What Happens To Your Warranty After A Car Accident

What Happens To Your Warranty After A Car Accident?

So, you’re probably here because you were recently in a fender bender, and now you’re wondering…

“What happens to my warranty after a car accident?

Well, there’s bad news and good news for this one.

The bad news is you just had a car accident, we hope you’re okay!

The good news is, you paid your auto insurance bill on time and it doesn’t affect your extended warranty at all.

Your auto insurance will cover any damages that occurred to the vehicle as a result of the accident, unless the cost of the repairs is more than what the vehicle is currently worth.

In this instance the vehicle will be considered “totaled” or “a complete loss”.  Fortunately, you’re still not out of luck warranty-wise if this is the case.

What If My Warranty After A Car Accident If My Vehicle Is Totaled?

If your car is totaled after a car accident, it will receive what’s called a “salvage title” and your warranty will no longer be valid.

You can call or write to your warranty company and let them know that your vehicle was wrecked and you’ll be able to cancel the extended warranty and get a refund.

Your refund will be pro-rated, which means it will be based on two things:

  • How much time/miles you have left on the warranty
  • The amount of repairs the warranty has paid for so far

From this information, your refund amount is calculated.

What Happens To My Warranty After A Car Accident If It’s Not Totaled But I Want To Sell It?

All in all, the good news is that you have several options regarding your warranty after a car accident. You can either transfer the warranty to the vehicle’s new owner or you can just cancel it and receive a refund.

Related posts: