When you buy an automotive repair warranty, it's a good idea to understand what is included. Some coverage does not cover wear and tear on normal parts, or those that will be replaced after a specified period of time. Other parts of the warranty are excluded from coverage, such as tires and batteries. Other important details to look for in an automotive repair warranty include exclusionary coverage, cost, and what pre-authorization is required. Here's how to compare automotive repair warranties to find the best one for you.
Exclusionary coverage
While many vehicle protection programs offer some form of automotive repair warranty, exclusionary coverage is usually the most basic option. These plans typically include most vehicle components, but don't cover parts, services, or maintenance. In addition, they don't cover physical damages in accidents, which would be handled by the vehicle's insurance provider. Exclusionary plans also don't cover damages that aren't the fault of a manufacturer, such as a cosmetic blemish.
Exclusionary coverage for parts that are expected to wear down with regular use
Exclusionary coverage plans cover the majority of a vehicle's components. However, they do not cover repairs to parts that are expected to wear down with regular use. Similarly, exclusionary plans do not cover repairs for physical damages that occur in collisions. Your insurance provider will handle these issues. Furthermore, exclusionary coverage does not cover cosmetic damage resulting from lack of maintenance.
Requires pre-authorization of repairs
A pre-authorization program evaluates repair order data and applies a set of rules. Pre-authorization rules are used in Auto Warranty applications. The warranty administrator creates the program. Each repair line must follow the pre-authorization rules and the system creates a Prior approval case for each repair. If a pre-authorization program is not created or is not in place, a repair order will remain on hold.
Cost
Automotive repair warranties vary greatly in cost, with the most comprehensive plans requiring an upfront premium of more than $1,800. Those with more expensive vehicles are more likely to incur higher premiums, while those with lower mileage will have to pay lower premiums. However, some auto warranty providers charge as little as a few hundred dollars. There is no universally accepted price scale for automotive repair warranty premiums, so it is important to check all the details before making a decision.
Comparison of auto repair warranty to car repair insurance
A comparison of automotive repair warranty to car-repair insurance is important for car owners to understand what each type covers. Most car repair insurance companies require drivers to purchase the coverage during the first year of ownership, while a warranty is still in effect. This type of coverage does not cover the costs of repair bills incurred after the warranty period expires, and the premiums are higher as the car ages.
