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How to effectively use an extended warranty

Before buying a vehicle, it is always safe to get a full coverage warranty on your vehicle for safety and insurance. Most drivers look at how to get the best deal out of your vehicle at an economical price. It is always good to secure your vehicle with the best deal possible because that gives a better assurance about after-sale services, accidental coverage, sudden maintenance, etc.

Car dealers usually give the customers a chance to apply for full coverage through them; you even have auto loans and agencies working on the same. Before that, you need to know the inside stories of an extended warranty service:

Average cost of an extended warranty
Warranty purchases from agencies are always priced higher than getting them directly from a car dealership. There are stricter rules and policies involved when you purchase a warranty from dealers as opposed to a direct consumer aftermarket warranty service. The main motive behind an extended service warranty is to get a trouble-free service and extend the lifetime value of the car.
Technology advancement fixes
Minor repairs these days turn out to be a big loss for customers when it comes to technological shifts. Be it your LCD display repair, the music system, or the GPS system, nearly a fortune can be taken in if the warranty is not taken on extended features initially itself. These repairs are exorbitant and complex, and fixing these issues takes your a huge toll.
Level of coverage
An extended auto warranty has a validity of two to five years, which is equal to a lifetime value of a car. Some of these include mileage for two years up to 24,000 miles, sometimes even more. The three levels of coverage: powertrain, powertrain plus, and bumper to bumper. Powertrain, which is the cheapest, covers the essential parts that generate power only. Powertrain plus, which is moderately priced, adds a few components from powertrain coverage. Bumper to bumper, which is the most expensive coverage, covers almost every part and component, and this would essentially be necessary.
Assurance
Always be assured if your warranty covers the claims to be paid to the service centers. Understand, what the claims you can make are and the reimbursements. Repairs should be allowed in your choice of the service center. Cancellation policies on the extended warranty and how the pro-rated funds work. Check if the policy is transferable once you decide to sell your car.
Price of warranty
The plans start at around $1000 for a two-year plan and go up to around $3000 for a five-year plan for the least expensive warranty. Prices depend on models, years of use, and condition of the car. There are plans with deductibles from $50 to $250, and these plans are available at high rates. If you thought of getting an extended warranty on repairing the expensive parts, then you can cancel out on the deductibles as well.

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