Car Buying Tips Guide 1

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covers “internally lubricated parts” of the engine, transmission, and driveaxles, meaning that if some computer module that controls your
transmission fails, you’re out of luck.


If you’re shopping for stated component service contract, it is usually on anolder car that is out (or almost out) of factory warranty coverage. There are (^)
some very good stated component policies available. Many legitimatecompanies offer various levels of stated component coverage for different (^)
prices, ranging from basic insurance against “catastrophic” failure of theengine and transmission, up to ones that cover most of a car’s parts and (^)
systems. Just be aware of limitations of coverage.
Exclusionary coverage contracts cover every component on your vehicle except those in the “Exclusion” section of the contract, hence the name.
While these policies are more expensive, the peace of mind they convey—and potential cost savings to you—can be huge. These days, over half of
all service contract claims involve some type of electrical failure; this iscompounded by manufacturers that keep adding new systems and
subsystems. They also make year-to-year minor changes that you’d notknow about, and which could affect your coverage in a stated component (^)
contract.
There will be variance from company to company in the specific parts thatmight not be covered; other things not routinely covered will be airbags and (^)
other passive safety systems, some emissions systems like catalyticconverters, things that are supposed to wear out like brake pads, tires and (^)
clutch discs on manual transmissions, and usually most of the trim insideand outside a car.

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