How to extend warranty on your motor insurance policy easily?
Vinay was looking for a solution to ensure that his car is protected from all the manufacturing defects and extends his warranty. Fortunately, one of his friends was familiar with the benefits offered by an extended warranty insurance policy. Let us take a look at what extended warranty motor insurance is.
What is extended warranty insurance?
An extended warranty insurance policy is a written assurance that provides additional protection to assets that are damaged because of manufacturing defects. It is a unique motor insurance policy with the option to extend the warranty coverage for an additional number of years. Some motor extended warranty insurance also covers tires, regular maintenance, such as oil changes.
Motor Extended warranty insurance is an extended vehicle service contract that pays for repairs after the manufacturer’s warranty on a car expires. This motor extended warranty insurance is also offered by the dealer or a third-party supplier. It works similarly to insurance coverage in which a deductible usually applies prior to repairing their vehicle. This is how Vinay was able to extend the warranty on his vehicle.
This motor extended warranty insurance is different from the manufacturer’s warranty as comes standard with each new car. A manufacturer warranty usually provides comprehensive coverage for three years or more. Moreover, in some cases, powertrain warranties may last even longer up to five years.
What are the advantages of Extended Warranty Insurance?
- Repair and replacement:
All consumers have a manufacturer-provided warranty. This warranty is provided for up to 6 to 12 months for varying parts. Motor Extended warranty Insurance has benefits such as repairing the asset even after the manufacturer-provided warranty ends. Moreover, replacement is also allowed depending on the terms and conditions of your policy if no repair is possible.
- Affordable cost:
The cost to operate and maintain each asset purchased should not be based on its price. It provides periodic servicing to keep them operating effectively. Motor Extended warranty insurance covers your asset cost of servicing. Without having to worry about the charges you can take the services of an expert and thus less chances of a breakdown.
- Flexible plans:
Motor Extended warranty insurance plans cover the flexibility of insurance according to your needs. For instance, with three-year of coverage, you can opt for a policy. This can be based on your requirements and the asset requires repairing.
- Free home visit at the claim:
At the time of claim purchasing, motor extended warranty insurance by way of rejection of any charges that are required for inspection. You can be sure that these expenses are covered by your insurer and require initiating a claim for repairs.
- Coverage up to invoice value:
Motor Extended warranty insurance has the benefits of offering insurance coverage right up to the invoice value of your product. This way, you can assure your product lasts in the long run as well.
- Buy at later date:
Extended warranty insurance is one that you do not need to purchase only at the time of initial purchase. Within six months of the date of invoice, some motor extended warranty insurance companies also offer the facility to purchase it at a later date.
What do Motor Extended Warranties cover?
- Each warranty can be different in its way, as it doesn’t cover the results of normal wear-and-tear.
- Routine maintenance is also not covered, and whether is roadside assistance or although some dealers provide this perk as a separate purchase.
- Tires are covered but not all, in motor extended warranties.
- Covered for unexpected, unpredictable issues
How much do Motor Extended Warranties cost?
Motor extended warranty insurance costs vary from dealer to dealer, and widely depend on your vehicle specifications. The car’s systems and parts with different levels of coverage and higher costs for more extensive coverage of prices can vary widely.
For paying you will generally have two options: you can either pay upfront to the dealer by writing a check for the, or the cost of the warranty you can include in your financing for the car’s loan. Since interest charges will be included, you actually end up paying more in the end.
What is not covered in the Extended Warranty Insurance Policy?
Here are the following expenses that are excluded under motor extended warranty insurance-
- Any accidental damage
- Normal wear & tear
- Cosmetic damage
- Diagnostic costs
- Consumable items
- Regular servicing
- As a result of fire and theft repair or replacement is necessary
- Consequential loss
- Damage of transportation / installation / delivery
- In the insured product damage due to software incorporated
Are extended warranties worth it?
Motor extended warranties are most valuable under exceptional circumstances. If you keep your cars until the steering wheel comes off in your hands, an extended warranty offers cover costs after the first few years, when your manufacturer’s warranty expires. Make sure that some warranties factor in depreciation If your car is older you may not get as good a return on your investment.
An extended warranty may be an unnecessary expense for most people. For the first few years, arely New cars require anything other than general maintenance servicing of ownership. In every three years or more, if your car likes clockwork, an extended warranty is likely to be a wasted additional expense.
A better option is that you can save in your savings account which is used only in the events of a significant repair. Then in hand, you’ll have the money, and can be earning positive interest on it until you need it.
Extended car warranties cover your car repairs after your manufacturer’s warranty expires. It can be costly. Unless for many years when you keep your car, extended warranties may allow limited benefit. It is a good idea to save your money and have spent on an extended warranty to put towards a repair for most car owners.