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An extended car warranty can be a worthwhile investment when buying a car. However, it is safe to assume the extended warranty may not cover everything you think it does. For example, a warranty that covers parts that 'break' may not cover parts that fail due to wear and tear.
As a rule, standard maintenance items are not usually covered. This may include batteries, brake pads and shock absorbers which are the responsibility of the owner to maintain and replace when needed. Ignoring routine maintenance as prescribed by the manufacturer guidelines can also be grounds for voiding the warranty. Remember, you have already paid for the warranty so don't give the warranty provider an excuse to take your money and run.
We have looked at a few major automobile company's basic extended warranty plans, as well as a third party plan to compare what is not covered.
The three plans compared were Ford's 'Base Care' plan, GM's 'Basic Guard' coverage and a third party extended warranty for BMW automobiles offered by Nissan. Among these three plans, no coverage was provided for the following:
- Glass
- Upholstery
- Brake pads and rotors
- Tires
- Air bags
- Paint
- Batteries
- Air or water leaks
- Engine drive belts
- Convertible tops
- Light bulbs
- Exhaust systems
For many people, buying an automobile is the second costliest purchase they will make. It is understandable that you will want to protect your investment to the highest degree possible to avoid unexpected repairs down the road. While an extended warranty may help to alleviate this worry, it is recommended to carefully examine what is covered in an extended warranty plan. Any ambiguities should be promptly addressed as well as additional fees and deductibles. Fraudulent or misleading extended warranty programs are not unheard of so the safest course is buyer beware.
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