What exactly is extended car warranty insurance?

All good things come to an end, so also the statutory warranty of cars offered by manufacturers.  After having enjoyed complete peace of mind during the warranty period, car owners realise its importance for the upkeep of vehicles so as to maintain it in perfect condition. They get used to the service support of the manufacturers so much that there comes a time when the warranty expires and they desperately to hang on to similar support. Buying extended car warranty insurance helps to maintain the continuity of benefits that had been enjoyed during the statutory warranty period, although the type of coverage is not as exhaustive as the earlier warranty. Nevertheless, it covers a lot of ground that makes the car ride more enjoyable.

Toy car with a stethoscope on top of stacks of coins

                                             Toy car with a stethoscope on top of stacks of coins

Unpredictable repairing costs

Car repairs have always been a concern for car ownersfor all car makes for the reason that neither the frequency of its occurrences can be predicted nor it can be estimated how much would be the cost of repairs.  It is said that since repairs and maintenance costs from a major chunk of running expenses of cars, leaving aside the cost of fuel, it is always better to have a budget for it that can be monitored and controlled. But with complete uncertainty about repairs and its costs, this is never possible. To help car owners with a meaningful solution to the problem, companies offer extended car warranty.

Overcoming uncertainties

You may have to spend thousands of pounds on car repairs or might be lucky enough to escape by spending a few hundred.  To mitigate the risks of uncertainty, it is advisable to buy extended car warranty insurance that comes into force as soon as the statutory warranty of manufacturers comes to an end. You take ample coverage through the warranty for all kinds of repairs by just paying a fixed sum of money. The warranty provider takes care of all repairs against the warranty insurance provided it is covered in the policy. You need not pay anything from your pocket. This is a unique way to restrict your liability towards car repairs.

The service providers

There are several service providers that offer car repair services against extended warranty.  The auto warranty insurance companies as they are called, service all car makes like Skoda, BMW, Audi, Honda etc. But you have to be careful in selecting the genuine and reliable ones as there are scamsters who have given a bad name to the industry.

Level of coverage

Extended car warranty insurance packages are tailor made to suit the customer’s requirement and the cost depends on the extent of coverage that is sought.  The service history of the vehicle can be used as an indicator to determine the level of coverage that would be adequate with respect to the cost. How well the package is selected would justify the cost that is paid for it.

But at the end, pay attention to the terms and conditions of the warranty so that there are no hidden inhibitors that can undermine the expected benefits of extended car warranty.

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