When it comes to personal finance and insurance, there seem to be plenty of concepts and terms that were created to confuse. Car warranties are one such concept, though they needn't be such a mystery.
You may well have seen car warranties being advertised on television, online or in your newspaper. There are probably more car warranty options available to car owners than there have ever been before, but what is car warranty all about?
If you've bought a new car within the past few years, then you may well have an idea of the general concept behind car warranties.
When you buy a new car, it typically comes with a manufacturer's warranty. What the manufacturer's warranty should mean for you is that, if your vehicle has some sort of mechanical problems during the term of the warranty, the manufacturer should pay for the necessary work to be carried out on your car.
This probably seems fairly obvious. After all, if the car breaks down so soon after purchasing it, it seems fair that the manufacturer should pay for any repairs.
The manufacturer's warranty will often last for around 12 months from the date at which your purchase the vehicle. Warranties can vary, so you'll need to check your warranty policy to see when it expires.
Once the manufacturer's warranty expires, you are on your own. This is where extended warranties come in.
There are numerous companies online that will allow you to extend the warranty on your vehicle. Each of these extended warranties will tend to work differently, but the basic idea is that they should cover your vehicle, in case of any further faults.
When you come to buy extended warranty, you need to make sure that you shop around. That's because prices and the extent of the warranty cover can vary considerably.
Car warranty needn't be complicated - hopefully you are now considerably clearer on what it entails.
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