Insurance Coverage & Warranties (Questions to Ask (Is there a…
Insurance Coverage & Warranties
Types of Insurance
About 12% of premium, pays for damage caused by vandalism, hailstorms, floods, theft, etc.
Covers medical payments for driver and passengers injured in an accident
Up to 30% of premium, pays for the physical damage to your car as a result of an accident
Pays a specific amount per day to rent a car while yours is being fixed, covers towing and labour
40-50% of premium, covers bodily-injury and property damage (ex, to another person's vehicle)
How Rates Are Set
Age, gender, Marital status, personal habits (ex, smoking), type and frequency of vehicle (ex, commuting)
Often classified as postal code, rural locations usually have lower rates whereas urban locations usually have higher rates
Accident with death, bodily injury, or property damage may trigger a surcharge on premium for three years, the number and kind of moving violations (and total of associated points), the number of years insured with the company
Damage repair, and theft record of type and model of car, age of car.
Warranty of merchantability, a product will do what it is designed to do. Warranty of fitness for particular purpose, a product will do as the seller promises it will do. Always in effect unless the product is sold "As-Is" or the seller provides in writing that there is no warranty
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
No warranty, no expressed or implied warranty. If you buy a car and have problems with it, too must pay for any repairs yourself. Some provinces do not permit "As-Is" sales on used cars
Manufacturer's warranty can sometimes be transferred to the new owner of the car, there may be a fee for the transfer process
Questions to Ask
Is there a deductible and, if so, how much?
Are repairs and services performed at locations other than the dealership?
Is the vehicle likely to need repairs and, if so, how much would that cost?
Does the contract cover incidental expenses such as towing?
Does the warranty already cover the same repairs?
Is there a cancellation or refund policy and, if so, how much?
Which repairs does the contract cover?
Is the dealer or company offering the service reputable?
What is the cost?
Am I able to purchase the service contract at a later date?