The “Hidden” Advantages of Auto Warranties
Sometimes called an "extended warranty", a service contract is a promise to perform (or pay for) certain repairs or services. Although technically not a “warranty” as defined by federal law, service contracts may be arranged at any time and always costs extra. Warranties, on the other hand, ONLY come with a new car and are included in the original price. Vehicle service contracts are popularly referred to as "extended auto warranties" or "extended warranties". Use of the term "extended warranty" or "warranty" on this site is intended to refer to vehicle service contracts and not manufacturer's warranties.
Everyone knows that a quality car warranty is essential to controlling auto repair costs. Taxes, parts, and labor will be picked up by the extended warranty administrator. The driver need only contribute a small deductible. But most people – even many warranty owners – do not realize that practically every auto warranty comes with other benefits, such as roadside assistance, towing, and trip interruption reimbursement.
People’s vehicles are sometimes not considerate enough to break down in the driveway. Sometimes it’s on an unfamiliar road, or late at night, or both. Roadside assistance will be useful in those cases, and many others. Most premium extended warranties, in addition to paying for your covered repair costs, include a complementary roadside assistance package. If a tire goes flat, a battery dies, your keys are locked in, help is as close as the number of you warranty administrator.
Towing is a lucrative business, because when a car cannot be moved on its own power, the only solution is a tow truck. Extended auto warranties typically will reimburse a specified portion of towing expenses. Oftentimes, there is no set limit to the distance that towing is authorized.
A vacation nightmare is being surprised and burdened by a broken down car on your way to your destination. A major repair may not be completed in a day. That means unexpected lodging, meals, and other expenses. Once again, your auto warranty can help. Most quality car warranties include trip interruption protection, which will reimburse the warranty-holder a certain portion of costs for the hotel and meals incurred from the break down.
Consumers who are protected by an extended auto warranty for their vehicle are grateful every time they pay only a tiny sum – if anything – of a major repair cost. That’s the obvious benefit. But warranty owners should also take advantage of the hidden benefits of the plans, so that they enjoy all the perks of their decision.
7/11/2010 9:26:50 PM
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