You’ve just purchased a used car warranty because you want to feel safe from unexpected auto repairs. You’ve read the car extended warranty reviews and searched for any hidden extended warranty service complaints and are reasonably sure the company you’ve chosen is the best plan available. So now, whatever could go wrong with your car would be a covered condition, right?
Get to know this tiny clause in used car warranty plans.
There is a little known clause in an auto extended contract. It’s called the “wear and tear” coverage. In technical terms, it is: “the expected reduction in performance of a part due to the car’s age, mileage, or use”.
Most denied claims are the result of “wear and tear” exclusions. And most extended service contract holders assume their warranty contract will pay for these claims, since their worn-out parts are listed as covered components. However if you purchased your car extended warranty without “wear and tear” coverage, you might be required to pay for worn-out parts. The best extended warranty contract language states: “We will reimburse you or a repair facility for the fair and usual cost to repair or replace any breakdown of said parts on your vehicle.” However, this language still does not mention compensation for parts not functioning due to normal use beyond factory tolerances.
When buying an auto extended warranty, see if the contract includes “wear and tear” coverage as a condition of your warranty terms.
Parts such as tie-rod ends, wheel bearings, CV joints, U-joints, suspension bushings, and even many engine parts are considered parts that will wear out over time. If these parts have worn down beyond the manufacturer’s tolerances and expected lifespan, and your agreement does not include “wear and tear” coverage, you will be responsible to pay for these repairs. “Wear and Tear” coverage pays for parts worn beyond factory tolerances that affect the proper drivability of the vehicle.
Make sure your “wear and tear” clause in your warranty contract states the following in clear language.
“Wear and tear” coverage should be openly described in your warranty fine print with wording similar to this: “It is the company’s responsibility to repair or replace any part that no longer meets the manufacturer’s specifications, whether it is broken or not.”
If you find this simple statement in your automobile warranties coverage conditions, you can be assured that you will not face the disappointment of a rejected claim if the failure is attributed to “wear and tear.” Some warranty plans offer “wear and tear” coverage only on vehicles with low odometer readings. If your vehicle has high mileage, you may not be eligible. Ask your representatives for details.
Many do not know that they may purchase factory extended warranties online and at cut-rate pricing. Learn how to bypass high prices from your local GM, Ford or Chrysler dealer.
Learn the two best ways to determine the strength of your auto warranty company.
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.
Pingback: How Auto Extended Warranties Work « Warranty Watch « WarrantyWatchman.com