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Wednesday 6 June 2012

Car Warranty Documents

Your car warranty can help you avoid the hefty costs of certain repairs and replacements. However, a car warranty cannot protect you if you don't understand what it says. Learn how to read your warranty, so you know just what to expect if you need a repair.

Instructions

    • 1
      Determine the definitions and terms that will be used in the warranty. In the first section of your warranty, you will find the language that will be used in the documents. Pay particular attention to which words refer to you and who will be responsible for paying for claims--often called the administrator.
    • 2
      Read the section about breakdowns carefully. This passage will tell you how the company defines what a breakdown is and what causes a breakdown. Remember that some warranties might refer to mechanical problems as failures.
    • 3
      Locate the sections in the documents that tell you exactly what is covered. You might see the words bumper-to-bumper or exclusionary, which means the warranty covers most car parts. Warranties that are inclusionary generally cover only specific parts, such as the engine and transmission.
    • 4
      Read the section of the document that talks about exclusions. In some warranties, it is easier to determine what is covered by understanding what is not covered.
    • 5
      Identify the time frame or term of the contract that the warranty applies to. This is where you will find the date on which your warranty begins. Also, this section will clarify how long, both in time and mileage, the warranty will last.

Tips & Warnings

  • Many warranties will include sections that talk about conflict resolution. Although you hope your claims are never denied, find out what the process of filing an appeal is.
  • A key term to look for is "deductible." This will tell you whether you will be responsible for any payments when you need repairs. Note whether the deductible is per problem or per visit to the repair shop.
  • "Powertrain warranty" is a common term that refers to a warranty that covers the engine, transmission and some related parts. It might also be called a drivetrain warranty.
  • Your warranty will include information on things that will cause your claims to be denied. Be sure you understand these, including your maintenance requirements.
  • Be wary of any company that will not allow you to see the complete copy of your warranty before you buy it.
  • Beware of any seller who seems rushed, tries to pressure you, won't answer questions clearly or won't explain the warranty section by section.

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