White Paper - Researching and Selecting an Automobile Extended Warranty Provider (Part 3)

The Coverage…

There are many different levels of coverage available.

Exclusionary Warranties – These are the highest level of coverage one can obtain and are often referred to as bumper-to-bumper warranties. Like a new car warranty, they will cover ALL parts of your vehicle except a small list of exclusions. The exclusions are typically for routine maintenance (oil changes, tune-ups), cosmetic items (seat fabric, carpeting, body molding), and consumable items (battery, brake pads, wiper blades). Read the exclusions carefully as they can differ widely among warranty contracts. Some companies will exclude commonly repaired items like stereo systems, oxygen sensors and more.

Named Component Warranties – These types of coverages will provide a list of the parts covered and are available in many different levels. In order to do a proper comparison, you must read the detailed list and not just the system categories.  

Roadside Assistance – Better extended warranties will provide complete roadside assistance membership with each contract. Membership will provide you with 24x7 access to a toll free number to call for help for such things as towing, flat tire assistance, lost key and lockout service, battery jump start, fluid delivery and more. These plans have no deductible and are not tied to covered repairs only.

Lesser warranties provide limited towing benefits (often $50 or $75) that are only available to you for a covered repair. These will require that you arrange for towing on your own and seek reimbursement for the fees you pay.