What Are the 5 Key Terms to Know When Buying a Car Warranty?

A car warranty is an agreement between you and the warranty provider, whereby the warranty provider undertakes to perform mechanical and electrical repairs and replacements on your car in the event of unexpected damage or breakdown. It requires the signing of a warranty contract which can include many terms you do not know. We explain a few car warranty terms that commonly appear in most warranty contracts. Let’s begin by understanding the main types of car warranties.

Types of car warranties

1. Factory/Manufacturer warranties

A factory or manufacturer warranty is provided by the car manufacturer when you purchase a new car. It undertakes to repair or replace any mechanical or electrical defects in the car for a specified period or mileage, whichever is reached first.

2. New car warranties

You can purchase a new car warranty along with your new car purchase. New car warranties are generally provided by the dealership you purchase your car from or a third-party warranty provider. New car warranties are meant to cover repairs and replacements on The mechanical and electrical components of your car.

3. Extended car warranties

Extended car warranties are meant to extend the coverage provided by the manufacturer’s warranty once it expires. It can be purchased along with your new car, you can wait until your manufacturer’s warranty expires. However, extended car warranties provided by the manufacturer must be purchased before the manufacturer’s warranty expires.

 5 Key Warranty Terms to Know

1. Warranty coverage

Warranty coverage informs you about the components of your car that are covered by your car warranty plan. These parts are protected by the warranty and the cost of repairs or replacements in the event of unexpected damage or malfunctions will be covered by the warranty. You will not have to worry about arranging for finance to pay for such emergency repairs. Warranty coverage will differ depending on the kind of warranty you have opted for. A manufacturer’s warranty generally covers all the parts of your vehicle. New car warranties and extended car warranties will only cover the parts specified in your warranty plan. Every warranty plan is subject to exclusions specified in your contract.

2. Warranty exclusions

Warranty exclusions refer to the components of your car that will not receive coverage under your warranty plan. If these parts get damaged or malfunction, the cost of repairs and replacements will have to be paid by you from your pocket. These include wear and tear items such as windshield wiper blades, brake pads, tires, etc.

3. Voiding a car warranty

Every car warranty is subject to certain clauses and requirements that must be fulfilled for you to receive continuous warranty coverage. If you fail to abide by these requirements and clauses your warranty provider can cancel the warranty or void it. These requirements include;

• Ensuring your vehicle receives regular service and care
• Using your vehicle as per the manufacturer’s guidelines and avoiding rough and aggressive driving
• Adhering to the manufacturer’s terms and conditions
• Only performing permitted modifications to the vehicle
• Using high-quality car parts
• Using fuel of the right grade and octane
• Using the right coolant, oil, and other fluids
• Immediately attending to problems with the vehicle and blinking warning lights

Failing to do any of the above can lead to the warranty provider voiding your warranty prematurely.

4. Warranty expiry

Warranty expiry is the date on which your car warranty will expire. Most car warranties come with a duration or mileage expiry. This means that your car warranty will expire either after a certain period or when a certain mileage is crossed, as specified in the warranty contract. Once either of these markers is reached, your car warranty will stop providing coverage and protection for your vehicle. You will then have to purchase additional warranty coverage for your car.

5. Claims

A claim is raised on a car warranty when the vehicle is unexpectedly damaged or breaks down. A claim is a request to the warranty provider to repair or replace the damaged components of your vehicle covered under your car warranty plan.

 You may come across these and other terms when going through your warranty contract. Understand every term and clause of the warranty contract before you sign it. This will ensure you make a smart and informed decision when purchasing a warranty for your car.

MP WARRANTIES: A RESPONSIBLE CAR WARRANTY PROVIDER IN THE UAE

We are MP Warranties, UAE’s most dependable car warranty provider. We provide comprehensive used car warranty plans for all car brands and models including luxury vehicles. We enjoy a good reputation in the field and are relied on by numerous customers for their used car warranty needs. Our plans are affordable and claims processing is simple. You can rely on our car warranties to provide superior protection for your car. If you have queries, all you need to do is call +971 501 604 953 and our warranty advisor will help simplify things for you.