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Mechanical breakdown insurance, also called car repair insurance, is a type of insurance policy or an endorsement to your auto insurance policy that helps cover the cost of mechanical and ...
A service contract is a type of extended warranty (although may not be legally considered a true warranty) that is typically available for purchase at the time of the vehicle sale and usually includes roadside assistance.
The scope and duration of automotive warranties can vary significantly, but they generally cover areas such as: bumper-to-bumper warranty, powertrain warranty, corrosion warranty, emissions warranty and others. [2] There is also an "extended car Warranty" also known as a "service contract" which is purchased separately.
The FTC specifically identified that informing consumers that warranties are voided if they break a warranty sticker or seal on the unit's packaging, use third-party replacement parts, or use third-party repair services is a deceptive practice, as these terms are only valid if the manufacturer provides free warranty service or replacement parts ...
A 2019 study found that people buying an extended warranty believe the product in question is more likely to break than it is. The way to correct for this is to do your research ahead of time.
This includes requesting service records as well as vehicle history reports, title details and accident information. Ask the seller about past and current vehicle issues or recalls.
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