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Warranties and Insurance Coverage - Coggle Diagram
Warranties and Insurance Coverage
Types of Insurance Coverage
Medical
Covers medical payments for driver and passengers injured in accident
Rental Reimbursement
Pays a specific amount per day to rent a car while yours is being fixed
Towing and labor
Comprehensive (about 12% of premium)
Pays for damage caused by vandalism, hailstorms, floods, theft, etc.
Collision (up to 30% of premium)
Pays for the physical damage to your car as a result of an accident
Limited by deductible
Liability (40%-50% of premium)
Bodily-injury coverage
Property-damage coverage (e.g. to another person's car)
How Insurance Rates are Set
Personal Characteristics
Marital Status
Personal Habits (e.g., smoking)
Gender
Type and frequency of vehicle use (e.g., commuting)
Age
Vehicle Characteristics
Damage, repair, and theft record of type and model of car
Age of car
Geographic location (often classified by postal code)
Rural locations usually have lower rates; urban locations usually have higher rates
Warranties
Dealer Warranties
Offered and specifically written by the dealer
Terms and conditions can vary greatly
Useful to compare warranty terms on similar cars or negotiate warranty coverage
Unexpired manufacturer's Warranties
Manufacturer's warranty can sometimes be transferred to the new owner. There may be a fee for the transfer process
Implied Warranties
Warranty of merchant-ability - a product will do what it is designed to do
Warranty of fitness for a particular purpose - a product will do what the seller promises it will do.
Always in effect unless the product is sold as-is or the seller says in writing that there is no warranty
As-is (no warranty)
Some provinces do not permit "as-is" sales on used cars
If you buy a car and have problems with it, you must pay for any repairs yourself
No expressed or implied warranty
Before Deciding to Buy a Service Contract, Find out...
Whether repairs and service can be performed at locations other than at the dealership
Whether there is a deductible and, if so, how much?
Whether the contract covers incidental expenses such as towing
Whether the vehicle is likely to need repairs and, if so, the potential cost of repairs
Whether there is a cancellation or refund policy and, if so, the cost
Whether the warranty already covers the same repairs
Whether the dealer of company offering the service is reputable
Which repairs the contract covers
Whether you can purchase the service contract later
The cost