Auto Aftermarket Insurance - What Is It And What Is Covered?

Auto aftermarket insurance is a type of insurance policy that is provided my vehicle manufacturers, to provide insurance cover for a wide range of mishaps that may occur with your new vehicle.

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Auto aftermarket insurance is often referred to as add-on vehicle warranty insurance. All new cars come with a manufacturers warranty, but when that expires, automotive aftermarket insurance can kick in, and provide you with cover for repairs that you would otherwise have to pay for.

The warranty your receive from your new car dealer will generally last for a specified number of months or miles, whichever is reached sooner. Many people like the idea of continued coverage, certainly in the early years of their new car ownership. Large bills are always an unwelcome surprise, and auto aftermarket insurance can remove the worry of this.

Types Of Auto Aftermarket Insurance

There are generally two types of aftermarket auto insurance that you can take out with your new car. One is directly from the car manufacturer, who will provide an extended warranty, offering continued coverage when the original warranty insurance warranty expires.

This type if insurance will generally be offered to your through your authorized dealer that you purchase your vehicle from. It usually provides the same, or a similar level of cover that the original warranty offered when the car was new. The possible downside of this type of auto aftermarket insurance is that you are generally tied to an approved dealer when you want to take your car for repairs.

The second type of aftermarket auto warranties are provided by a third party insurer known as auto aftermarket companies. These automotive aftermarket insurance services can usually offer a wider range of aftermarket warranties with more diversity in the levels of cover, and your ability to decide where to take your car for repairs if required. Many aftermarket auto warranties allow you to take your car to a certified repairer, but some still insist on using a dealer.

When you have a problem with your vehicle, the repair company will need to get authorization from the auto aftermarket insurance provider before work can commence. When taking out the insurance, it's always important to check the payment policy. Will the warranty provider pay the repairer direct, or will you have to pay and claim the balance back from the insurance company?

Which Is Best?

There is really no best or worst option here, it depends on your research, and which company you prefer to do business with. There is little doubt that many people seem to trust the manufacturer more than aftermarket warranty providers. There are such a high number of aftermarket providers, that it is not always easy to decide which policy works best for you. That said, the obvious mistrust and fear among potential warranty buyers does allow the dealers to take advantage of your concern, and SOME will.

What About Price?

There is little doubt that many dealer based aftermarket warranties are highly priced, and using an aftermarket company can offer you massive savings for a comparable level of cover.  There may be an option to get an auto insurance discounters firm to do the reasearch for you. They may not be able to access the dealer based policies, but may well be able to research the aftermarket automotive insurers, saving you a huge amount of time and effort. It is unlikely that you will find dirt cheap car insurance for your aftermarket policy.

We hope that this overview on automotive aftermarket insurance has been helpful. This type of cover can really offer piece of mind, allowing you a number of years of worry free motoring. When buying a new car you should always consider this type of cover, and compare the dealer quote and the non-dealer auto aftermarket insurance services.