Before purchasing an automobile extended warranty for your vehicle, it’s important that you first understand what this means. Whenever a driver purchases a new vehicle, that vehicle comes with a “manufacturer’s warranty”. This is an agreement to pay for any repairs that arise from issues created during the manufacturing process of that new vehicle. Once this warranty expires, a driver may then purchase an automobile extended warranty.

Can automobile extended warranties be purchased for used cars?

Yes, however, it will not be designated as an extended “warranty”. This is because the vehicle is not new and therefore did not come directly from the manufacturer. The entity that sold the driver the vehicle is not permitted to call their coverage a warranty, so what they provide will often be named a “vehicle service contract”.

So how does a driver take advantage of an automobile warranty?

In order to use their extended automobile coverage, a driver must first complete their waiting period and pay a premium. Once this is finished, eligibility to make a claim is verified. After this process is complete, a driver should select a certified repair facility for their vehicle (almost all locations are accepted).

Next, the mechanic of the driver’s choice should run a diagnostic test on the vehicle to determine any issues and will communicate this to the warranty provider. The driver will then present their coverage membership card to the repair facility and repairs will begin. Coverage policies will often require a deductible to be paid once the repairs are complete. Be wary of warranty companies that require payment before repairs are completed, as this often turns into a reimbursement situation that can be quite the headache for the policy holder.

Finally, retrieve your repaired vehicle! As a side note, extended auto warranties will pay for repairs in total that are covered. This includes parts, labor, and all associated taxes.