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However, these options only apply if your car is paid off and free of any liens. You must keep full coverage if you're still making car payments. Your car is worth less than $3,000. If your car is ...
For example, if you're putting $100 or $200 away each month to build a down payment, save an extra $25 to $50 monthly to cover the cost of an extended warranty.
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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.
Extended auto warranties often offer other perks not included in a general factory warranty, such as trip interruption insurance and roadside assistance. Auto warranties generally do not cover vandalism or theft, dings or dents, road salt damage, environmental or natural disaster-related damage, car wash damage, or normal routine maintenance. [8]
The term full coverage is actually a misnomer because, even within traditional "full coverage" insurance, there are many different types of coverage, and many optional amounts of each. "Full coverage" is a layman's misnomer that often results in drivers and vehicle owners being woefully underinsured.
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