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Umbrella Protection

What’s the Difference between a Warranty and Extended Service Plan?

When you purchase a new vehicle, it comes with a manufacturer’s warranty, but the dealer will usually also offer you an extended service plan. Many people are uncertain how the two differ. Should you get that extended vehicle protection plan? How’s it different from the warranty? Here’s what you need to know.

What They Cost

The warranty on your vehicle is built into the price of the car. An extended service plan will always come at an additional price. The exact cost of the extended plan will vary depending on which plan you decide to purchase (there are usually at least two options), and you can often get a better deal on the plans if you’re willing to do some negotiating with the dealer.

Who Covers It

Your vehicle’s warranty is provided and covered by the manufacturer. It is the manufacturer’s way of standing beside their product and guaranteeing that there will be no major issues with the vehicle within a certain time period. An extended service plan is typically provided and backed by the dealership or the company that you purchase the plan from.

Protecting Car

What It Includes

The manufacturer’s warranty usually has a very narrow scope of what it will cover. This typically includes major malfunctions with the vehicle’s power train and other primary functions. It may also include a more limited warranty covering any major issues on the vehicle, like door locks or windows malfunctioning.

An extended service plan will cover a lot more in relation to your vehicle’s functionality. Smaller parts of the vehicle not included in the warranty will often be included in a service plan. This means that if anything goes wrong with your car (barring damage inflicted to the vehicle) within the service plan’s period, the dealership will repair it free of charge.

How Long It Lasts

Most manufacturers’ warranties only last a handful of years, or up to a certain number of miles (whichever comes first). Different manufacturers will offer different warranties on the vehicle, so this may be worth researching if you’re in the market for a car. Often, there are two warranties included on your vehicle: a power train warranty and a bumper-to-bumper warranty. These have different time and mileage limitations on them.

An extended vehicle protection package does just what the name implies; it extends the protections on your vehicle, not only in the scope of what is covered, as mentioned above, but also in how long those protections last. So, if you’re going to be putting quite a few miles on your vehicle in a short amount of time, it’s usually worth the extra cost of getting a protection plan.

A vehicle is a major purchase, and it’s natural to want to limit the amount of money coming out of your pocket with such a large expense. But when you’re spending that much money on something, don’t you want to ensure that your investment is protected? When you consider all of the possible issues that could arise with your vehicle outside of the manufacturer’s warranty, it’s usually more than worth the cost of purchasing extended vehicle protection programs for your new car. Give the professionals at Freedom Warranty a call today to discuss your options.

Fraud Prevention

Protecting Yourself from Vehicle Protection Fraud

With the cost of new cars going up, up, up, more of us are keeping our vehicles for extended periods of time, even after the factory warranty has expired. A vehicle protection plan is a supplemental plan to the manufacturer’s warranty that protects consumers from costly repair bills. There are many companies that prey on unsuspecting consumers by selling fraudulent extended vehicle protection services. Here are ways to protect yourself from vehicle protection fraud.

Be Careful of Robo Calls
In recent years, more than $4 million was refunded to nearly 6,000 people from the Federal Trade Commission after they were tricked by robocalls peddling extended vehicle service contracts and portraying themselves as being affiliated with the vehicle’s manufacturer or the dealership of where the car was purchased. When individuals purchased the service over the phone, their refund submissions were ignored when their vehicles needed to be repaired. Robocallers may already have information about your vehicle or warranty which may lead you to assume they are credible.

Do Not Purchase Just because You Feel Pressured
There are many situations where consumers felt pressured into purchasing the extended vehicle service protection from vendors who called them. The consumers usually did not conduct any research and a large part of it was because of high-pressure sales tactics by the telemarketers. You should be skeptical of any telemarketer who tries to pressure you to make an instant decision.

Do Not Fall for Scare Tactics that You Receive in the Mail
Mailed documents that look genuine may be hard to distinguish. Often, marketers will portray their advertisements as frantic manufacturers or warnings from the DMV. You may see titles such as expiring auto warranty or final notice. This is designed to facilitate action on your part to call the number for more information.

Request an Exclusionary Policy
Exclusionary policies provide a list of what is not covered if something breaks in or on your vehicle. With inclusionary policies, you only receive a list of items that the policy covers.

Don't Give Personal Information over the Phone
If the caller is asking for your credit card number, social security number, or any other personal information, they must send you more detailed information about what they are trying to sell you.

Utilize the BBB and FTC
If you receive a call from a telemarketer that is selling extended warranties, it’s best to conduct a brief search on the Better Business Bureau website to get insight into their reputation. If you were subjected to purchasing a fraudulent extended warranty, then you have the option to file a report with the Federal Trade Commission.

If you would like more information on vehicle warranties, give the experts at Freedom Warranty a call.

Car on Road

Reasons You Need an Extended Vehicle Warranty

Your car or truck will experience a mechanical problem sooner or later. A dashboard light will blink out, an engine part component will wear down, or a door latch will fail to open. Something will go wrong in your vehicle that will result in a trip to a repair shop and a sizable repair bill.

Today’s cars, trucks and sport utility vehicles are more mechanically and technologically complex than their predecessors. Many late-model vehicles are equipped with push-button ignition, navigation systems, and smart technology that tells you if there is someone in your blind spot or slows your vehicle automatically if you get too close to the one ahead of you. No one who buys a vehicle today thinks ahead about the expense involved if one of these high-tech systems fail.

One option for car buyers is to purchase an extended protection plan that covers the cost of unexpected repairs to your pre-owned vehicle. Here are three reasons why an extended vehicle protection provider is essential for your investment.

Extended Warranty Benefits
Most pre-owned cars, trucks or sport utility vehicles are sold “as is”, meaning as the buyer, you're responsible for any repairs. The older the vehicle, the more likely you will have repairs after the original warranty has expired. Extended vehicle protection programs offer owners the peacefulness that repairs to their vehicle are covered beyond the original warranty period.

Return on Investment
You're likely to finance a late model pre-owned car, which means committing to four or five years of payments. An extended vehicle protection plan covers most mechanical problems for an additional number or months and miles. Your vehicle will operate longer and provide a greater return on your investment.

Money Saver
We mentioned earlier the high-tech systems now standard in many late-model cars and trucks. Keyless entry, remote starting, and other systems can cost hundreds or thousands of dollars to fix once the warranty expires. This is where extended vehicle protection plans are the most useful, as a money-saving repair option.

Next to your home, the choice of a car or truck is the most important financial investment you could make. A coverage plan from a reputable extended vehicle protection provider ensures that when things in your vehicle stop working, you can get the repairs done and get back on the road. Give the experts at Freedom Warranty a call.

Warranty

How Purchasing a Vehicle Protection Plan Saves You Money

The purchase of a car is one of the most important financial investments you will make. The body style, performance, gas mileage, comfort and safety are deciding factors in your choice of a car, truck or sport utility vehicle. You also want a vehicle that you expect will last you a long time.

A factory warranty will cover repairs for a limited length of time. The out-of-pocket costs to repair a mechanical or electrical issue can be substantial, especially when your vehicle’s warranty expires. One option that can save you money in the long run is an extended vehicle protection plan.

Warranties typically are from third-party providers that market their products to owners of vehicles well past their warranty date who are looking for some extra coverage. Choosing the best extended vehicle protection plan means doing some research to determine which best fits your needs. Here are a couple of reasons why extended vehicle protection plans are worth the money.

Closing the Repair Gap

Many dealerships offer extended vehicle protection plans as an option to be included in the purchase price of a pre-owned, late-model vehicle. Many buyers are unaware of how close the vehicle factory warranty is to its expiration date. The extended vehicle protection plan closes the gap in repair coverage created by an expired factory warranty.

Longer Protection
Even with access to vehicle history reports, the more miles a car has, the more likely a part or electronic system will fail. An extended vehicle protection plan covers your vehicle for tens of thousands of additional miles and months of driving, which means less money in repair costs and peace of mind for the owner during the coverage period.

Is It Worth It?
You may ask yourself at the dealership if an extended vehicle protection plan is worth the money. Cars, trucks and sport utility vehicles are built better and last longer, and some new car warranties cover powertrain repairs for up to 100,000 miles. On the other hand, you can expect to pay more in repairs as your car ages.

Your choice of the best extended vehicle protection plan will depend on your situation. It helps to research your vehicle’s reliability record, and take into consideration your driving habits and annual mileage. You should also research the estimated maintenance cost for your vehicle over time. In the end, your choice of the best extended vehicle protection plan will come down to how it can save your money in future repair costs. Contact Freedom Warranty to learn more!

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