What’s an Extended Vehicle Warranty?

When purchasing a new vehicle, it often comes with a warranty, providing coverage for any potential breakdowns or malfunctions within a specific period. Extended auto warranties are designed to extend this coverage, offering peace of mind to customers for a longer duration.

However, not all extended auto warranty plans provide comprehensive coverage. Some plans only cover catastrophic failures or specific systems. To make an informed decision, it is crucial to be knowledgeable about extended auto warranties and reputable warranty companies. Here are a few key considerations:

1. Who takes care of the claims?

Many online businesses simply sell extended car warranty plans from other companies. However, companies like Clearlease, which sell and administer their own plans, are better equipped to offer reliable service and support.

2. Is it an exclusionary plan?

Manufacturer warranties are called exclusionary plans because it is more efficient to mention what’s not covered rather than listing every covered item. Such plans provide maximum coverage. On the other hand, plans that only list covered items may not offer comprehensive coverage and might be a supplement or partial plans. Clearlease offers exclusionary extended auto warranty plans.

3. Ask about parts, labor, and other expenses.

Do not assume that an extended car warranty plan covers parts and labor costs. You could end up paying for the time spent by mechanics on repairs. Considering the high hourly rates of $70 to $100 or more, these costs can quickly accumulate. Additionally, think about other expenses you might incur if your vehicle is in the shop for an extended period, such as costly car rental fees unless covered by your warranty.

Know Who You’re Working With

When purchasing an extended vehicle warranty plan, you enter into a contract with an administrator. It is essential to ensure that the administrator will fulfill their end of the deal, especially since you will be paying for the plan. Consider the financial strength of the company. Can they afford to pay your claim? Look into their track record of customer service. Are they properly licensed and registered to conduct business in your province?

How will the company handle claims?

An extended auto warranty plan that limits repair options or requires you to pay upfront and then seek reimbursement does not provide peace of mind. Make sure you understand the process of utilizing your extended auto warranty plan. Nationwide coverage, the ability to choose your preferred repair facility, and direct payment to repair facilities are all valuable options offered by Clearlease’s plans.

Dollars and Sense

When it comes to extended vehicle warranties, the old adage of “you get what you pay for” holds true. Look beyond the sticker price and consider what you are actually getting for your money. Take into account the potential out-of-pocket costs that may accompany a “bargain basement” plan.

By staying informed and shopping smart, you can make an educated decision about extended vehicle warranties. Choose Clearlease Financial for reliable coverage, reputable service, and valuable benefits that provide genuine peace of mind.

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