Beware of Non-Covered Car Extended Warranty Repairs

The following is a list of non-covered conditions most auto extended warranty holders are not aware of. Contrary to what you’ve been told, not every claim on your “bumper-to-bumper” warranty will be covered. This list of non-covered conditions will make you aware of some potential pitfalls you may encounter;

1. Denials known as “wear and tear” exclusions

Any breakdown caused by normal “wear and tear” is not covered, unless you purchase the “wear and tear” option which is offered by most extended warranty plans up to a certain mileage restriction. Under the definitions of most aftermarket used car warranties, covered breakdowns do not include parts that are worn beyond manufacturer’s tolerances. Wear and tear claims are happening more often but are usually seen on higher mileage vehicles.

2. Are you late on your oil changes?

Claims resulting from lack of proper fluid levels in your vehicle are not covered. One of the benefits to the modern quick lube experience is they will check and top-off all your fluids. While you are there, make sure the service technician checks the fluid levels of your engine, transmission, power steering, brakes, differential and windshield washer system. Keep and record their inspection and completion sheet.

3. Is your car a work vehicle too?

Claims will be denied resulting from “commercial-type” activities including towing for hire, construction, job site activities, hauling for hire, snow removal for hire and off road use. The “commercial” package may be purchased on most vehicle extended warranty companies’ list of options which will cover the above commercial usages. If you are purchasing a vehicle extended warranty and will be using your vehicle for these activities (even if on occasion), be sure to pay the extra surcharge of $2-300 dollars for the “commercial” option.

4. Failure to meet recommended maintenance

Any breakdown caused by the failure to maintain your vehicle under the manufacturer’s specifications will be denied. What first comes to mind is timely changing the oil and filter. But for the higher mileage vehicles, most vehicle extended warranty companies are looking for timing belt changes as per the manufacturer’s required time interval. Proper transmission fluid changes are also a requirement.

5. Your trailer is too heavy!

Any breakdown resulting from towing a boat, trailer or anything else that exceeds your vehicle’s recommended weight limits will be denied. Unless equipped with your manufacturers’ optional “trailer tow package”, most cars and light trucks are not capable of towing a trailer of any substantial weight. If your transmission is broken and you have a trailer hitch installed, the vehicle extended warranty inspector will check to see if your vehicle was equipped with the factory “trailer tow” package. If not, expect him to deny the claim due to improper towing capacity.

6. “It was broke when I bought it”

Any breakdown caused by a condition reasonably determined to have existed prior to the contract purchase date (pre-existing-condition) will be denied. If you buy your vehicle from a credible auto dealer, it should have been fully inspected for problems prior to sale. Some vehicles are sold with pre-existing mechanical or electrical problems. Most vehicle extended warranty companies know how to determine if your vehicle was not in good operating order when sold. Be aware of this.

Due the unpredictable nature of auto breakdowns and contrary to what you may have been told, not every claim on your “bumper-to-bumper” warranty will be covered. This list of non-covered conditions will make you aware of some potential pitfalls you may encounter.

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About the authors: As an 11 billion dollar U.S. business per year, the auto extended warranty is an integral part of the vehicle ownership experience for millions of Americans.

Written by a group of industry professionals with a combined 30 years experience, WarrantyWatchman.com is a consumer protection site and premier source for information regarding auto-extended-warranties.