An auto warranty is a warranty issued to a vehicle that lasts for more than one year. An extended auto warranty, sometimes known as an extended service plan, an extended service contract, or an extended service agreement, is usually a contractual warranty offered to customers as well as the standard warranty on new vehicles. Sometimes, the auto warranty will be provided by the dealer, the authorized warranty provider, or the manufacturer. In some cases, Ford extended warranty plans can be purchased directly from a warranty firm.
Auto warranties are a good way to protect yourself against rising costs of repairs. For most people, a car warranty is considered part of the bargain when they purchase a brand-new automobile. It is almost a requirement, since many dealers insist on you purchasing an auto warranty when you take their test drives. Although buying a car warranty is a good idea for most consumers, it is not advisable for someone who is looking to buy an automobile used for recreational purposes only. Extended warranties do not usually cover repairs to these cars, but instead cover basic replacement at the very least.
If your vehicle breaks down and you need a new car warranty, you have three years from the date of purchase to file a claim. This means that you should be able to get repairs or replacements for a total of three years from the date of purchase. Under the standard three years from the date of purchase rule, an automobile owner can be covered for a total of four years from the date of the purchase. This means that you have coverage for a total of five years from the date of purchase for most policies. The car must be sold by its owner, and must be owned for at least three years.
Most extended car warranties will also cover the cost of repair or replacement of parts. It is usually very easy to understand how much coverage is actually received, simply because the value of your auto warranty will be in direct proportion to the worth of your car. This means that you can very easily calculate how much it will cost to replace a particular part. It is always good practice to add on a few thousand dollars for accident coverage as well.
To determine your actual auto warranty value, you simply divide the price of your vehicle by its gross weight. You will find that the actual value will be close to or just slightly higher than the retail price of your vehicle. If you are paying the lowest price, make sure you know exactly what the lowest price is!