United States - 09/14/2019 — Auto extended warranties have become increasingly common at the time of purchase and many people enroll for the service without familiarizing with the finer details of the contract. Thankfully, CarGuard Administration Inc recently shared tips on understanding key information you need to know before closing a deal.
Before signing up for the service, carefully read the policy. Analyze whether the company offering the extended warranty has complaints with consumer protection agencies and ensure the cost benefit is interesting.
CarGuard Administration Inc also advises vehicle owners to pay attention at the exclusion clause and the terms for contract cancellation.
It is vital to inquire about the warranty service network and the applicable service in the city where you live. Avoid signing a blank contract. Also, keep a copy of the policy to prove that you have contracted the service.
According to some legislation, which establish the rules and criteria for the operation of extended warranty insurance, the consumer has seven days to change their mind about hiring the insurance. The customer is entitled to the immediate return of the premium by the same means as the payment was made.
If the window period has expired, the consumer should inquire about the conditions and procedures for the cancellation of the contract.
In the event that the vehicle has a problem and the consumer needs to use the extended warranty, the law sets a 30-day deadline for remedying the issue. The clock starts counting once the vehicle is delivered to the service center or collection point.
It should be noted that any transportation costs related to the repair will be the responsibility of the insurance company based on the conditions set in the contract.
The warranty covers car repairs, such as labor and parts costs. All of this is clearly stated in the contract. Some contracts only provide partial cover, for example, only the gearbox and not the vehicle engine. Some companies have as a requirement that the vehicle has been driven up to a certain mileage.
When the car's factory warranty expires, dealers offer customers a package to extend this term. The consumer can stretch the protection for another year or two. Depending on the age and model, the cost of the service can vary widely. The extension of terms begins to apply once the warranty of the automaker expires.
The full cover warranty covers various aspects of the vehicle, including the engine, gearbox, ABS, suspension, electrical system, among other items. According to CarGuard Administration Inc, it also includes services provided at the brand's own dealerships with genuine parts.
The insurance company provides the service contract and is vested with the powers of representation of the insured. Buyers pay the premium and are insured under the policy as long as the insurance is accepted by the insurer.
In this case, the insured is the individual or legal entity that contracts the insurance. As such, the vehicle owner is exposed to the risks provided for in the coverage indicated in the insurance contract.
However, it is not only the new car that can benefit from the extended warranty, the semi-new can also enjoy coverage. In this case, the coverage is for a maximum of one year and covers only the engine and gearbox, with 24-hour assistance. The advantage is that the investment can boost the value of the car at the time of resale.
A number of vehicle owners ask whether it is possible to take out more than one extended warranty contract for the same vehicle and covering the same risks?
CarGuard says this may be of interest to the insured who wants to reinforce the coverage already contracted by extending the warranty period or opt for a higher value for the coverage ceiling. However, the insured party planning to take out this new insurance must communicate in writing in advance to all insurers involved.
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