Getting the Most Out of Your Auto Insurance

What To Know About Extended Auto Warranties

8 February 2022

Eleanor Allen

Do you have a car that is past the manufacturer's warranty, and you're considering an extended auto warranty so that you are covered if something goes wrong? If so, it will help to know the following things about this unique type of warranty.

What Is An Exclusionary Auto Warranty?

There are two types of extended auto warranties that you can purchase, with the first one being an exclusionary auto warranty. This works by the warranty provider giving you a list of parts that they will not cover if they were to break. Everything else will be covered by the warranty, which makes this type of policy a better option because it typically covers more items. It's common for an exclusionary policy to not see coverage for items that experience everyday wear by using your car, such as your car battery or windshield wiper blades. 

What Is An Inclusionary Auto Warranty?

An inclusionary auto warranty is the complete opposite of an exclusionary warranty. The warranty provider is going to give you a list of parts that are covered by the warranty. There are often multiple tiers of inclusionary coverage, with you paying more for a better warranty that covers more parts.

Is Labor Covered With An Extended Auto Warranty?

It's always important to read the fine print of your extended auto warranty to understand what kind of labor is covered when having work done to your vehicle. It is common for there to be a cap on how much the warranty will pay per hour, which may or may not cover the labor that needs to be done on your vehicle.

For example, you may have a cap of $100 per hour for labor as defined in your policy. This could be enough to cover basic repairs for a sedan, but not enough to cover the labor on a more expensive sports car.

Do You Pay A Deductible?

Your manufacturer's warranty did not have a deductible if you needed to get repairs done. However, it is common for an extended auto warranty to have a deductible that you must pay before the warranty provider will cover the rest of the repair. The amount of the deductible will play a big role in how much you pay for the warranty itself, with a lower deductible increasing the cost of the warranty. 

Have more questions about extended auto warranties? Reach out to an auto warranty provider in your area for more information. 

Share