Vehicle Extended Warranty Products
If you plan to purchase a new vehicle, keep in mind new vehicles include a Manufacturers Warranty. Generally the manufacturers warranty covers three (3) years, or 36,000 miles, whichever comes first. Some manufacturers offer warranties of up to ten (10) years, or 100,000 miles, whichever comes first. Check with the dealership for details.
Many car manufacturers offer an extended warranty. The auto dealer should have details on a manufacturers extended warranty product. This would extend coverage beyond the original warranty included with the new vehicle purchase.
Some new car dealerships offer their own extended warranty product, or an extended warranty from other sources available to them.
You may want to ask yourself: ?Since I am buying a new vehicle, do I need another warranty??
Some used car dealerships may include a type of short-term warranty or guaranty for the consumer when it comes to the purchase of a used vehicle. Beyond this type of coverage, there are many extended warranty products offered to consumers when they purchase previously owned vehicles.
The cost of the warranty product is often included in the finance arrangements. This results in higher monthly payments, and higher amounts paid in interest over the life of the loan.
We recommend you do your homework before you buy. The policy may contain restrictive language that limits coverage. READ and UNDERSTAND the policy BEFORE you BUY to determine:
- What are my responsibilities in maintaining the vehicle for coverage to apply?
- Are there stated dollar amount payments for certain services?
- Will the policy only pay up to a certain dollar amount?
- What are the procedures for prior approval and for making a claim?
- Are there deductibles for any services?
- Do I understand the exceptions, exclusions and limitations in the contract?
- Is the product right for me?
Vehicle Extended Warranty products are offered to consumers in various ways, including through mail solicitations, the Internet, etc. Unfortunately there are warranty products that are not legitimate products. The decision to purchase an extended warranty should be carefully considered.
Some mail solicitations may use wording where it appears it is a manufacturer extended warranty. We recommend you contact the dealer or manufacturer directly to determine if it is the manufacturers product. Do not rely on the phone number in the solicitation to verify the source of the information.
A Vehicle Extended Warranty product in Utah can only be issued, sold, or offered by an authorized insurer, or surplus lines carrier recognized by the Insurance Department. With a quick phone call, or a quick check on the Departments website, you can verify that the sale of the product adheres to Department requirements.
Information on insurers can be found on our website at the following link Search Company / Agent.
If you have questions about extended warranties, please contact the Property and Casualty Division of the Utah Insurance Department at the following link Personnel Directory.
The following link will take you to an article from Consumer Reports about extend warranties: http://www.consumerreports.org/cro/cars/new-cars/buying-advice/extended-warranties-4-08/overview/extended-warranties-ov.htm
The following link will take you to information on Edmunds.com that discusses extended warranty products: http://www.edmunds.com/caradvice.html
Disclaimer - Links to Other Web Sites As a convenience to our users, the Utah State Insurance Department offers links to certain web sites created and maintained by other public and/or private entities. The Department has no control over linked sites and cannot guarantee, or be held responsible for materials found on any non-departmental site. A link to another web site is NOT a Department endorsement of that site.
It is always advisable to request a copy of the completed, signed application. Representations made in the application may impact your coverage.