Extended car warranties provide car owners with the security of coverage for unexpected repair costs once the manufacturer’s warranty expires, thus ensuring a stress-free driving experience. However, such warranties can have certain challenges and limitations that every car owner needs to know about to make an informed decision when buying an extended car warranty. We provide a few insights on the challenges of extended car warranties.

Challenges car owners face with extended warranties

1. Coverage exclusions

An extended car warranty does not cover all the problems or repairs your vehicle needs. This is particularly true for wear and tear items such as tires, brake pads, windshield wipers, etc., which are not included in the warranty coverage. Depending on the warranty plan, specific vehicle repairs or damages may not be covered. Damages caused by an accident or natural calamities are also not covered by your extended car warranty. If your vehicle had any problems that existed before you purchased the extended warranty those problems will not be covered.

2. Limits on the duration of coverage

Almost all warranties are limited by time and expire once that time is crossed. After the warranty expires the car owner will be responsible for any repairs and replacements. As a car owner, understanding these time limitations on your warranty is important so that you do not miss out on the benefits of coverage and can renew the warranty before it expires.

3. Strict maintenance requirements

Most extended car warranties require car owners to maintain their vehicles in good working condition during the coverage period. Regular maintenance should be performed as per the manufacturer-recommended schedule. Failing to provide regular service and maintenance for your vehicle can void your extended car warranty. To prove to your warranty provider that you have maintained your car regularly, you need to keep detailed records of all the maintenance and service that was carried out on your vehicle to prevent your warranty provider from denying your claim.

4. Restrictions on third-party repairs

Some extended warranty providers require that you only use authorized service centers and workshops to service your vehicle. Using a third-party service center or workshop for car repairs can void your manufacturer’s extended warranty. Furthermore, the manufacturer may refuse any subsequent repairs or replacements on your vehicle. Some third-party extended warranty providers also insist on such a limitation on repair options. They require that repairs and replacements only be performed at specific service centers or workshops, and failure to do so voids the warranty.

5. Geographical restrictions

Most extended car warranties offer coverage that is limited to a certain geographical area such as a country or a particular region. If you take your car out of that region, your warranty may no longer be valid, and you will have to pay for any repairs or replacements from your pocket.

6. Depreciation

As your car ages, it depreciates. Once it depreciates significantly the warranty that you have taken out on it may not be adequate to cover the costs of any repairs it requires, and you will have to pay for them from your pocket.

7. Limit on Claims

A car warranty provider may limit the amount paid for repairs under an extended warranty plan. This means that if the repairs on your vehicle exceed a certain amount you would have to pay the difference on your own. Such warranty clauses are troublesome as more often than not, you would have to finance major repairs on your vehicle on your own.

8. Non-transferability of a warranty

Some extended car warranties may not be transferable to the new owner upon the sale of your vehicle. This would affect the resale price of your vehicle as prospective buyers would not be willing to spend as much on a car that does not have warranty coverage.

As you can see there are quite a few challenging aspects regarding an extended car warranty. However, these should not deter you from purchasing extended warranty coverage for your vehicle as these issues can be easily resolved

Solutions to overcome the challenges of extended car warranties

1. Conduct in-depth research

Before purchasing an extended car warranty thoroughly research the various providers and warranty plans to find the best coverage and price. This involves reading online reviews of the warranty plans and providers. See what their customers say about their customer service and claim fulfillment. You can also request friends and relatives for suggestions and recommendations.

2. Clearly understand the terms and conditions

Get a clear understanding of the terms and conditions of your extended warranty contract. Don’t forget to read the fine print. Ask the warranty provider for any clarifications on terms you cannot understand.

3. Keep up with regular vehicle maintenance

Do not neglect the regular service and maintenance of your vehicle. Maintain detailed records of all repairs and maintenance to prevent denial of your claim. Follow the manufacturer-recommended service schedule and guidelines to keep your extended car warranty valid.

 The challenges associated with an extended car warranty far outweigh the benefits and peace of mind it provides. Besides, these can be easily overcome by conducting meticulous research, understanding the terms and conditions, and maintaining the vehicle well. These limitations should not deter car owners from buying extended warranty coverage for their vehicles.

MP Warranties: A Loyal Warranty Provider in the UAE

We are MP Warranties, a renowned car warranty provider in the UAE. Our car warranties are reliable and we have quick and simple claims processing. Get the best warranty coverage for your car today! Just give us a call at +971 501 604 953 for more details.