Vehicle Inspection: Why Your Warranty May Depend On It

What Is A Vehicle Inspection?

When you purchase an extended warranty, the Administrator of that warranty will want to sure that there is currently nothing wrong with it before they take on an obligation to pay for repairs.

Some extended warranties will require a waiting period before you can make a claim. Other extended warranty companies will require what’s commonly known as a vehicle inspection before they’ll authorize payment for your repairs.

How Does A Vehicle Inspection Work?

In the event that an inspection is required, you’re responsible for scheduling and paying for the inspection, and your vehicle is not covered until the inspector gives your car a clean bill of health. If your car fails the vehicle inspection, you will be required to fix any necessary repairs out of your own pocket before your vehicle is eligible for coverage.

We strongly recommend that you never try to buy a warranty for a vehicle that is already broken. Aside from the fact that you won’t be able to get a refund on the inspection fee, it’s also considered fraud, and you could get in big trouble (like fines, jail, or worse!) if you get caught.

Why Can’t I Buy An Extended Warranty When My Vehicle Is Already Broken?

Warranty companies need to make sure your car is not broken or experiencing problems before you purchase a used car warranty for the same reason that you can’t buy auto insurance to cover a car accident that your vehicle had in the past.

Now lets say warranty companies took on every vehicle that came their way with no question. Let’s face it, everyone would wait until their vehicle was already broken to go out and buy a warranty.

And if every vehicle that a warranty company takes on is already broken, then the administrator is paying for a large repair right at the start of the warranty for every single vehicle they have enrolled.

To stay in business they would have to raise prices, and eventually no one would be able to afford a warranty at all. So, warranty companies have to make sure your vehicle doesn’t have a pre existing condition before they can cover it.

Here’s Why It Matters To You

A situation like the one above would naturally lead to an increase in extended warranty prices to make up for the costs of staying in business. Either that, or the administrator would have to deny claims left and right just to break even!

A reputable warranty administrator would much rather make sure your vehicle is in proper working order instead of charging you an out-of-this-world fee or refusing to pay your claim down the line.

If you do encounter an extended warranty company that does not require you to have either:

a) A waiting period
or
b) A vehicle inspection

…run far far away! Any company that doesn’t care whether or not your vehicle is a high risk to cover is the same type of company that will either go out of business very soon (and take your money with it), or they’ll be very hard to get a hold of when you car, truck, or SUV finally does need a repair.

If you’re planning on keeping your vehicle, always extended your warranty sooner than later. Too often, people procrastinate on it, only to remember that they should have taken care of it once a problem pops up, and by then it’s too late!

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