A car warranty is a guarantee on the part of the manufacturer or retailer, to bear the responsibility of the car repairs required within a stipulated period, in lieu of a nominal fee. It is very important to purchase a car warranty policy, considering that problems don't come with an intimation. A car breakdown during the onset of your financial crisis can land you in deep trouble.
If your car is covered by auto warranty, you can be relived about problems, like car breakdown or wear and tear of components. But then, there are times when the warranty itself becomes a problem. Such problems are mainly caused due to the lack of knowledge about the policy we choose.
Major Warranty-Related Problems
Very often people are found complaining about their car warranty policies. The problems with warranty are more often attributed to haste in policy purchase. When we buy a car, we purchase the warranty from the same retailer, mostly because it is the first policy offered to us. We are so enthusiastic to own the car that we tend to overlook the hidden charges in the policy.
It is often noticed that retailer's policies are relatively costlier than policies offered by companies that exclusively deal in auto insurance. One should do thorough research, taking into consideration his wants, budget, and what the policy has to offer, before narrowing down on the single policy to be purchased.
Another common problem with car warranty is that of inadequate cover. Though all the polices sound almost similar, there is a lot of difference between two policies. Not all policies cover all the parts of your vehicle. Some policies only cover car breakdown, while some only deal with wear and tear of car parts. In such a situation, research plays an important part. It is very important to research and find a policy which suits you. If you use the car extensively, it will experience a lot of wear and tear. In such circumstances, you can't wait for the car to breakdown just because you have a warranty policy which only covers car breakdowns.
Extended car warranties are becoming more and more popular today, but that doesn't mean they are beneficial for all owners, or all cars for that matter. These policies cover the period which starts after the manufacturer's warranty period gets over. In most of the cases, the extended warranty is backed by some independent insurance agency. It is important to know about the agency's background before purchasing a warranty policy from them.
Warranty policy being declared invalid is one of the most frustrating problems encountered by the owners. Most often, the warranty claim is rejected owing to owner's failure in adhering to the terms mentioned in the policy. At times, people complain about having had to pay a large excess when paying the claim. One has to understand that the excess level is set by the company. It may differ from part to part. An individual should keep himself updated with such information.
Most of these problems occur as people don't read the fine print, which covers all the clauses and reservations of the policy. It is of utmost importance to understand the policy before signing on the dotted line; that doesn't just save your time and money, but also saves you trouble in the future.