Warranty Coverage
When deciding which warranty coverage to select,
you are going to have number of plans to choose from. Before making
any purchase, request a sample contract that you can review. If the
warranty company refuses to provide a sample contract, that a big
red flag, don’t purchase from them. Most warranty companies
offer two types of plans- a listed plan and an exclusionary plan.
Exclusionary plans are more comprehensive given that they cover everything
on the vehicle with the exception of some excluded items, like routine
maintenance parts (tires, wiper blades, brake pads, ect.). Listed
plans are the direct opposite- the plan will give you a list of covered
parts, and if the parts not listed, it’s not covered (commonly
used throughout manufactures).
->Exclusionary Plans
Exclusionary plans are the most comprehensive,
aside from your original manufactures warranty, and are generally
offered through online warranty providers. Instead of giving you a
long list of covered components in the contract, you’re going
to get a small list of excluded items. These excluded parts are usually
routine maintenance and cosmetic. Listed plans don’t work so
easily; you constantly have to refer back to your contract to see
if a part is a covered. If it’s an exclusionary plan and the
parts not listed as an excluded item in the contract, then it’s
covered.. All warranty companies will be a little different, so it’s
very important to read the contract’s terms and conditions (request
a sample contract).
->Listed Plans
Listed plans are just that, a plan with a
list of covered components. The easiest way to identify whether or
not it’s a listed plan is to see if the contract has a “what’s
covered section” or “covered parts section”. Most
of these contracts will start the list with the engine and work there
way down to the suspension, transmission, electrical and so on. Just
remember, if the parts not listed, its not covered.
->Mechanical Breakdown vs. Wear & Tear
When purchasing an extended auto warranty plan your going to want to
know if it covers mechanical break down or wear & tear. Mechanical break
down means that the part that is failing on your vehicle must completely
break before it is replaced. Wear & Tear coverage means the part will be
replaced before it completely fails. This is better coverage to have given
that most parts don't completely break right away. Here's one example- a
power window slowly going up and down. This would not be covered under a
mechanical break down warranty, because technically it still functions.
However, if you got a warranty the covers wear and tear, it would be covered.
Remember, each company is going to be different, so always review a sample
contract before purchasing.
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