Suspension Warranty Coverage Explained

In this brief article we are going to discuss the different Warranties that cover Suspension problems, and to what extent the coverages are useful.

Are suspension problems covered under warranty? 

The short answer is No and YES. 

‘Yes’, if there happens to be a manufacturing defect in our suspension, the Car manufacturer will have to replace it at no cost, once it is established that there genuinely was a defect in your particular example.

‘No’, because vehicle manufacturers categorize the suspension as an item that is subject to wear whose life is subject to the use/abuse of the purchaser.

But since suspension is a wear and tear problem, you would not get the warranty coverage from the Car manufacturer beyond a certain limited mileage or time period, eg. 30000 kms 1 year limited. Beyond this period, you won’t get covered even if the part design from the manufacturer side itself was sub-standard and failed due to this reason. 

But there is an easy way out. Instead of depending on the manufacturer, you can purchase an extended warranty from an “Extended Warranty Company”. Some companies sell vehicle service contracts that do cover suspension components.

What is an ‘Extended Warranty Company’?

Extended warranty companies are basically insurance companies who sell policies that extend the warranty period of any consumer durable product beyond the period that is normally offered by the respective product manufacturer. It covers the cost of replacement or repair of the product through the period of the purchased policy.

A Car is also a kind of consumer durable and therefore, there are extended warranty products that cover the cost of issues that occur through the course of ownership of a car.

What are the different types of Extended Warranty Companies?

The two major types of Extended Warranty Companies are:

  • Direct Warranty Provider
  • 3rd Party Indirect Warranty Provider

Direct Warranty Provider

A Direct warranty provider takes direct responsibility of the payouts of the cost of repairs and replacements in the event of a claim.

3rd Party Indirect Warranty Provider

A third party warranty provider is usually tied up with a 3rd party finance company. In the event of a claim, the warranty provider first gets paid, and then the tied up finance company becomes the legal entity responsible for paying the claim amount.

Overall, the customer experience is far better with a Direct Warranty Provider since this company is responsible for the entire claim process. Also, the time taken to settle a claim is faster and is less painful when dealing with a Direct Warranty Provider.

How Does the Extended Warranty work?

For example, a certain service contract product ‘X’ covers vehicles with up to 300,000 miles that Car manufacturers do not cover under normal circumstances. As per the terms of the product ‘X’, you get paid somewhere between 50-75% of the bill, and you foot the rest of the bill. In dealing with expensive replacements like chassis control electronics, for e.g., you potentially save thousands of dollars in maintenance on older & more expensive vehicles.

Are ‘Extended Warranties’ really worth the money?

Hence, ‘Extended Warranties’ are highly recommended irrespective of the class of vehicle that you plan to own. ‘Extended Warranties’ cover certified used cars in several instances. 

So yes, an extended warranty would therefore be a great incentive for you to purchase and experience that certain used luxury car that you have been putting off for a long time. Under normal circumstances you would have hesitated to buy, fearing repair and parts cost. But now, with an extended warranty in place, you can have your cake and eat it too!

Conclusion

In this brief article we have discussed the different Warranties that cover Suspension problems, and to what extent the coverages are useful.

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