition of the vehicle doesn’t deteriorate.
In order to buy a plan that offers you good coverage at a reasonable price, use online auto warranty comparison tools offered by CARCHEX. This will allow you to compare the policies offered by various aftermarket auto warranty companies. Although price matters, you have to also make sure that you deal with a reliable company that has quick claims handling and high consumer satisfaction rating.
