When your factory car warranty ends, you can usually add an extended warranty, otherwise called mechanical breakdown insurance. Extended warranties can come from the vehicle manufacturer or third parties, but both options cover mechanical failures and possible defects, protecting you from the cost of future repair bills.
Vehicles with a factory warranty from the car dealer and some extended warranties may also be covered under California Lemon Law protections. If there’s a defect with a qualifying car that cannot be repaired, you may be due compensation from the manufacturer or dealer.
Under California Lemon Law, you have legal recourse if you are driving an unrepairable car that’s covered by a warranty, but there are stipulations and guidelines that the vehicle must fall under. With so many confusing regulations and rules, it’s best to have a qualified lemon law attorney on your side, working with you to file a claim. The lawyer you choose could make the difference between you getting the maximum amount of compensation or nothing but a lemon car.
If your vehicle has an unrepairable defect, call our California Lemon Law Attorney to learn more about your rights. You don’t need to fight a battle against the manufacturer alone if your defective vehicle is under warranty. We’ve secured millions in compensation for our clients and are ready to work with you. Get your free lemon law consultation to start the process.
In this guide, we cover the basics of mechanical breakdown insurance and extended warranties. We explain how the lemon law works in conjunction with your vehicle service contract and show you what to look for with extended warranties.nce between you getting the maximum amount of compensation or nothing but a lemon car.
Extended warranties are very similar to factory warranties, except they are meant for older cars. Unlike the factory warranty, mechanical breakdown insurance and vehicle service contracts can cover a variety of components, often not the entire car. They also have varying terms, ensuring that the driver gets the amount of coverage needed.
The extended car warranty offers protection beyond the manufacturer’s warranty. It kicks in after the manufacturer’s warranty expires and covers a range of components, depending on what plan you choose. A variety of extended car warranty companies are available, offering a wide range of options.
Some reasons to choose an extended car warranty include:
The biggest benefit of extended auto warranties is that you may not have to pay out of pocket for the covered repairs unless there’s a deductible involved. In some cases, dealerships get paid for warranty work directly, while other plans have the customer pay the repair facility and then receive the reimbursement. Check the terms with your chosen car warranty company.
California lemon law protects consumers when a vehicle has defects that should be worked out through the warranty but haven't been. It states that manufacturers must repair defects in a reasonable amount of time or compensate the driver. Because of these protections, consumers aren't stuck driving defective vehicles on the road and are offered something to reimburse their expenses.
A lemon vehicle is one that has unrepairable defects which can’t be fixed after a reasonable number of attempts. The claims must occur within the first 18 months or 18,000 miles of ownership (whichever comes first). To be eligible, vehicle defects must substantially impair its use, safety, or value.
For a California lemon law claim to be valid, the car must have been covered under a warranty. In most cases, it’s the manufacturer’s warranty on a new vehicle that’s in place, but it can also be a Certified Pre-Owned warranty or extended warranty coverage in some circumstances, depending on what types of issues are occurring.
While the factory warranty and some extended warranties cover any defect or failure of the vehicle during its term, they don't directly provide compensation for a lemon car. However, they do help weed out any problems covered in those early months of ownership. The original warranty or coverage from a third-party company alleviates the chances of surprise repair bills, but it does nothing to prevent mechanical failure from occurring.
Navigating the logistics of a defective vehicle can be overwhelming if you aren't familiar with the laws. If you are struggling with extended auto warranties and defects, it's best to contact a qualified attorney for help. Yet, the holdup always comes down to – how much does a lemon law attorney cost?Most lawyers charge between $400 and $600 per hour, but every California lemon law attorney sets their own rates for services. The good news is that our experienced firm doesn’t believe in getting paid until you do. We also charge nothing for the initial lemon law consultation, so you don’t have to worry about paying anything upfront.
There are many types of complaints covered by Lemon law. In fact, any defect that substantially impairs the vehicle’s use, value or safety is covered. Therefore, engine failure is treated the same as a fuel system malfunction or glitches in the electrical systems. Lemon law also covers other expenses associated with the defect, such as towing bills or if a rental car was needed. When you file a lemon law claim with an experienced attorney, all of these costs can be recouped in some circumstances.
California is the most expensive state for car repairs across the country. There’s no question that drivers spend a lot more on surprise repairs in this state, especially with all the time spent on the road. With more than 386,000 miles of roadway in California, the cars tend to have higher than average mileage on them, leading to more wear and tear, but an extended car warranty can help alleviate some of the financial burdens.
With the right extended car warranty, Californians can keep their vehicle longer, getting more use of it so it provides a better value. Some extended warranty plans are also transferable, making it a good selling feature when it comes time to get top dollar for it. Research the extended warranty companies carefully before you purchase coverage to ensure you get what you need. You can set up new coverage before the factory warranty or powertrain warranty expires. Consider it an insurance policy against future breakdowns.
California has a Vehicle Service Contract Law known as the VSC Law. This state law requires vehicle service contract providers to be licensed through the California Department of Insurance (DOI) and comply with regulations that ensure consumer protection.
For starters, all providers must offer consumers detailed information regarding all terms and conditions of the contract before it’s purchased. This information may include the covered components, deductibles, all exclusions, claim procedures, limitations and cancellation rights. In California, the consumer has the right to cancel the VSC within a set timeframe after the purchase, typically between ten and thirty days. During this time, the customer can cancel and get a full refund of the purchase.
Additionally, a California Car Buyer’s Bill of Rights requires all licensed dealers to provide a detailed report of financial items, such as insurance and warranties. Through these guidelines, the dealer cannot misrepresent the benefits or terms of the warranty. The dealer is also not allowed to pressure the consumer into purchasing any warranty. The California Department of Motor Vehicles (DMV) is responsible for oversight and enforcing compliance. Additionally, the California DMV can take its own legal action if these guidelines are violated.
If that wasn’t enough protection, the California Department of Consumer Affairs (DCA) gets involved with warranty disputes. Consumers can file a complaint through the DCA for warranty fraud, unfair warranty practices or the failure to honor warranty obligations.
If you believe that an extended warranty is a good protection and is a great supplement to the manufacturer warranty, you want to shop for the best provider, which differs depending on your needs. Here are a few considerations to think about:
Don’t rush the shopping process because it’s essential that you understand all the exclusions and limitations of the plan. Pay careful attention to the components that aren’t covered by the warranty and avoid doing anything, such as modifications, that may void your coverage.
Based on reviews from MarketWatch, mechanical breakdown insurance in California is best through Endurance. As a direct provider to the consumer and a hassle-free claims process, Endurance continues to earn a high customer satisfaction rate. There are also three-tier options available to California residents with several add-ons available, such as emissions coverage and lift kit protection.
Olive is another company that stands out for an extended vehicle warranty, due to its transparent plan options and reputation. Mechanical breakdown plans come in several levels, allowing you to choose what’s best for the vehicle’s needs and your budget.
A third option is Carchex, but these plans must be purchased through qualifying dealerships. With its A+ rating through the Better Business Bureau (BBB) and partnership with Kelley Blue Book (KBB), it might be a plan worth talking to the dealer about.
California supplies strict and very specific laws surrounding extended warranties. These laws regulate who is allowed to sell extended warranties, what the contracts look like and how they may be represented.
It’s essential to note that consumers can purchase either a vehicle service contract or mechanical breakdown insurance, but the two are very different. Starting with the VSC, prices aren’t regulated, but only a licensed car dealership can sell the plans. These plans offer a lot of customization and can be extensions of the original warranty or only cover a few components. Because they aren't an extended warranty, they aren't tied to the dealership in any way.
Mechanical breakdown insurance (MBI) is more similar to extended car warranty coverage, covering the costs of repairs from a breakdown caused by defects. These plans are regulated by the Department of Insurance Laws and can be purchased from licensed insurance companies, the provider itself, credit unions and banks. They are not offered by the dealership or manufacturer. For this reason, you may want to discuss your needs with your licensed insurance company while purchasing liability and comprehensive coverage.
To avoid being scammed or choosing an untrustworthy provider, consider these tips:
There's no choice available when it comes to new car warranties, but the same isn't true with the comprehensive coverage provided by mechanical breakdown insurance. As you evaluate the providers offering the best extended warranties, you need to give special consideration to your vehicle’s needs. As discussed briefly before, you wouldn’t want to choose powertrain-only coverage if you want the whole vehicle protected. In the same regard, paying for three years of protection may not make sense if you only plan to keep the vehicle for a short time.
It’s always our recommendation to discuss your needs with a licensed dealer or insurance agent who would be able to guide you better. You should also read through customer reviews to get a feel for how other car owners have been treated.
On average, the total cost for extended warranty protection may be around $3,000. The costs depend on the type of vehicle you drive, its mileage, the coverage protection you need and the length of the agreement.
Sometimes, you can finance the warranty cost to make it easier to afford. When purchasing a VSC through a dealer, the cost can often be rolled into the car’s monthly payments or purchase price. Mechanical breakdown insurance plans may also be financed, so it’s something to ask about.
The biggest question should be whether an extended warranty is right for you. If one trip to the repair shop would be detrimental to your financial standing, it may be best to put coverage in place. Otherwise, skipping the additional coverage could also be an option if you can afford to pay for the repairs out of pocket. Beyond that, if you drive a reliable car which is newer, the chances of an expensive repair bill are much lower, so it might not make sense to spend $3,000 on a plan you may never use.
The most significant factor is whether you can afford to pay for the future repairs of major components. If you can't, it's best to consider an extended warranty to alleviate possible repair costs.
Lemon law protections are available if a defect cannot be repaired. It allows you to get a replacement vehicle or cash reimbursement when your vehicle doesn’t provide the function it was supposed to. On the other hand, the extended warranty is going to protect you from normal mechanical breakdowns that occur over the life of a vehicle.
To get the most out of the vehicle service contracts or mechanical breakdown insurance, you should familiarize yourself with all the terms and conditions. It’s also vital to keep thorough records of the car’s maintenance and repair history because this documentation may be needed when filing a claim. You also want to use the additional benefits if they are available. Don’t forget that you may have roadside assistance protection, trip interruption coverage and rental car reimbursement as part of your plan.
Following the factory maintenance schedule is one of the most important things you can do for your vehicle. By getting regular oil changes and keeping up to date on service, you prevent mechanical breakdowns and headaches in the future.
We cannot stress enough how important it is to understand both your extended warranty coverage and California lemon laws. Both of these are going to provide you protection if your car has defects and you want to do everything possible to protect your precious investment.
If your car has an unrepairable defect, consult a lemon car lawyer in California today. Time is the enemy when it comes to filing a lemon law claim, so you don’t want to wait. Whether you are trying to determine if a lemon law claim is right for your situation or you are in the middle of the process, it’s good to have experts on your side. We can file the demand letter, guide you through arbitration, and help you negotiate. We will also go to court with you if needed. Our experienced team of lemon law professionals knows how to get compensation for problems of all severities. We’ve helped more than 5,000 other drivers get the resolution they needed and we are ready to help you next. Schedule your free lemon law consultation to see what you are entitled to.
When you work with our Lemon Law Attorney Practice in Beverly Hills, you never have to navigate the journey alone.
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