Car accidents can be stressful, but knowing what to do next can make things easier. Stay calm and proceed cautiously. Follow our step-by-step guide if you&#8217;ve been in an accident for a smoother process.
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1. Check your safety
After a car accident, safety should be your top concern. Check for injuries and call for medical help if needed. Remember to ensure the safety of children, seniors, and pets, and never leave them unattended or in a hot car after a crash.
For minor collisions without injuries, it&#8217;s important to make a note of the incident to prevent false injury claims from the other party later on.
2. Notify the respective authorities
In certain states, it&#8217;s mandatory to notify the police after an accident. Dial 911 and provide them with the precise location of the incident. Stay on the line with the dispatcher until instructed otherwise.
The police will create an accident report. Inform them if the other driver leaves, if they appear intoxicated or impaired, or if you suspect foul play in causing the accident. If the police are unable to come to the accident site, head to the nearest police station to file a report yourself. You&#8217;ll need this report copy for your insurance claim. Remember, in many states, you have about 72 hours to file the report.
3. Stay at the accident scene
Stay at the accident scene and move your vehicle to a safe spot nearby as soon as possible. Use hazard lights and road flares to warn other drivers. If your car can&#8217;t be moved, relocate yourself and passengers to a sidewalk or another safe area.
4. Exchange needed information
It&#8217;s important to exchange information with all parties involved in the accident if there&#8217;s any damage or injury. Make sure to share your contact and insurance details with the other driver. Verify if they&#8217;re the registered owner of the vehicle; if not, obtain the owner&#8217;s contact information.
Details you must exchange after an accident:
<ul>
<li>Name</li>
<li>Contact details</li>
<li>Driver’s license and plate number</li>
<li>Name of Insurance company and most importantly policy number</li>
<li>Type and model of vehicle</li>
<li>Location of the accident</li>
</ul>
Did anyone else witness the accident? Request their names and phone numbers so you can contact them later if needed.
5. Cautiously talk to the other driver
Be cautious when interacting with the other driver as they might be upset, potentially endangering your safety. Conceal valuables to prevent theft. Stick to sharing factual information without assigning blame. Avoid discussing fault; let the insurance adjuster determine fault based on vehicle examination, witness accounts, photos, and the police report.
6. Record the accident scene
Capture as many details as possible about the accident. Use your phone to take voice notes and send them to yourself. Also, utilize your phone&#8217;s camera to capture photos and videos of the scene. Gather the following details about the accident:
<ul>
<li>The make, model, color, and license plate number of the vehicles involved.</li>
<li>Note the road conditions, including weather, street signs, and lighting.</li>
<li>Record the exact time and date of the accident.</li>
<li>Document any damages to the vehicles or surrounding property, including parked cars.</li>
</ul>
7. File an insurance claim
Contact your insurance company promptly after an accident. Avoid negotiating independently, as notifying your insurer protects you from future complications. Don&#8217;t worry about involving your insurance— they can guide you through options like liability waivers or coverage for underinsured parties, easing your concerns about deductibles and damages.
When you contact your insurance company, provide your policy number and the registration number of any vehicles in the accident. They&#8217;ll also need the other driver&#8217;s name, address, phone number, and insurance details to process your claim efficiently.
8. Visit a doctor
After a car accident, injuries might not be obvious right away. You might feel fine initially but experience pain or injuries later on. It&#8217;s important to see a doctor to rule out any hidden injuries. Impact to your head, spine, or internal organs could lead to long-term damage if not addressed promptly.
9. Repair your car
If your car suffered significant damage in the accident, you may require a tow truck to transport it to a repair facility. Check if your roadside assistance plan covers this service. Note down the towing company&#8217;s contact details.
Ensure your car is repaired by a trustworthy mechanic to maintain its safety. Car accidents can cause severe damage, and avoiding proper repairs can lead to lasting issues. Concerned about repair costs? Consider an extended warranty for easier management of necessary repairs.
10. File records of the accident carefully
Be sure to keep a record of all documents related to the accident. This includes the claim number, contact details of everyone involved, and receipts for car rentals and repairs. Keeping these records organized can help streamline the claims process and ensure accurate documentation.
Car accidents can happen unexpectedly, but being prepared can help you handle the situation better. Remember these tips if you&#8217;re ever in an accident, and always prioritize safe driving.

What You Must Do After Suffering A Car Accident?

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10 Best Car Warranties 2025

When purchasing a car, you may come across the term &#8220;extended car warranty.&#8221; Many buyers worry about covering the cost of repairs that may arise after buying a vehicle.
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Car repairs can drain your wallet. With different warranties promising protection, deciding on an extended warranty can be confusing. Should you buy from the dealer or elsewhere? Our guide clarifies the most common doubts about extended car warranties to help you make an informed decision without feeling exploited.
Myth 1# No need to buy an extended car warranty
It&#8217;s easy to assume your vehicle doesn&#8217;t need an extended warranty if it&#8217;s in good condition now. However, just like with health insurance, waiting until an issue arises means pre-existing conditions won&#8217;t be covered. Ensure your car&#8217;s protection by getting an extended warranty before problems occur. Don&#8217;t wait until it&#8217;s too late to safeguard your vehicle and avoid unexpected repair costs.
Myth 2# You can buy a car warranty only from a dealer
Only a registered dealer can offer an extended vehicle warranty, but there are national providers offering vehicle protection plans. What&#8217;s the distinction? A protection plan is often more budget-friendly and still offers many benefits of an extended warranty. It may include no-fee payment options and coverage for issues due to normal use. Compare plans from different providers to find the best fit for your needs and budget.
Myth 3# All car warranties are similar
It&#8217;s a common misunderstanding, but understanding the distinctions between warranty types is crucial. There are various plans available, so it&#8217;s important to research and determine the right warranty for your needs. Warranties differ in coverage, benefits, features, and price, so take the time to find the one that suits you best.
A more expensive warranty usually offers more coverage. Coverage can also vary depending on your state, car&#8217;s year, make, model, and mileage. Get a free quote to compare options wisely. Research the provider&#8217;s reputation to ensure you&#8217;re buying coverage from a trustworthy company.
Myth 4# Car warranty from a manufacturer is enough. No need for a double warranty
Indeed, a manufacturer’s warranty offers coverage for a brief period after purchasing your car. However, these limits based on time and mileage expire soon, and potential issues often surface after this warranty ends.
Getting an extended warranty before your car’s original warranty ends ensures better rates. Newer cars are easier and cheaper to insure under extended warranties. Older cars typically have higher rates. Researching an extended warranty early can provide lower rates, improved terms, and enhanced coverage.
Myth 5# Buying an extended warranty means you need not worry about your car
An extended warranty isn&#8217;t a substitute for responsible car ownership. It covers repair costs but doesn&#8217;t negate your responsibility to maintain your car as per the owner&#8217;s manual. Keep up with scheduled maintenance checks and save records and receipts for maintenance and repairs.
Regular maintenance is key to keeping your warranty valid and avoiding frequent trips to the repair shop. Neglecting your car could lead to denied claims if issues arise. Consistent upkeep ensures smooth operation and minimizes the need for repairs, saving you time and hassle.
Myth 6# You must buy an extended car warranty in order to qualify for a dealer finance
Buying an extended warranty doesn&#8217;t affect your chances of getting financing; it&#8217;s based on your credit history. Adding the warranty cost to your car loan means paying more interest. Check companies offering extended warranties with interest-free payment plans for better long-term savings.
Myth 7# Expect no expenses from your pocket after a car service
With an extended warranty, you may still need to cover some repair costs. Manufacturer extended plans usually require a deductible. These warranties often mandate servicing at the dealership using factory parts, which are higher quality but pricier.
Additional unexpected expenses may arise when calling an adjuster to confirm repair diagnoses, especially for costly repairs or extensive work exceeding $1000. This process can consume your time and money. You might also incur fees for bringing your vehicle back to the shop and paying for diagnostic and labor costs.
Myth 8# Extended car warranty provides same coverage as the manufacturer warranty
Extended warranties, also known as service contracts, don&#8217;t cover maintenance like tune-ups, coolant, oil changes, and wear items such as tires and brake pads. They complement manufacturer warranties by covering mechanical and electrical issues not covered by the original warranty. Review your contract details and ask questions to ensure you&#8217;re getting the coverage you need.
Myth 9# Mechanical breakdown and Car wear-and-tear warranties are same
A mechanical breakdown refers to a defect in a car part or workmanship from the manufacturer, making the part dysfunctional. If your warranty only covers defects and malfunctions, consider a wear and tear breakdown warranty too. Most breakdowns occur due to gradual wear and tear, not manufacturing faults, especially as your vehicle ages. Don&#8217;t assume your repair agreement covers wear-related repairs; opt for a service contract that includes wear and tear claims.
Myth 10# Extended warranties are not important, but a waste of money
Many drivers skip extended warranties due to cost concerns. They may view warranty offers skeptically, worrying about being exploited or buying unnecessary coverage. However, major car repairs can be extremely expensive, making a warranty valuable if your car needs significant repairs. It&#8217;s worth considering an extended warranty to avoid hefty repair bills in the future.
Consider that certain extended warranties offer valuable benefits such as roadside assistance, flexible payment plans for repairs, rental car coverage, and the freedom to choose your repair shop. Some plans are reasonably priced and don&#8217;t require a deductible. Shop around to find a plan that offers great value for your money.
In essence, extended car warranties are like having health insurance or life insurance. You hope you never have to use them, but they provide peace of mind knowing you&#8217;re covered if something unexpected occurs.

Selective-focus-on-smiling-young-caucasian-woman-sitting-on-driver-seat-beside-happy-young-man-inside-luxury-car

10 Myths Surrounding Extended Car Warranties

Owning a True Auto extended warranty for used vehicles offers excellent protection from expensive repairs. However, there are additional steps you can take to avoid repairs, extend your vehicle&#8217;s lifespan, and possibly increase its value. Alongside having an extended warranty, regular maintenance is crucial for the vehicle&#8217;s longevity and keeping it away from the repair shop. Here are some steps you can follow to ensure your car, truck, or SUV performs at its best:
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<ul>
<li>Drive gently and avoid aggressive maneuvers such as rapid acceleration and sudden braking. This simple practice can help prolong the lifespan of essential components like brakes, suspension, tires, transmission, and engine.</li>
<li>Try to limit driving in heavy city traffic and short trips whenever you can. Doing so can help extend the lifespan of your brakes, transmission, and engine.</li>
<li>Make sure to wash and wax your vehicle regularly to keep its exterior and paint clean. This helps remove pollutants, grime, and road salt, which in turn prevents rust and corrosion from damaging metal parts.</li>
<li>Protect your vehicle&#8217;s interior by using seat covers and floor mats, and remember to condition leather seats regularly. Keeping your interior clean and well-maintained prevents wear and tear, ensuring that it stays in good condition for a longer period.</li>
<li>You can significantly extend the lifespan of your vehicle&#8217;s tires by ensuring they are always properly inflated and rotating them regularly. This simple maintenance routine can add thousands of miles to your tires before needing replacement.</li>
<li>Make sure to change your vehicle&#8217;s oil and filter based on the recommended maintenance schedule. This small but crucial step can add years and thousands of miles to your engine&#8217;s life, making it one of the most important maintenance tasks for your vehicle.</li>
<li>Make sure to replace your vehicle&#8217;s thermostat and change the engine&#8217;s coolant as per the maintenance schedule recommended for your vehicle. This simple step not only boosts your vehicle&#8217;s performance but also helps prevent overheating. It also extends the lifespan of your cooling system and engine, keeping your car running smoothly for longer.</li>
<li>Be sure to change your vehicle&#8217;s transmission fluid and filter according to the recommended service intervals. This helps keep your transmission in good condition and extends its lifespan, ensuring smooth and reliable performance from your vehicle.</li>
<li>Make sure to replace your vehicle&#8217;s air filter, drive belts, and spark plugs regularly. This not only improves your car&#8217;s gas mileage but also helps extend the lifespan of the exhaust system and engine. Keeping these components in good shape ensures smoother performance and efficiency for your vehicle.</li>
<li>Make sure to replace your vehicle&#8217;s water pump and timing belt according to the recommended maintenance schedule. This helps protect your engine&#8217;s internal parts, prevents overheating, and enhances engine performance. Keeping these components in good condition ensures your car runs smoothly and efficiently for longer.</li>
</ul>
Despite following a strict maintenance schedule, unexpected repairs can still occur. That&#8217;s why it&#8217;s important for car owners to consider having an extended warranty for used cars. At True Auto, we provide a range of coverage options tailored to your needs, helping you manage the cost of unforeseen repairs effectively. We&#8217;re here to find the right warranty plan that gives you peace of mind and financial security.

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Minimizing the Repairs of Your Used Vehicles

Purchasing a vehicle is a major decision that involves a substantial investment. To safeguard this investment, it&#8217;s crucial to consider buying an extended warranty. Here are the top five reasons why investing in an extended auto warranty for your vehicle is a wise choice:
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1. Protects your automobile for a longer time after the manufacturer warranty ends
According to IHS Automotive, the average duration of new vehicle ownership has increased to 6.5 years, up by nearly two years since 2006. Nowadays, people are holding onto their cars longer, often driving them well beyond 100,000 miles. Surprisingly, one out of every four cars on U.S. roads was made before the year 2000!
Although new cars typically come with factory warranties from dealerships, these warranties are limited in terms of miles or years of ownership. For example, GM offers a 36-month or 36,000-mile factory warranty. However, given that the average ownership duration is more than double 36 months, there&#8217;s a significant period when your car is left unprotected.
2. Car warranty pays after a major car repair
Car repairs can be quite costly, especially with modern vehicles that have sophisticated computer systems. For instance, fixing these systems alone can exceed $1,000. However, purchasing an extended auto warranty upfront can save you from bearing these unexpected expenses. In fact, the cost of just one major repair could be higher than what you paid for the entire warranty, resulting in significant savings over time.
3. Extended warranty covers perks that are not included in manufacturer warranties
AmeriChoice&#8217;s Route 66 extended warranty offers additional benefits like a rental car allowance and 24/7 emergency roadside assistance to its policyholders. These perks are not typically included in basic factory warranty plans. Renting an economy car can cost around $45 to $65 per day on average. This expense can accumulate rapidly depending on the duration of your car&#8217;s repair time at the garage.
4. Cost of warranty is less for new cars
Similar to life insurance, the price of an extended warranty goes up as your car gets older. Getting an extended warranty with a new car is cheaper than buying it later after the factory warranty expires. Opting for an extended warranty with a new car gives you better value since your car will likely need repairs as it ages.
5. Enhances resale value of car
If you choose to sell your car before the extended warranty expires, you can usually transfer the warranty to the new owner for a small fee. This adds extra reassurance for the buyer when purchasing a used car, potentially increasing the resale value for you as the seller.
<h3>Bottom line</h3>
Considering an extended auto warranty? It&#8217;s a smart move for those with a tight budget, seeking to safeguard their investment, and avoid unexpected high repair costs. If these reasons resonate with you, getting an extended warranty is a wise choice. Remember, similar to other insurance plans, there are various policies tailored to different needs and circumstances.

Young-hispanic-man-smiling-happy-driving-car.

Top 5 Reasons Why You Must Buy an Extended Car Warranty

One of the best things about purchasing a new car is the peace of mind that comes with knowing you won&#8217;t have to pay for repairs if something goes wrong with a part or due to poor workmanship. New cars come with warranties that cover repair costs during the initial years of ownership or throughout your lease period, sparing you from unexpected expenses.
You have the option to buy extended warranties for used cars, offered by car manufacturers and independent providers. Our guide will explain what car warranties cover, detail the specific coverage provided by different automakers, address common warranty questions, and provide insights into extended car warranty coverage.
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<h3>What do you mean by Car Warranty?</h3>
A car warranty is like an agreement between you and the company that made your car (or the coverage provider for an extended warranty). Basically, it promises to cover repair costs if something goes wrong due to a faulty part or poor workmanship in your vehicle or its parts.
New car warranties can be quite detailed, with lots of pages explaining what they cover and don&#8217;t, full of legal terms, exceptions, and conditions. While most new car warranties offer similar basic coverage, there can be slight variations. Extended warranties, on the other hand, can differ a lot in terms of coverage, payment responsibilities, service locations, and deductible amounts.
When you purchase a brand-new car, the manufacturer&#8217;s limited warranty is part of the package and shouldn&#8217;t require any extra payment. However, extended car warranties are additional services that come at an extra cost. These can be quite pricey, sometimes costing thousands of dollars, whether you get them from the dealership or other extended warranty providers.
An auto warranty ensures that any defects or issues with your vehicle&#8217;s parts are covered for repair. For example, if your power window, transmission, or infotainment system malfunctions due to manufacturing errors, you can bring it to the dealership for repair at no extra cost. New car warranties usually don&#8217;t require a deductible and cover both the faulty part and the labor needed for replacement or repair.
Car warranties have specific limits in terms of mileage and years. If, for instance, your warranty is valid for five years or 50,000 miles, it will end as soon as you reach whichever limit comes first. So, if your mileage hits 50,000 before five years or if five years pass before reaching 50,000 miles, your warranty will expire accordingly.
<h3>Car Warranty – What Does it Cover?</h3>
Car warranties usually come with a list of items they don&#8217;t cover, known as exclusions. These include wear and tear parts like brakes and wiper blades. Regular maintenance tasks such as oil changes, air filter replacements, and tune-ups are also not covered. Additionally, most warranty plans don&#8217;t cover add-ons or aftermarket equipment unless specifically backed by the factory at the time of purchase.
Warranty coverage doesn&#8217;t include damage from accidents or negligence. For crash repairs or issues like engine failure due to lack of maintenance, your car insurance company steps in, not the automaker. Parking your car outside during a hailstorm isn&#8217;t covered by warranty either; it falls under comprehensive coverage in your insurance policy (if you have it).
Automakers and warranty providers may reject claims for vehicles they deem mistreated. Racing a Honda Accord or using all-terrain tires on a Kia Soul can lead to denied claims. Heavy modifications, on-road or off-road, can also void warranty coverage. Towing beyond recommended limits may void specific warranties like transmission, engine, or brakes.
<h3>Difference Between a Car Warranty and a Recall</h3>
When there&#8217;s a safety issue due to a defect, the automaker recalls all affected models with no cost to owners or lessees, regardless of mileage or age. You&#8217;ll get a notice from the automaker or can check recalls on the National Highway Traffic Safety Administration (NHTSA) website.
If your car is recalled, the automaker will send you a notification. You can also check for recalls on the National Highway Traffic Safety Administration (NHTSA) website using their recall checker tool.
<h3>Various types of Car Warranties</h3>
When you buy a new car, it usually comes with various warranties that cover different aspects for specific periods. These warranties can vary depending on the car manufacturer. Some automakers also offer additional benefits like roadside assistance, towing services, or reimbursement for rental cars.
Comprehensive or a simple bumper-to-bumper Warranty
A bumper-to-bumper warranty, also known as a basic or comprehensive warranty, covers almost all of your vehicle&#8217;s systems. If anything from the air conditioning to the transmission malfunctions while the warranty is valid, the manufacturer will pay for the repairs at an authorized dealership.
These warranties typically last between three to five years or up to a certain mileage, depending on the automaker. You can find specific details about each manufacturer&#8217;s warranty length later in this guide.
Powertrain Warranty
A powertrain warranty specifically covers essential components that enable your vehicle to move, like the engine, transmission, axles, and differentials. However, it does not include non-powertrain parts such as power door locks, audio systems, or headlights.
Your powertrain warranty kicks in once your bumper-to-bumper warranty expires. For instance, if your car has a basic four-year or 50,000-mile warranty and a six-year or 70,000-mile powertrain warranty, the powertrain coverage takes over between 50,000 and 70,000 miles or from four to six years of ownership.
Many top-rated powertrain warranties for new cars offer coverage for up to 10 years or 100,000 miles.
Perforation and corrosion warranties
Rust and corrosion warranties are especially important in areas with heavy snowfall. These warranties protect your car from significant rust and corrosion damage. Automakers may have different criteria for what constitutes significant corrosion, and some may limit coverage to actual perforation of metal panels. It&#8217;s essential to understand the specific terms and conditions of these warranties based on your location and the type of damage your vehicle may face.
Emission system warranty
The government requires automakers to provide a special warranty for certain parts of your car&#8217;s emission-control system. This warranty covers repairs if your vehicle fails an emissions test within the first two years or 24,000 miles of driving. Some components must be covered for up to eight years or 80,000 miles.
Electric and hybrid car warranty
Hybrid, plug-in hybrid, and battery-electric vehicles have high-voltage batteries that are covered by a special warranty required by the government. This warranty typically lasts at least eight years to ensure the protection of these vehicles&#8217; batteries.
Many car manufacturers go beyond the government&#8217;s requirements and offer extended battery coverage. Brands like Mercedes-Benz, Kia, and Toyota, for instance, provide warranties for high-voltage batteries that last up to 10 years.
Tire warranty
The warranty for the tires on your new car is offered by the tire manufacturer, not the car company. It covers issues like faulty construction and early wear but doesn&#8217;t cover regular wear, road hazards, or problems caused by mechanical issues like misaligned wheels. Keep in mind that tire warranties are typically prorated, meaning you might not get a full refund if you need to make a claim.
Restraint system warranty
Certain car manufacturers provide additional coverage for the seat belts of their vehicles, extending beyond the standard bumper-to-bumper warranty. For instance, Subaru is known for offering seat belt coverage for the entire lifespan of the vehicle.
<h3>Car Warranty Coverage for Second Owners</h3>
In general, the remaining bumper-to-bumper warranty on a car can transfer from the original owner to subsequent ones when the car is sold. For instance, if you sell a three-year-old car with a five-year, 50,000-mile warranty and it has 30,000 miles on it, the new owner will still have two years or 20,000 miles of warranty coverage left.
Different automakers have varying policies regarding the transfer of powertrain warranty coverage to second owners. For instance, Hyundai and Kia don&#8217;t extend their excellent powertrain coverage to subsequent owners. It&#8217;s crucial to know the original sale date when buying a used car to understand how much warranty time remains. Simply checking the model year won&#8217;t give you this information, so be sure to ask about the warranty and check the vehicle&#8217;s sale records. This way, you can make an informed decision and understand the warranty coverage you&#8217;ll have if you decide to purchase the used vehicle.
<h3>Car warranty for Certified Pre-owned Cars</h3>
Certainly! When you buy a certified pre-owned (CPO) vehicle, you&#8217;ll typically receive warranty coverage from the original automaker. Keep in mind that CPO warranties can differ in length and terms, and there may be deductibles for certain repairs.
Always double-check that the car you&#8217;re interested in is &#8220;factory&#8221; certified to guarantee manufacturer-backed warranty protection. Some dealers may label cars as certified but offer a non-factory extended warranty instead.
Absolutely! Factory-certified used cars are exclusively available at authorized dealerships that sell that specific brand. For instance, you&#8217;ll only come across a factory-certified Toyota RAV4 at an authorized Toyota dealership. If you see a RAV4 labelled as &#8220;certified&#8221; at a Chevrolet dealership, it&#8217;s probably covered by a non-factory extended warranty.
While warranty coverage is a major perk of buying a certified pre-owned (CPO) car, there are other advantages to consider. Our CPO vehicles guide outlines the pros and cons of purchasing one, and our Best Certified Pre-Owned Program awards highlight the top CPO programs in the industry.

A Thorough Car Warranty Guide – Everything You Must Know

Purchasing a car is a significant investment, ranking second only to buying a home in terms of expenses for most Americans. The costs associated with owning and maintaining a vehicle are substantial, accounting for nearly 90% of the nation&#8217;s transportation spending, amounting to $1.1 trillion. According to the Institute for Transportation &amp; Development Policy, around 35% of households in the U.S. own three or more cars.
Just like you insure your valuable possessions, such as your home, it&#8217;s crucial to protect your vehicles too. Insurance safeguards you from unforeseen events, while a warranty provides peace of mind for unexpected and costly issues. There are two main types of warranties: the factory warranty that comes with a new car, and the extended warranty you can add to an older vehicle. Knowing the differences helps you decide if an extended car warranty is worth it.
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<h3>New Vehicle Warranty</h3>
When you buy a new or certified pre-owned car, it typically includes a manufacturer&#8217;s warranty. This warranty covers everything from mechanical issues to defects in the car&#8217;s structure. Some manufacturers even offer extra perks like roadside assistance, towing, and travel coverage if your car breaks down.
The factory warranty, also called a manufacturer&#8217;s warranty, is included in the price of the vehicle. It&#8217;s like a built-in protection plan. You can use this coverage for a set time, usually between two to five years, or a specific number of miles, whichever comes first. Keep in mind that the details of this warranty can vary depending on the automaker.
<h3>Extended Vehicle Warranty</h3>
An extended vehicle warranty, also called an auto service contract, is an additional policy you buy separately from your dealer, car manufacturer, or another provider. Usually, it kicks in after your new car warranty ends. Some people prefer to align their extended warranty with the manufacturer&#8217;s warranty, but be cautious not to double up on coverage or costs. Most extended warranties can be bought at various times during your vehicle&#8217;s life, although there may be restrictions like needing to purchase it before your original warranty ends, as is the case with Honda warranties.
It&#8217;s a fact that cars lose value as soon as they&#8217;re driven off the lot. This depreciation happens yearly due to wear and tear, aging, and exposure to the elements. According to experts, most cars lose 20% of their value in the first year and 60% within five years. However, some cars retain their value better. Considering this, the extra expense of an extended warranty may not be worth it, especially for an older car whose value has significantly dropped.
Whether an extended warranty is beneficial depends on your individual situation. Here&#8217;s what you should consider to make the right decision for yourself.
<h3>Read the Warranty carefully</h3>
When deciding whether an extended car warranty is a good choice for your vehicle, it&#8217;s essential to watch out for scams and extra charges related to warranties sold by dealerships. Some optional service contracts can cost a lot of money, and they might be complex or difficult to understand. Be cautious because some dealerships might try to sneak an extended warranty into your bill without your knowledge or agreement.
The Magnuson-Moss Warranty Act is a federal law that oversees warranties for consumer products. It focuses on warranties that are considered a crucial part of the purchase agreement, such as warranties included with new or certified pre-owned vehicles. This law mandates that written warranties must be detailed, easy to understand, clearly disclose all terms and conditions, and use specific language that consumers can easily grasp. For instance, whether a car warranty is labeled as &#8220;full&#8221; or &#8220;limited&#8221; is governed by this law.
The Magnuson-Moss Warranty Act covers factory warranties included in the purchase of a product, like a new car warranty. However, it doesn&#8217;t have the same rules for service contracts, such as extended car warranties. Service contracts are different and have broader provisions. They don&#8217;t have to be labeled as &#8220;full&#8221; or &#8220;limited&#8221; like warranties, and they don&#8217;t require specific disclosures. This can make it tricky for consumers to understand the differences between warranties and service contracts.
<h3>Cost of an Extended Car Warranty and what it includes</h3>
Extended car warranties are created to help cover the expenses of certain repairs, usually for major parts like the engine, transmission, and powertrain. They work differently from manufacturer warranties and often include a deductible that you must pay when getting repairs done. These warranties aim to provide financial protection for unexpected breakdowns and repairs beyond what the manufacturer&#8217;s warranty covers.
Extended warranties are personalized for each driver based on factors like how long you want coverage, the deductible you choose, your vehicle&#8217;s model, mileage, and age. Plans with lower deductibles typically cost more. Luxury cars can be more expensive to repair, so their warranties may cost more. Manufacturers set limits on how long warranties can last. Prices can also vary based on location and who you buy the warranty from.
An extended warranty for different car brands like Volkswagen, Mercedes-Benz, and Honda can vary widely in cost. For instance, a Volkswagen warranty may range from $1,500 to $3,500, depending on factors like the specific vehicle, terms of coverage, and duration (up to 10 years or 150,000 miles). On the other hand, a Mercedes-Benz warranty could cost between $2,280 to $4,030 for basic models and up to $8,300 for higher-tier models. Honda&#8217;s extended warranty plans typically range from $800 to $2,500.
Extended warranties offer more than just coverage for parts and labor. They often include additional benefits like roadside assistance, towing services, rental car coverage, and reimbursement for trip interruptions if you&#8217;re far from home. However, keep in mind that some plans may require you to pay for fluids and oils during a repair, even if the labor is covered. Additionally, consider whether the warranty is transferable and if there are any associated fees. For example, BMW warranties are transferable at no cost, while Dodge may charge a $50 fee for transfer.
It&#8217;s important to check how the extended warranty handles payments. Some may require you to pay upfront and then seek reimbursement, while others directly pay the repair shop or service provider. Keep in mind that there might be a waiting period before you can make claims, and there could be limits on reimbursements. Also, certain warranties may mandate repairs be done at specific auto facilities to qualify for coverage.
<h3>What is not included in your Extended Car Warranty?</h3>
An extended warranty does not cover general wear and tear or routine maintenance like oil changes, fluid top-ups, tire rotations, and wiper replacements. These maintenance costs remain the responsibility of the car owner even with an extended warranty in place.
It&#8217;s crucial to stick to your car&#8217;s maintenance schedule to keep your extended warranty valid. Skipping oil changes or making unauthorized modifications can void your warranty. Additionally, damages from natural disasters such as wildfires, blizzards, floods, earthquakes, or hailstorms might not be covered. Always follow the manufacturer&#8217;s guidelines to ensure your warranty stays intact and covers potential repairs.
If you use your vehicle for business like ridesharing or delivery, your warranty plan may differ. Inform your warranty provider about your vehicle&#8217;s commercial use to ensure you have the right coverage for your income-generating activities.
<h3>Extended Car Warranties for used/ Pre-owned cars</h3>
Extended warranties can be obtained for certified pre-owned (CPO) and used cars, but they are different from the warranties offered for new vehicles.
A certified pre-owned (CPO) vehicle typically has low mileage, a clean accident history, and meets both manufacturer and dealership standards through a thorough inspection. Along with the peace of mind that comes with a CPO vehicle, you can also get approved for the manufacturer&#8217;s original or extended warranty coverage.
Dealerships offer non-CPO used cars as well. It&#8217;s essential to verify if a certified used vehicle meets both the dealer&#8217;s and manufacturer&#8217;s inspection criteria. Some used cars, especially newer ones with lower mileage, may still qualify for the manufacturer&#8217;s warranty. If not, extended warranty service contracts for used cars are available through dealerships and third parties, offering a lower-cost alternative to CPO cars, although with a reduced range of benefits.
In general, if you&#8217;re purchasing a used car and considering an extended warranty, it&#8217;s important to have a thorough inspection done to assess its condition. Remember that if the dealer or the third-party provider goes out of business, the warranty becomes void, so it&#8217;s crucial to choose reputable organizations to work with.
<h3>Extended Car Warranty – Is It a Good Investment?</h3>
Research indicates that while many car owners appreciate warranties, fewer choose extended warranties. If you&#8217;re buying a used car privately to save on upfront costs or interest, an extended warranty might not be a priority. Some used cars also may not qualify. Additionally, if you prefer DIY maintenance or vehicle modifications, an extended warranty may not suit your needs.
CPO-car buyers often appreciate the peace of mind that comes with a vehicle that has undergone thorough inspections, reducing the risk of unexpected repairs. While buying from a dealer may cost more, the added assurance is valuable. Opting for an extended warranty with a CPO car can be a smart choice, provided you understand the terms upfront.
Some car owners prefer relying on the factory warranty and keeping a savings fund for unexpected expenses. This approach ensures money is available if needed, but it&#8217;s challenging to predict the exact costs of unforeseen incidents like breakdowns or tows. It&#8217;s particularly important for those who travel extensively or live in remote areas to consider the potential costs involved.
An extended warranty is often beneficial when it begins right after your original manufacturer&#8217;s warranty ends, regardless of whether your car is new or used. It&#8217;s crucial to carefully review the terms and conditions of the extended warranty and clarify any doubts or questions before making a decision.

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