that is often asked about aftermarket warranties is whether they cover
the transmission, and if so, is the coverage sufficient to pay the cost
of having the transmission replaced or rebuilt, if needed.
The answer is; "some do and some don't" - it all depends on the type of
coverage you purchase.
of Aftermarket (or Extended) Auto Warranties
There are three main categories of
aftermarket auto warranties, Bumper to Bumper,
Powertrain and Stated
Bumper-to-Bumper Auto Warranty
A bumper-to-bumper warranty does not
actually cover everything from the front bumper to the rear bumper -
nor does it cover the bumpers. However, a bumper to bumper
auto warranty is the highest level of auto warranty coverage you can
purchase after the manufacturer's warranty expires.
Typically, bumper to bumper coverage is only available for newer
vehicles with 50,000 or fewer miles.
You might also
hear a bumper to bumper warranty being referred to as an
exclusionary warranty. This is because the warranty covers
more of the vehicle than could be realistically listed in the
agreement, thus it is easier and less confusing to list the parts that
are excluded (not covered) under the warranty than to list everything
that is covered. Bumper to bumper extended auto warranties
are typically the most costly simply because they provide the widest
Powertrain Auto Warranty
aftermarket auto warranty covers exactly what it says; the vehicle's
powertrain. In a rear wheel drive vehicle, the powertrain
includes the engine, transmission, drive shaft, rear differential and
wheel axles. In a front wheel drive vehicle, the powertrain
includes the engine, transaxle and drive axles, or
powertrain warranty covers the parts of the vehicle that are the most
costly to repair when something goes wrong. Depending on the
vehicle year and make, the cost to replace a blown engine or a failed
transmission can easily reach in the thousands of dollars.
Owners of mid
to high mileage vehicles typically opt for a powertrain warranty over
the other options. These warranties are more reasonable in
terms of cost because of their limited coverage. But, for the
vehicle owner, the coverage is for the most crucial and costly parts of
the vehicle - so it can be a good fit under the right circumstances.
Stated Component Auto
component auto warranty covers only the parts of the vehicle that is
listed (or included) in the coverage agreement. Also called
an �inclusionary� warranty, these policies typically cover most of the
major parts of the vehicle as well as many of the smaller
components. The nice thing about a stated component warranty
is that there is no gray area of coverage; if a part of the vehicle is
not specifically stated as being covered in the contract - it�s not
vehicles with between 50,000 and 100,000 miles typically choose a
stated component warranty because it is more similar to a
bumper-to-bumper warranty in terms of coverage.
on buying an aftermarket warranty for your vehicle(s)
the value of your vehicle. When considering an
extended warranty for your vehicle, do some research to determine the
resale value of the vehicle. In most instances, it does not
make sense to buy an extended warranty if the cost for
coverage is near to, or greater than, the value of the vehicle.
Your Desired Level of coverage. Take a few minutes to think
about what you want to accomplish with an aftermarket
warranty. In other words, try to determine the level of
coverage that would be the most beneficial to you and your
situation. A review of your vehicle's repair
history might give you some indication as to what to expect down the
road. Also, consider your financial situation - maybe you
feel comfortable paying for the small repairs out of your pocket and
getting coverage only on the big ticket repairs such as the engine and
Comparison Shop. Once you know the value of your car,
pick-up, van or SUV and you have a good idea of the level of coverage
you feel most comfortable with then it's time to do some comparison
shopping. You'll want to visit several provider's Websites to
compare the different offerings, pricing, etc.
4. Read the contract. The only way to know
whether the plan you have chosen will provide the coverage you want is
by reading the contract. We recognize that most contracts are
lengthy and not written in easy to understand language but it is
crucial that you read it. So, be sure to read
the agreement from beginning to end.
Q: How much do extended warranties
The main components that determine the cost of an extended warranty is
the year, make, model and mileage of the vehicle being covered and the
level of coverage (or warranty plan) you choose. You should
obtain quotes from several providers before making your final decision.
quotes from different extended warranty providers, be sure you are
comparing apples and apples. In other words, for the price
comparison to be of any value, the warranty plans must have the same
coverage and deductible.
Q: What's covered?
depends of the warranty plan you choose, which can range from a bumper
to bumper plan or a more specific plan like the engine and drivetrain
only. You will need to decide what is important to you and
then consider the pricing for the different levels of coverage before
making a decision.
Q: Is there a deductible?
A: Yes, a typical deductible amount is
$50 but higher deductibles are normally available. Choosing a
higher deductible, a $100 deductible for example, will be considerably
less costly than the same warranty coverage with a $50 deductible.
Q: How does cancellation
of an extended warranty work?
A: Normally an extended warranty plan
can be cancelled within 30 days for a full refund. Plans can
be cancelled after 30-days for a pro-rated refund for the unused
portion of the plan.
an Estimate online