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Wednesday, August 25, 2010

When to Choose an Extended Warranty

Car manufacturer provides the original warranty for the new cars. For a certain period of time, original warranty is sufficient for the manufacturers. This will cover most of the components during that period. Generally the warranty period will be of three years for the most common company. But for some of the companies, it will extend till seven years or so. One can even define the period of coverage in terms of mileage.


Once the period of coverage expires, then in those cases, the company will not provide the expenses for replacement and labor costs. One has to give from their pocket regarding the repairs. Thus, the extended warranty will come under picture. This warranty coverage will help the person in paying the repair costs.


The contract of service between the car owner and the warranty company is known as the extended warranty. This service is also for some specific period of time. One can compare the extended warranty coverage with the health insurance.


Unexpected repair costs are provided by the extended warranty service. The manufacturers will look the condition of the car and will give the extended warranty. Every car will not be provided with the extended warranty service.


If you want to use the car for many years even after completing the warranty coverage, then in those cases, the extended warranty coverage is worthful. One need not buy the extended warranty coverage for the new car. Used cars mostly require the extended warranty coverage.


So as to maintain the repairs of the cars, this will be useful. If a person can handle the unexpected repairs, then those cases there is no need of extended warranty coverage. But, most of the people want only the coverage to pay for the repairs.

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