Quality service contracts prove valuable when unforeseen automobile breakdowns leave drivers with repair bills that tear holes through their budgets. Just as a health insurance provider allows a policy-holder to pay monthly fees in return for coverage against unmanageable hospital bills; auto warranty companies let drivers make small investments that will ensure that they won’t be held responsible for potentially crippling service charges.

Sorting through your options

Since plans vary in all sorts of ways, drivers tend to have difficulty choosing one best-suited to their needs. If you’re intent on protecting yourself from catastrophic repair bills, you need a comprehensive auto warranty; and to find the best deal, you need the ability to compare plans.

Almost no provider agrees to pay for “wear-related” expenses and vehicle maintenance costs; however, a few may also force you to pay for diagnostic tests which are crucial for determining the cause of a problem. How can you determine what auto warranty companies will and won’t pay for? You have two choices: pour over the contractual language of each plan, or rely on the courteous, knowledgeable experts at CARCHEX.

The selection process made easy

Instead of trying to find a comprehensive auto warranty on your own, work with a trustworthy, third-party provider, such as CARCHEX. Fully-accredited by the Better Business Bureau, CARCHEX is a reliable source for affordable plans and a wellspring of valuable information.

The vast majority of the time, drivers benefit from extended warranty insurance plans that prevent them from having to pay when their vehicles break down. On the other hand, although most consumers don’t have the financial resources to cover unexpected problems, some do. If you fit the following description, you may not need to get a service contract.

Who can afford to go it alone?

If you have the financial means to replace your automobile every two to three years, extended warranty insurance may not make a lot of sense. Extended service contracts tend to help people who must rely on their vehicles over a period of several years. If you are fortunate enough to have the resources to frequently buy a new car, an extended warranty may not be worth the cost.

Who needs coverage?

In a perfect world, we’d all have the money to buy new cars and trucks whenever we grow tired of our current vehicle. In the real world, most of us must learn to live with what we have. If you need your vehicle to come through for at least five to six years, an extended service contract can really come in handy.

To find the most reliable, affordable options, compare auto warranties at CARCHEX.com. Don’t just take the first plan that comes your way; trust the experts at CARCHEX to ensure that you’re getting complete coverage that won’t let you down.

In a previous post, we discussed how the E15 Fuel waiver from the EPA could spell disaster for claims on auto warranties. There are new developments, and some just came out today.

In a previous post, we discussed how the E15 Fuel waiver from the EPA could spell disaster for claims on auto warranties. Also, it lowers the fuel efficiency and can cause premature engine failure. There is an update on this issue that just came out today.

HR 3199: Dig Deeper on E15′s Effects Engines (and Car Warranties)

HR 3199 is a bill being spearheaded by Rep. Jim Sensenbrenner (R-WI) that would make the EPA look for deeper independent scientific studies on how E15 affects engines, and by proxy, car warranties. Especially in the automotive industry, there is a lot of concern that the EPA did cursory testing on E15 before approving it for the market. One thing to take note of: 15% ethanol is 50% higher in content than all engine manufacturer’s recommendations.

While being progressive about the use of alternate and more eco-friendly fuels is commendable, we cannot rush into these things half-cocked. There are many risks, some both mechanical and environmental, with using this fuel in vehicles that are not made to handle it. Components with older plastic, rubber and some other synthetics deteriorate quickly when exposed to ethanol, so the release of toxins from these materials is also increased. Then there are the toxins that are released when your components get burned due to a higher engine temperature from using ethanol. With lawnmowers, off-road vehicles and motorcycles, and small gas-powered engines, an actual fire is completely possible.

Model Year Allowances Cannot Satisfy Warranty Compliance

The EPA’s dividing line on model years is 2001 and newer are approved for E15, and anything older should not use it. The decision to allow the 2001-2006 model years to use E15 is highly contested, as E10 alone can lead to premature failure in engines older than 1998, and many mechanics would say that this also happens to model years that technically are in the 2001-2006 age range.

Taking it a step further, E10 got its waiver over 30 years ago, yet no commercially sold vehicle could use it until 1998, and even that is iffy. Ultimately, it is best to stick with the owner’s manual for your vehicle along with your auto warranty. These two documents are all you need to know about what gas to use to stay in warranty, regardless of the EPA. Just because the EPA approves, it does not mean that your warranty provider will.

Detailed Info on the E15 Label and Vehicle Warranty Compliance

First of all, virtually no vehicle warranty provider has specific clauses about this fuel—it’s too new. Instead, the applicable provisions fall under a variety of categories and for different reasons: “undue wear and tear,” and ethanol provisions in some warranties immediately come to mind.

Before you get too panicky, you can rest assured that E15 is not on the market yet, so there is no current chance of misfueling. When and if that does happen, the EPA has designed a distinctive fuel pump label for 15% alcohol. It specifically states that it is only to be used for model year 2001 passenger vehicles or later, flex-fuel vehicles, and using it in anything else can damage your vehicle and is prohibited by law. Make no mistake, when warranties get involved, the E15 fuel pump label will be a strong indicator who is at fault if you use it wrongly.

In the end, to keep your auto warranties in compliance, you should avoid E15 even if you have a 2011 or 2012 model.

It's a familiar sight, auto dealerships selling cars from different manufacturers. Little do most people realize, reorganizations in these businesses can complicate your new and extended auto warranty claims process.

It’s a familiar sight, auto dealerships selling cars from different manufacturers. Little do most people realize, reorganizations in these businesses can complicate your new and extended auto warranty claims process in unexpected ways. Dave Cass in Galesburg, IL learned this lesson the hard way just recently.

Warranty Claims When Dealerships Divorce Manufacturers

Galesburg Honda Toyota in Galesburg, IL split manufacturers last September and became simply Galesburg Toyota. The Honda portion moved to West Burlington, Iowa and became West Burlington Honda—both owned by the same franchiser. Some manufacturers do not like sharing the same dealership, so the story goes, and this was the cause of the split. Most people did not realize that this happened, or what that meant to their warranty claims.

Mr. Cass bought a Honda from this dealership back in 2009. A few days ago, he tried to get a warranty-covered repair done at the dealership based on a notice he received from Honda about a safety recall. He soon discovered that this dealership was no longer under the Honda umbrella.

How This Change Aggravated Dave’s Warranty Approval Process

Naturally, Mr. Cass could not have the repair done at Galesburg Toyota under warranty. The problem for the Honda-owning residents of Galesburg is that all of the nearest Honda dealerships are at least 40 miles away. West Burlington Honda is about 42 miles away, Bob Lindsay Honda in Peoria is a little over 42 miles away, Zimmerman Honda in Rock Island is about 40 miles away, and Lujack Honda in Davenport, Iowa is about 43 miles away.

Jeff Everhart, Galesburg Toyota’ General Manager mentioned that customers should contact their Galesburg salesperson for help resolving this problem. He commented that the change of venue was Honda’s decision, and his sales staff is trying to accommodate their customers. He mentioned that they will even drive the customer’s car to West Burlington in some cases.

For CARCHEX and Dave Cass, the Fix is Not Worth the Headache

Dave Cass, naturally, is not satisfied with this arrangement. He declared that he would never buy a Honda again unless he could get it from a local dealer. He also wrote Honda and gave them a piece of his mind.

We at CARCHEX agree with Mr. Cass, that Galesburg Toyota’s customer assistance is not enough to truly fix the problem. Of course, that problem is not in the dealership’s hands. What we believe where Dave Cass is incorrect is in his vow about buying Hondas and in writing a complaint letter to Honda. All too often, these measures do not benefit the consumer in any real way. Instead, we suggest that he get a CARCHEX extended car warranty so he can get his Honda—or any other vehicles—repaired by any qualified technician, not just ones employed by the manufacturer. Whether his manufacturer warranty or an extended auto warranty was in effect, having one of our warranty plans would have prevented a lot of hassle for him.

On the surface, the E15 fuel waiver can be viewed as a victory for the environmentally conscious consumers. However, this victory also spells disaster for nearly every auto warranty claim out there.

The Environmental Protection Agency has managed to get their recommendation to increase ethanol content in gasoline from 10% to 15%. On the surface, this can be viewed as a victory for the environmentally conscious consumers. However, this victory also spells disaster for nearly every auto warranty claim out there. We at CARCHEX are not opposed to being environmentally conscious, but there are several problems with this particular measure.

Why Ethanol Gas Voids Car Warranties

Ethanol gas, simply put, can put your vehicle under excessive wear and tear. This is especially true if you have a car older than the 2000 year. The fuel filters, piston rings and valves were not made with consideration of ethanol being in the system in older cars. Ethanol is highly corrosive to these parts, and can damage them in a fairly short amount of time. Also, ethanol has a shelf life of only two weeks, so unless you drive enough to keep burning it off, you can face even more problems.

Unfortunately, it is not as easy as choosing not to use ethanol at the gas pump. According to pure-gas.org, there are only slightly over 4000 gas stations in the U.S. who offer pure gasoline, and many of these are concentrated in oil producing states and rural areas. It’s not that the prevalence of E10 gas stations is mandatory—according to the EPA, the endorsement of E10 fuel was merely a suggestion.

Vehicle Warranties and the E15 Endorsement

Eventually, auto manufacturers were able to produce engine components that could cope with the E10 fuel. Now they are up in arms about the endorsement of 15% ethanol fuel. The concern is that the E15 endorsement by the EPA will make it as prevalent as the E10 fuel is. Of course, most people will want to take the “environmentally friendly” alternatives, and that ultimately means there will be a spike in engine breakdowns. Incidentally, ethanol decreases gas mileage in the short term, which contradicts the idea that it is more eco-friendly.

One thing is certain—vehicle warranties, even if the claims are honored, will not be able to adequately address the problems of E15 fuel. Leaving the question of car warranty qualifications alone for a second, the manufacturers simply have not been producing components that are capable of handling the increased abuse that E15 fuel will put your engine through. Until such a time as they manufacture these components, engine problems from this fuel will increase, and unfortunately, it cannot be covered by most warranties.

Take it from us, even if E15 helps save the environment, it definitely spells trouble for your cars and your auto warranties. Avoid it as much as you can to protect your warranty.