What is an Extended Car Warranty?
1 Answers
An extended car warranty is a type of insurance product. From the owner's perspective, it is similar to commercial insurance for vehicles. While commercial insurance provides coverage for non-normal use (such as accidents), an extended warranty covers normal use (maintenance and repairs). Additional Information: 1. Coverage of Extended Car Warranty: An extended car warranty partially overlaps with the original factory warranty but also differs in some aspects. The coverage of the original factory warranty is the same as the comprehensive coverage of an extended warranty. However, extended warranty providers typically offer three types of plans: a comprehensive warranty (similar to the factory warranty), a general warranty, and a powertrain warranty. 2. Effective Time of Extended Car Warranty: The extended warranty takes effect after the original factory warranty expires. For example, if a new car is purchased from a dealership along with an extended warranty and a quality issue arises after two years of use, both the original factory warranty and the extended warranty would apply. In this case, the original factory warranty (handled by the dealership) takes priority, providing free repairs. If a quality issue occurs during the original warranty period, even if the owner has purchased an extended warranty, the extended warranty provider will not handle the claim and will direct the owner to the dealership. Therefore, the extended warranty service only becomes active after the original factory warranty period ends.
