You might have spent enough time researching while purchasing a car since it involves a significant financial investment. However, did you do the same when you considered protecting it with extended warranty coverage? Or have you not considered it since your car still has factory coverage? We suggest you seriously think about buying extended warranty coverage for your vehicle since your car will be unprotected once the factory warranty expires. Irrespective of whether you invested in a new or pre-owned vehicle, protecting it with an extended warranty is always prudent to protect it from unforeseen repairs.

While you may be aware of extended car warranty benefits, do you know the limitations? Before deciding on a plan for your car, understand the various aspects of extended car warranties. In this blog, we familiarize you with the limitations of an extended car warranty and how to deal with them.

Limitations of extended car warranties

While an extended car warranty ensures your car receives coverage for longer after the factory warranty has expired, it does have certain limitations in the form of exclusions. All warranty providers may not specify the same limitations in their warranty contracts. Hence, you must read the warranty contract carefully and understand its terms and conditions before signing the contract. We discuss some of the most common limitations you will find in an extended warranty contract.

1. Normal wear and tear

As you continue to use your vehicle its parts will gradually wear out and deteriorate, requiring repairs or replacements. However, your extended warranty will not cover such repairs resulting from normal wear and tear. Warranty companies define normal wear and tear as impairment or decline attributable to normal use and exposure. Normal wear and tear can include faded or peeling paint, wear and tear on the upholstery, etc. However, certain warranty providers offer coverage for normal wear and tear on a vehicle, so enquire your warranty provider about this provision.

2. Vehicle modifications

Extended warranty providers have restrictions regarding the modifications you can make to your vehicle while it is under warranty coverage. Certain modifications can void your extended car warranty. Modifications that can void your warranty or be refused coverage are specified in your extended warranty contract. Ensure you read it carefully before signing and making any vehicle modifications.

3. Restrictions on vehicle age and mileage

All extended warranty providers will have some form of restriction on the age and mileage of vehicles they cover.

Vehicle age

The age of your vehicle will determine whether you can receive warranty coverage. This is because as vehicle ages, its components’ wear and tear also increases, leading to more repairs and replacements of its parts. Beyond a point, it becomes infeasible to repair a vehicle. Hence, warranty companies tend to place a cap on the vehicle’s age for availing of extended warranty coverage.

Mileage

A vehicle’s mileage is another factor considered by warranty companies before approving a vehicle for extended warranty coverage. While the age of a vehicle should be tied in with its mileage, this may not always be the case as a car’s mileage depends on how much the car was driven. A car that is driven for more kilometers than average will have a higher mileage, causing it to cross the mileage restrictions placed by warranty companies, although it may still fall within the age restrictions. These restrictions have been put in place since a vehicle driven for longer will display much more wear and tear than the average vehicle, and require more repairs and replacements than normal.

4. Routine service

Most warranty providers also exclude routine vehicle service and repairs from extended warranty coverage. Routine vehicle repairs and maintenance are mandated in most extended warranty contracts and failure to do so could void the warranty. Failing to adhere to the regular maintenance schedule must void your extended car warranty. 

5. Damage due to natural calamities

Another exclusionary clause you may find in your extended warranty contract pertains to environmental damage to the vehicle or damage due to natural calamities. These will include damage caused by hail storms, Lightning strikes, earthquakes, floods, etc. Such damages to your vehicle are not covered by an extended car warranty. Most extended warranty providers do not cover damage caused by rust and corrosion that is attributable to environmental factors such as the roads being salted during winter or a vehicle being damaged due to neglect in a region that experiences high exposure to salt water.

6. Pre Existing conditions

An extended car warranty will only cover future repairs that arise with your car. It will not cover any pre-existing problems with your vehicle. This means that If your car’s components are damaged due to a problem your vehicle had before buying the warranty, then you will have to pay for it from your pocket. Generally, when you claim your warranty, a technician will inspect the part to find out whether it has failed recently or has happened gradually over time. Moreover, warranty companies may also inspect your vehicle to find out if it has any pre-existing problems before providing you with warranty coverage.

7. Consequential damage

This is another clause extended warranty providers often include in the warranty contract. The consequential damage clause stipulates that only a failed part will be covered under the warranty, while any damage to other components caused by its failure will not be covered by the warranty. Again, this clause is wholly dependent on the warranty provider. Certain providers do not have this clause in the warranty contract and offer coverage for consequential damage. Read your warranty contract carefully to find out if you will receive coverage for consequential damage to your car’s components. 

These are some of the main limitations you will find in your warranty contract. The best way to deal with these limitations is to read your warranty contract thoroughly before signing it. This is because not all warranty contracts are the same and some warranty companies may include all the above limitations in their contracts while others may include just some of them.

MP WARRANTIES – A COMPREHENSIVE CAR WARRANTY PROVIDER IN THE UAE

We are MP Warranties, the UAE’s most dependable car warranty provider. We have the best warranty plans that are highly customizable to the specific needs of your vehicle. We also offer coverage for high mileage vehicles so that you can enjoy peace of mind regarding your car’s repairs and replacements. Do not take the risk of driving without extended warranty coverage. Protect your finances and your car with our reliable extended car warranties. Just call +971 501 604 953 to get in touch with our warranty advisor who will clear all your doubts regarding extended warranty coverage for your car.