When Does an Extended Warranty Start on a Used Car?
We know like many of you, that learning all there is to know about extended warranties can be a lot to digest. What is what? When do you buy? Who do you buy from? What are the differences that you need to be aware of? What are key benefits to consider? It is a lot to take in!
Well, buckle up! We will dive into the important info to consider when looking at purchasing an extended warranty for your used vehicle. First, let’s learn what is what in the realm of warranties.
Original Equipment Manufacturer (OEM)
An OEM or Limited Factory Warranty will be issued with the purchase of a new car. Each auto manufacturer has individual terms and conditions that apply to their new vehicle. Most warranties guarantee that the new vehicle is free from defects in materials and workmanship. If a repair is deemed as defective, the OEM kicks in to repair the issue, most of the time. Parts and labor are usually covered for an agreed upon time, most commonly 3 years and 36,000 miles, whichever comes first. To understand your individual brand vehicle’s terms, see your local dealer or visit their website for warranty information. Pay attention to exclusions if any.
Certified Pre-Owned (CPO) Warranty
Most used vehicles when purchased from a car dealership come with a Certified Pre-Owned warranty. This usually means the vehicle has passed a rigorous set of inspections that the dealership conducts. Warranty coverage varies per car make and model. Just like any warranty, you should pay attention to the restrictions. Usually repairs need to be conducted at the dealership where you purchased the vehicle. These warranties are peace of mind when buying a used vehicle from a dealership.
An extended warranty can also be called a service agreement, maintenance agreement or service contract. An extended warranty may be sold at the dealership when buying a new car or post purchase as an aftermarket offering. Extended warranties will cost extra and often paid up front or financed along with your vehicle. Like the other options, there are terms and conditions that spell out items covered and those excluded. Most extended warranties are offered for a set amount of years and usually applies to parts and labor.
Mechanical Breakdown Insurance (MBI)
MBI is a regulated insurance product. It, like the other plans, covers major failures that can occur during the ownership of your vehicle. MBI policies have a set of terms and conditions that you will want to review like the other plans mentioned above. MBI policies are usually offered by a third party aftermarket for your new or used vehicle. Important Note: Due to the nature of MBI and it only being offered through an insurance company, it is regulated by the insurance industry for standards and claims.
Never Worry Over Major Breakdowns or Repairs
None of the above plans or policies cover damage caused by a driver or repair damage from an accident or wear and tear. Those repairs are covered by service agreements or basic car insurance. None of the plans should be mistaken for basic car insurance. You will need to keep insurance coverage in case of an accident. Having an extended warranty or MBI means you will not have to unexpectedly shell out hundreds or thousands of dollars for repairs that creep up from time to time. Big repair bills can happen at the worst times, and extended warranties can protect against those.
When Should I buy an Extended Warranty?
No matter how well built your vehicle is, unexpected problems are bound to arise. For many, their vehicle is their lifeline. The ideal is to pick up an extended warranty once your OEM expires. This will give you constant coverage in case a repair is needed. As with any plan or policy of this type, you may never use the coverage but certainly when and if you do have an unexpected breakdown, it can save you thousands of dollars per repair. Peace of mind is worth paying for if you can’t afford for your vehicle to be down for the count.
When is an Extended Warranty NOT Needed?
Common sense tells us that if you can afford to repair your vehicle if and when it breaks down or when those repairs are needed then you may not NEED an extended warranty. In other words, can you afford to self insure your car? One thing to consider is how difficult cars and trucks are to understand nowadays. Between electrical sensors, computer components and microchips, vehicles are more complex than ever. Many claims can cost thousands for one repair issue.
So, based on the above topics reviewed, the decision should come down to these primary questions:
Does your used vehicle purchased have a remaining OEM warranty?
How prone to repair issues is your make and model?
What are your individual driving habits and how will they impact your vehicle?
What are your personal budgeting habits and can you afford repairs if needed?
olive is shaking up the way drivers look at extended warranties. olive owns and operates olive Insurance Solutions. For nearly 20 years our company and its affiliates have been providing mechanical breakdown coverage for vehicles in a consumer friendly way. In 2020 we launched gogetolive.com to take our coverage and products to the next level with a fully digital offering built to serve you. We are a consumer informed product provider, seeking to offer the best product at the right time in a transparent manner.
Our products, customer service, and reputation for excellence have earned us an A+ rating with the Better Business Bureau and we have partnered with some of the insurance industry’s largest companies to back us. We’re in the business of helping you live life covered!
A Smart Investment
In order to protect your vehicle when a repair is needed, having an extended warranty or MBI will suit you well. Most owners tend to file a claim within the first year of starting the extended warranty. Cars are built differently nowadays. Between all the automated components and the computer that literally sits within the engine, costs can soar when a repair is needed. Whether it be a transmission issue, A/C unit or suspension repair, olive will be there to cover the repair. For this reason, an extended warranty can be a wise investment, paying for itself in just one or two claims.
olive benefits include:
- Simple, transparent coverage plans to choose from
- No waiting period for coverage – quote today and be covered tomorrow
- Prices are fixed for the life of your term
- Cancel anytime
- Choose the deductible that makes most sense for your budget
- Coverage across the USA, no matter where you go
- No Yearly mileage limits, we cover up to 185,000 miles no matter how quick you get there.
- Easy online access 24/7
- We offer a simple claim process
- You choose the service center for repairs
- We pay the service center directly
We hope that we helped you consider the options when it comes to covering your used vehicle with an extended warranty. Whether you own a car, truck or SUV depending on the amount of time spent in and miles driven may determine if you want to cover it with an extended warranty. When it is time for necessary repairs, you’ll be worry free knowing it’ll be fixed immediately. Time is precious, we don’t always have the time to be down a vehicle as we wait and save to pay for the repairs. With an extended warranty, you pay your deductible along with any uncovered items and you are literally back on the road, enjoying life.
Take your insurance coverage to the next level at gogetolive.com
Cover it. olive it
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