Instant quote. Finance options. About us. Can't Recommend Highly Enough!! Meet our partners Get access to an unmatched panel of finance and insurance partners all in one place, instantly. Let's get started Estimate your repayments to get started. Get my quote. Commercial Equipment. Personal Loans. All Products. Company About Us. Resources Calculators. Whether buying new or used, if your vehicle comes with a factory warranty that will cover you for the time you plan to drive your vehicle then an extended warranty doesn't make sense.
If you plan to drive your vehicle longer than this period, you may consider purchasing an extended warranty which goes beyond the factory coverage period. If you purchase a vehicle no longer covered under factory warranty an extended warranty may be your only coverage. Extended warranties are provided by vehicle manufacturers Ford, Toyota, GM , third-party companies and some registered motor vehicle dealerships. Extended warranties can be offered by a motor vehicle dealership during, and sometimes even after, a vehicle has been purchased.
Note: If you're buying a vehicle from a dealer do not assume the warranty is from the manufacturer. The dealer may offer extended warranties from the manufacturer as well as third-party warranties.
Extended warranties can be tailored to cover parts and labour and specific items such as: transmission, engine and other major components. Beware of exclusions such as seals and gaskets that limit coverage. Be sure to understand what is covered under your agreement and what is excluded as they vary by provider.
If you are buying a manufacturer's extended warranty for a vehicle already under a manufacturer's warranty, the extended warranty starts the day you take delivery of your vehicle.
This will cause an overlapping of warranty coverage. Dealers offer different types of extended warranties with a wide range of coverage and as you increase coverage or term the price normally increases. If the price seems too good to be true pay close attention to time and kilometre limits, the deductible along with items covered and claim limits. A deductible is the predetermined dollar amount related to each claim for which you are responsible. Deductibles are found in most extended warranty products and vary just like with insurance policies.
Consumers may need to call the provider to activate its coverage as the dealer may not be able to do this for you. This call for activation is simply a marketing tool by the extended warranty provider to up-sell you on their products which may be more costly.
You should ask your dealer ahead of time if there is an activation fee and get the amount in writing. All-in pricing legislation requires this fee to be included in the advertised vehicle price.
Most extended warranties require consumers to maintain their vehicle within manufacturer specifications or those specifications set out within an extended warranty. OMVIC recommends consumers keep records of all maintenance performed on their vehicle, including fluid changes, and any work done to the body or mechanical components to help ensure a repair claim isn't disputed.
A manufacturer's extended warranty may allow you to complete repairs at any franchise dealership. A third-party product may direct you to specific repair facilities. A dealer warranty offers repairs at their facilities. Consider this carefully when reviewing your options especially if you travel. If your warranty provider requires you to have repairs, or an inspection done, at the premises they own and operate you may be charged more than fair market value which deems your warranty useless.
Before you purchase your extended warranty, be sure to understand any claim limits which restrict coverage. Also, check the contract for limitations on where you can and cannot have your vehicle repaired, and for depreciation clauses that can reduce the amount paid for repairs based on vehicle mileage. And know who carries responsibility for claim payouts.
If you bought your policy from a dealership or agency that goes out of business, the policy will no longer cover repairs you paid for in advance through premiums. According to Credit Karma and the Consumer Federation, the best money-saving approach regarding planning for car repairs is making payments to yourself into an emergency fund.
That way, says Gillis, if you don't end up needing the money for repairs, you can put it toward your next car purchase. There are other people who can save money by taking a more hands-on route and setting aside money for anticipated repairs. My reporting has taken me everywhere from Baghdad, Iraq, to the Detroit auto show, along the U.
If my travels have taught me anything, it's that stuff—consumer products—is at the center of daily life all over the world. That's why I'm so jazzed to be shining light on what works, what doesn't, and how people can enrich their lives by being smarter consumers.
When I'm not reporting, I can usually be found at home with my family, at the beach surfing, or in my driveway, wrenching on my hot rod '74 Olds sedan. Sign In. Become a Member. Remember Me. Forgot username or password? Not a member? Need further assistance? Please call Member Services at
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