When Something Broken Isn’t Broken
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.
Anthony Silvio of Denver, Colorado, was thrilled to drive away in his gently-used 2005 Jeep Grand Cherokee, with only 48,000 miles. For peace of mind, he purchased the extended car warranty from his dealer. But only 5 months later, his power window was getting stuck going up and down. Anthony did not worry, though, because his car warranty listed power windows as a covered part.
Anthony Silvio of Denver, Colorado, was thrilled to drive away in his gently-used 2005 Jeep Grand Cherokee, with only 48,000 miles. For peace of mind, he purchased the extended car warranty from his dealer. But only 5 months later, his power window was getting stuck going up and down. Anthony did not worry, though, because his car warranty listed power windows as covered parts.
When Silvio's mechanic called in the claim, though, it was denied. "The auto warranty place said that the window motor wasn't broken, just worn. I told them the window was always getting stuck, of course it's broken. But they just said that, nope, it has to totally stop working before they would pay for it. I couldn't believe it," explains Silvio.
Only after extensive research did Silvio realize what happened: His extended warranty did not include "wear and tear coverage". Without that, a part or component has to completely fail in order to be covered. Warranties with wear and tear coverage would have fixed the window, or any covered part that is not performing as designed by the manufacturer.
Brokers such as AA Auto Protection represent multiple car warranty administrators, and have a range of plans available, practically all with wear and tear coverage. Anthony Silvio said that he learned his lesson and the distinction, but "wishes that class wasn't so expensive".
7/11/2010 12:05:14 PM
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