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August 22, 2008, Newsletter Issue #156: Understanding "Bumper-to-Bumper" and Exclusionary Warranties
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Tip of the Week
When you shop around for an extended warranty, make sure you are comparing true bumper-to-bumper exclusionary coverage. Exclusionary policies cover everything—and that means everything—on the car (excluding certain items that are specifically listed in the warranty). Common exclusions include things such as:
• Moldings • Weather-stripping • Maintenance
In other words, the types of things you wouldn't really expect to be covered anyway. Unfortunately, many of the less reputable warranty companies sell so-called "bumper-to-bumper" warranties that exclude major components and systems. Make sure you read the fine print on your warranty or you may end up being skimped on your coverage.
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