What is a good car warranty?

5 min read

And Why Car Repair Insurance Is a Better Option

Buying a car can be a really exciting time, not only do you free yourself  to dream about how the new car makes you feel, but you also now have a renewed freedom to travel wherever you want, whenever you want. Though buying a car can be more complicated than most people think, and that’s because of all the decisions we have to make.  One of the most important decisions to make is the new car warranty and who will be servicing your car, right? 

 

So what is a car warranty?


When you get down to it car warranties that come with new cars are designed to protect the manufacturer and dealer reputations against part defects and assembly errors. Read one of their documents and you will see.  Unlike your auto insurance, a car warranty doesn’t cover damage that results from an accident, natural disaster, theft or much else for that matter.

Let’s take a look at the two most common types of car warranties:

  • Free Limited New Car Warranty 
  • Extended Warranty

Nowadays every new car comes with some form of a free limited factory warranty from the manufacturer that covers things like the engine, transmission and electronics. We’ve all heard them say “it’s bumper to bumper.”  More often than not these warranties are what can be described as “stated coverages”.  They state what is covered but not what is not covered. Which might be why car salesmen are trained to say “It’s bumper to bumper.”  Warranties appear to cover a lot but when you think about the more than 15,000 parts in a vehicle you quickly realize that warranties are cleverly covering the most reliable parts of the car. It is frustrating because no two limited manufacturer warranties are the same either. 

Often the manufacturer warranty is limited not only in time, mileage and what is covered but also may include a high deductible for some repairs. It doesn’t seem quite fair.  They built the car right?

And the thing is, these free limited manufacturer warranties are limited and only provide coverage in spirit.  It’s almost like they have figured out just how much time it takes for the thrill of the new car to wear off. It’s kinda like a Vegas magic show. 

This is one reason many people are now looking for alternative options to protect their wallets and ensure a better user experience.  Let’s face it, most of us are keeping cars longer than ever before and can’t afford the large repair bills that are bound to occur.  Cars break and if they didn’t we might keep them forever.

Extended car warranties on the other hand are most often offered at the time of purchase.  You know the story.  You are at the end of your rope, you’re hungry, you’ve waited to sign for your car and now a complete stranger is pressuring you into adding 3-5 different options they say will help protect your new car including an extended warranty.  But what is it?  The extended warranties dealers offer are usually just an extension of the free manufacturer warranty.  Confused yet?  These plans often just extend the same level of limited coverage that the manufacturer warranty provided or even less.  It’s kinda like a game show where you are asked to select plan number 1, 2 or 3.  Most poeple these days would be better off just promising to bring their car back for service than purchase this type of limited coverage that again is designed to provide just enough to sound good but at an inflated price that makes it less appealing.

So what is a good warranty?  Rather, what is the better option and…

What if car repairs could be as easy as: 

  • Dropping your car off at the dealer
  • Signing for the repairs
  • Leaving the bill for someone else to pay
  • And driving away and on with your day

It’s a simple idea to think about, but finding a vehicle service coverage that performs this way can be tricky. To make the smart decision, you need to understand what a good vehicle service plan covers and how to use it.

Exclusionary Coverage: 


The only coverage anyone should consider is a comprehensive plan that…

  • Saves time
  • Eliminates hassle
  • Pays for repairs so you don’t have to
  • Provides the most coverage
  • Exclusionary coverage that clearly states what it isn’t cover 
  • Includes things like roadside assistance, tow coverage, rental reimbursement and trip interruption coverage
  • Is risk free and can be cancelled or transferred easily
  • It must be affordable
  • Is accepted at any dealer or repair shop across the country
  • Is insurance-backed by a solid company

So here’s the deal: base your choice on your needs and expectations of your vehicle ownership experience. Ask yourself this question:  Do I plan to keep my car after the limited protection from the manufacturer has disappeared and do I see the value in a plan that performs better than past repair experiences?

Manufacturer and dealer warranties are complicated and sometimes don’t live up to their expectations. Moreover, the process can be super time-consuming (calls, credit checks, trips to the dealer…).
This is why we created Eligible, to save you time and eliminate the hassle of getting your car fixed. We know your time is valuable and the process of getting your vehicle covered should be simple too.

Get your FREE 30 second quote. It’s FREE, it’s simple and you can try before you buy.