As a car owner wanting to care for his/her car, you may often wonder how to choose the optimal warranty coverage based on your needs. This is a difficult choice, given the number of warranty providers in the market. You need to choose between various plans, coverage options, and pricing. This can get extremely overwhelming for car owners who do not know how to go about comparing various warranty plans and providers. We’ll tell you everything you need to know about car warranties and how to decide the optimum warranty plan and coverage for your vehicle.

What is a car warranty?

A car warranty can be described as a vehicle service contract where the warranty provider agrees to repair vehicle parts or replace them due to factory defects or improper installation. There are exceptions to the coverage offered by warranties such as damage caused by accidents or normal wear and tear. New cars come with a manufacturer’s/factory warranty which generally provides coverage for a certain number of kilometers or years whichever is reached first. A factory warranty usually does not have deductibles. Once the factory warranty expires car owners can buy further coverage for their vehicles known as extended warranties. Extended warranties almost always charge a deductible. Such warranties can be purchased for a new, pre-owned, or used car and are offered by third-party warranty providers. Sometimes extended warranties are also provided by car manufacturers.

Since the problem of choosing a warranty does not arise with a factory extended warranty, we will focus on extended car warranties and how to choose the best one for your car in this blog.

What benefits will you get from extended car coverage?

Most car owners hesitate to buy extended warranty coverage for their vehicles because of the associated cost. While an extended car warranty does cost you either an annual or a monthly amount, you have to compare it with the benefits you will receive in return. An extended car warranty protects you from unknown future expenses on the possible breakdown of your vehicle. It is a safety net that holds you up financially when you have to pay for expensive repairs on mechanical breakdowns. Some of the specific benefits you receive are;

1.       Comprehensive coverage

A bumper-to-bumper or comprehensive extended car warranty will protect all the major components of your car, barring a few exceptions specified in the warranty document.

2.       Savings on repairs

In the long term, an extended car warranty helps you save on repairs and replacements as it neutralizes the effect of inflation on vehicle components and labor charges.

3.       Peace of mind

You are assured of a worry-free driving experience with extended warranty coverage.

4.       Flexibility of choice

You have the flexibility to customize warranty coverage for your vehicle, depending on its specific needs.

5.       Enhanced vehicle value

Extended warranty coverage increases your vehicle’s resale value in the pre-owned vehicle market.

However, not all warranty plans are equal and while some providers are reliable, others may not be as trustworthy. So, before investing your hard-earned money, it would be advisable to study the clauses in the warranty document carefully. Check the extent of coverage the plan provides, and which components of your car are covered. Also, research warranty companies before you settle on a specific provider.

Coverage offered by extended car warranties

Extended car warranties come with various kinds of coverage and pricing. They typically cover the engine, transmission, electrical system, brakes, and other components per the warranty terms and conditions. Commonly provided coverage includes;

1)  Powertrain coverage

This warranty coverage typically includes the engine, transmission, and cylinder heads.

2)  Drivetrain coverage

A drivetrain warranty covers components that enable you to drive your vehicle including the transmission, axial shaft, wheels, and drive shaft.

3)  Bumper-to-bumper coverage

This is comprehensive warranty coverage and includes all the components between your vehicle’s bumpers. However, depending on the bumper to bumper warranty provider, certain parts may be excluded from coverage.

4)  Corrosion coverage

This covers the body panels and structure of your vehicle and protects it from rust and corrosion.

5)  Emissions coverage

This coverage includes repairs and replacements of components subject to government emission testing.

6)  Exclusionary coverage

With this kind of coverage, the components listed in the warranty will not receive coverage or be excluded while the rest will be covered.

7)  Inclusionary coverage

With such coverage, only specific components mentioned in the warranty document will be covered under the warranty.

8)  Hybrid coverage

Such warranties are a combination of inclusionary and exclusionary warranties. They offer coverage for a specific list of components in the warranty document and also cover any other components damaged due to failure of the components covered by the warranty.

9)  High mileage coverage

High mileage coverage is provided for vehicles that have a mileage exceeding the average level. Only a few components are covered under such warranties, but they are still useful for high-mileage vehicles.

All extended car warranties have some exclusions that will not be covered under the warranty plan. Be extremely careful about these exclusions and read the fine print of your contract before signing on the dotted line.

How to decide which extended warranty is best for your vehicle?

Deciding which extended warranty plan is best for your vehicle is not an easy task. For this, you must consider what your requirements and preferences regarding warranty coverage are. Questions you need to ask are;

•       For how long will you retain your car?
•       Do you drive a lot in a day?
•       What is your budget for repairs?
•       What is the extent of risk you are willing to take regarding your vehicle’s repairs?
•       What level of stress can you take on when it comes to your vehicle’s repairs?

The answers to these questions will help you decide on the best extended warranty provider and plan for your vehicle.

MP Warranties – A Trustworthy and Valuable Car Warranty Provider in the UAE

We are MP Warranties, a car warranty provider of good standing in the UAE. We are committed to ensuring our customers receive comprehensive coverage for their vehicle repairs with our customized extended car warranty plans. Our plans ensure you never have to worry about paying for the repairs and maintenance of your car. We have plans tailor-made for new vehicles as well as pre-owned vehicles. Besides, we ensure our customers receive all the information necessary for them to make informed decisions about their vehicle warranty. If you wish to buy a warranty for your car, we invite you to explore our extended car warranty options. Let’s work together to protect your vehicle. Reach out to us at +971 501 604 953 for more details.