What
Terms are Available for Auto Warranties?
The
term of vehicle warranty coverage is stated as months and/or
miles. Typically, but not always, the more months and/or
miles the policy covers, the more costly it will be. Examples
of coverage terms are 36 months / 45,000 miles, 60 months
/ 75,000 miles, or 120 months / 100,000 miles.
It
is important to understand that all policies are in
effect until “whichever comes first”. Meaning, for a plan
with coverage for 2 years and 24,000 miles, and you drive
50,000 miles in two years, your warranty will expire in
two years as soon as you reach the 24,000 miles. It’s critical
to factor in your driving habits, and to focus more on the
plan’s mileage allowance.
Warranties
are typically available from 12 months to 120 months. In
some cases, the additional price for adding another year
is very inexpensive, sometimes less than $100, and should
be asked about when speaking with a warranty company or
broker.
The
mileage aspect can be most confusing, but it is also
the most critical. Warranty plans use the term mileage to
refer to either the total number of miles on the odometer,
or to additional miles beyond what is currently on your
odometer. This is a crucial distinction to note when arranging
your coverage.
As
an example, if you have a vehicle with 50,000 miles, and
the warranty plan provides coverage for covers 48 months
/100,000 miles on the odometer, you are only covered for
50,000 miles, or until your odometer reads 100,000 miles.
If you have a plan that covers you for 100,000 additional
miles, then you are protected until your odometer reads
150,000 miles.
Normally,
for bumper to bumper plans, mileage stated in terms of total
miles on the odometer, rather than additional miles. Conversely,
stated component plans present mileage as additional mileage
to what your odometer currently reads. Some plans, typically
short term, stated component ones, may offer unlimited mileage.
Ensure that you understand the mileage terms of the plans
you are researching, so that the coverage being offered
is clear.
