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Purchasing An Extended Warranty
by ABT staff
When considering the purchase of an extended warranty, you should first evaluate the standard factory warranty to determine if the length and degree of coverage meet your driving needs.
Extended warranties are designed to lengthen the standard warranty up to as much as six years. They are available with time and mileage variables that can be selected to meet your specific needs. Many of the extended warranties require you to pay a preset deductible amount every time the vehicle is repaired. The number of components covered vary. You should read the covered component list prior to purchasing the warranty, as some important components may be excluded. Any service or part not listed in the contract is not covered, even if the salesperson says it is.
Extended warranties are supplemental agreements between you and the dealer, the manufacturer or the independent insurance company. Whenever possible, purchase the extended warranty issued by the vehicle manufacturer. This guarantees you service on a nationwide dealer basis. Many independent contracts are honored only at the dealership that sold them.
Certain restrictions apply to all policies, so read the contract carefully. Check the deductible amounts, the covered components, the length of the contract, any towing and rental reimbursement, transferability to subsequent owners, any exclusions and the repair authorization requirements. Extended warranties do not cover the expense of routine maintenance or damage covered by accident or abuse.
Source: ABT
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