Auto Warranty Group

Auto warranty coverage against mechanical failures and breakdowns

When you buy a new car, a manufacturer's service contract will protect you for a certain number of years or miles, and this warranty will pay for any necessary repairs, less the cost of maintenance items like electric light bulbs, batteries, and car tires, for example.

The way to find the best auto warranty coverage against mechanical failures and breakdowns is to do your research. There are many types of vehicle warranties, some fairly wide-ranging, others partial or supplemental, each designed to meet your needs for your car and fit your budget. In most instances, mechanical failures are covered by the main service contract and breakdowns are covered by supplementary or complementary warranties that offer 24-hour roadside assistance, towing, car rental, and travel interruption protection.

Here are five ways to do research:

1. Ask those who might know-family, friends, and colleagues who have an extended warranty.

2. Surf the Internet, visiting corporate websites, checking reviews, perusing blogs, and asking questions on forums. You'll find these by typing in the relevant keywords into a browser's search engine box. The Internet will allow you to scan a plethora of information fast, and you can review the differences between companies and between diverse types of service contracts.

3. Use the business pages of a telephone book and talk to company representatives.

4. Visit the offices of some of the companies you want to do business with and find out more from an informal face-to-face interview with a company representative.

5. Contact a chamber of commerce, consumer protection group or government agency and ask for a list of recommended car warranty companies. Usually, they have a ranking system. For example, companies that have an excellent rating with the Better Business Bureau are given an A+ rating.

Once you've found the right company, one that offers you an extended warranty that fits your needs, your next task is to make sure you understand the service contract. You can do this by reviewing the corporate website, reading the company literature, talking to a customer service representative, and, of course, reading the entire service contract itself, including the small print.

Usually, it is easiest to get an extended warranty while your factory warranty is still in effect. This will allow a seamless transition from the factory warranty to the extended warranty without any interruption in protection. However, it is still possible to buy an extended warranty after the factory warranty has expired. If you do, there may be a certain lag time before the new warranty goes into effect. This can be due to one of two possibilities: one, inspection and approval of your car; and, two, a waiting period. In order to avoid taking on a car that has pre-existing mechanical problems, a car warranty company will ask that a car be inspected first. If mechanical problems are found, these must be fixed before the car can be approved. Another car company, on the other hand, may require that a certain calendar date or mileage limit be reached before the car can be protected with a warranty.

I am a financial advisor who writes primarily about credit and personal finance.

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