Extended car warranty for student drivers
 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.
Many American students drive cars to school. It's not just a convenient way to catch classes in separate buildings that are miles apart, but may also be a cheaper alternative for students who don't live in university dormitories. After all, even though living with mom and dad means driving more than an hour a day, this arrangement can surely help defray the costs of college education.
This is true during the good times. But when the going gets tough, and
the car breaks down in the midst of rising bills and ballooning
student loans, there's no doubt that an extended auto warranty could
have saved the family budget from severe strain.
Parents know that young drivers tend to be more reckless. They love the thrill of driving at a lightning speed. And accidents aside, such driving behavior exacts a heavy toll on the car that may not be covered by the manufacturer's original warranty.
Paying at least a thousand dollars for an extended warranty is a
significant expense for students. But there's no better way to prepare for the future than insuring future risks today.
Parents can strike a deal with their teenagers to help them pay for the premium. A part-time job can surely help, a small deduction in the monthly allowance, or good grades in exchange for insurance premium. On top of teaching teenagers how to handle personal finances, parents can have peace of mind knowing that they don't need to shell-out extra cash to cover any car fixes in the future.
4/22/2010 2:36:46 PM
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