How a Vehicle Warranty Works
A vehicle warranty is designed to mitigate the risk that the covered vehicle will break down and cost a lot of money to get fixed. It is meant to cover the parts and systems that cost a lot to get repaired or replaced, such as the transmission or drive train. Generally it will not cover the less costly things, but insurance companies are always more than happy to cover anything you want, as long as you are willing to pay for it!
Most auto dealerships will offer you a warranty at the time of your purchase, but many companies will also offer independent warranties after you have bought your new vehicle. These may be a good idea, but sometimes they are more disreputable, so be sure to check them out closely before you decide.
Once you do have the warranty, if you break down at any time during the covered period and it is a covered item, the mechanic shop you choose needs to be one that will do the work under the warranty agreement. Some places are not accepted by the warranty company if they are not properly certified. On the mechanic's side, they may have had trouble collecting on warranty work, so choose not to accept this type of work. Be sure to find out those details before you get your vehicle towed anywhere.
After the mechanic has had a chance to look at your vehicle he will know if it is covered by the warranty or not. He will let you know if it is covered in full, partially, or not at all. If you find it is not covered like you feel it should be, you will have an opportunity to dispute with the company. This isn't usually too successful, but is worth a try.
Often time’s warranties only cover a few of the major parts and systems. People usually assume it covers all mechanical issues that may arise. You will want to be sure to know what exactly is covered. Be sure the warranty covers all parts and labor. Too many times the labor is not covered and you will be responsible for paying the mechanic.
When mechanics are questioned as to their opinions of what the chance is on a normal basis that the covered parts and systems, they may have surprising answers. They have probably worked on enough different makes and models of vehicles to know if they are sound.
Whether a vehicle warranty is worth the cost is strictly a decision each individual must make for themselves. Many people like the security of knowing they will not have to pay up to thousands of dollars if something major happens. Still others feel that the odds of something major happening are very remote. They choose to take the risk and save the money the warranty will cost. Each person will have to make the final decision. But remember that warranty companies would not still be in business if they had to pay out more than they are paid.