There are several levels of auto warranty coverage are available which are commonly found: -
Powertrain Auto Warranty
This auto warranty includes engine, transmission, and drive axles. Actual auto warranty coverage will vary from company to company. This is usually the cheapest auto warranty but most important as it is the most costly to repair.
Powertrain Plus Auto Warranty
This includes all the warranty detailed above plus between 10-15 other additional components like: steering, electrical, air con, cooling & fuel systems.
Full Auto Warranty Coverage
This is the top auto warranty coverage where all the covered components are listed in detail.
This is differs from bumper to bumper coverage (where the covered components are not named listed). Full auto warranty covers all the components include in 'Powertrain Plus' as well as items such as: Electrical & Customer Convenience packages. These items are sophisticated and complex such as remote keyless entry, cruise control, wiper motors etc. Also, all of the components covered in the full auto warranty coverage may have more individual items listed than in the Powertrain Plus. However don't just assume that as your auto warranty says the air-con system is covered that all of the various parts in the air-con system are actually covered.
Bumper to Bumper Auto Warranty
This type of auto warranty is also known as Factory Cover, which refers to the type of coverage provided on a brand new vehicle. This is the most comprehensive auto warranty cover available. This type auto warranty covers everything except items specifically excluded! A list of excluded items is always provided. You must not assume that just because it is called Bumper to Bumper that it is true "Exclusionary" coverage. A true Bumper to Bumper, "Exclusionary" auto warranty is normally worded as: "repairs on all components /itemsand parts are covered with the exception of those items listed in the exclusion section of this auto warranty". If you want to cover everything, then exclusionary coverage is for you (often only available for lower mileage vehicles).
The amount of auto warranty available decreases as the mileage on your vehicle increases.
Terms and Conditions
All contracts have a section found in the small print called "Terms and Conditions". This section provides all the definitions of the contract and details of the conditions of the contract. It is important that you read and understand this section so that you don't have any misunderstanding as to what you are buying. Most companies have almost identical exclusions.
Examples of Excluded items: -
• Most maintenance items are not covered.
• Failures caused by abuse or lack of normal maintenance.
• Failures where the true mileage can not be determined.
• Seized / damaged engines caused by poor maintenance.
Important Auto Warranty Definitions
• 'Failure' is deemed to have occurred when a warrantied part ceases to perform the function for which it was designed. This may be refered to as failures due to "normal wear and tear". Some contracts include normal wear & tear, and some don't.
• Replacement parts may be new, remanufactured, or replacement with "like kind and quality". What this really means is that if you have a high mileage vehicle the claims department has the authority to replace a failed part with even a used part. This is most likely only to occur when replacing an entire engine, however remanufactured parts are routinely used for replacement. In fact, remanufactured parts are often the only parts available.
• Limits of Liability (LoL): Maximum limit of liability per occurrence shall be the actual cash value of the vehicle at the time of the repair. Aggregate limit of liability for all claims under the auto warranty shall normally not exceed $75k or the actual retail price of the vehicle. That said auto warranties vary widely in their limits of liability.
• Renewal: Some companies offer continuous auto warranty renewal (at increasing costs in relation to mileage) but some offer no renewal.
• Auto Warranty Maintenance requirements: Most companies have very strict maintenance requirements. You must maintain your vehicle according to the manufacturer's recommendations.
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