Sometimes, it is a good idea to buy an extended auto warranty because it is inevitable that the car will break down. When the time comes that the car needs repair, you will not be footing the bill for the unfortunate situation. Auto warranty is like saving money for a rainy day because you will never know when you are going to use the fund. Extended auto warranty is warranty that goes beyond what the auto manufacturer provides.
The types of new car auto warranties are basic, powertrain, corrosion, and roadside assistance. Basic – or bumper-to-bumper coverage, is general coverage that will pay to repair defects in factory-installed parts. Coverage is included in the purchase of a new car. The warranty is described in terms of time and mileage, for example: 3 years or 36,000 miles whichever comes first. Powertrain – or drivetrain warranty covers the engine, transmission and transaxle parts and usually lasts longer than the basic coverage. It is included in new car purchase and might extend basic coverage to 5 years or 60,000 miles. Corrosion – covers rust that causes holes in sheet metal in doors or side panels after the protective coating has been compromised from an accident or natural exposure. And lastly, roadside assistance – provides help with towing and tire-changing if the car breaks down while travelling.