Product
Warranties generally provide more basic coverage than a
typical extended warranty. A product warranty is permitted
to provide coverage only to parts that are in direct contact
with the product or parts that are mechanically connected
to vehicle components. For example, a manufacturer
of air conditioning lubricant may warrant that the air conditioner
will not break, because of using their product. However,
the manufacturer is not permitted to warrant that the car’s
radio will not break, since the radio is not in direct contact
with the air conditioning lubricant.
Product
warranties may not be offered sold for a distinct price
and must be offered free of charge. These warranties, or
guarantees, typically limit how much you can recover for
repairs. While extended warranties must be guaranteed by
an insurance company, product warranties do not.
