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Are Extended Warranties Transferrable?

The true cost of owning a car extends far beyond the sticker price, regardless of whether it's a new model or a used one. Avoiding unplanned and costly breakdowns in the future is easier when you know the cost of your vehicle's essential maintenance and repairs.

In addition to avoiding costly out-of-pocket repairs caused by unexpected breakdowns and general wear and tear damage, buying a vehicle protection plan (often called an extended warranty) can also assist you in reducing maintenance costs. You might wonder if you can transfer the warranty if you want to sell your car before the duration of the vehicle service contract (VSC) has expired.

You can prepare for both your overall ownership of the vehicle and its eventual sale by understanding this process and how to transfer the extended warranty of the vehicle.

What is the difference between an extended car warranty and a factory warranty?

Your car, truck, or SUV's factory warranty comes directly from its manufacturer when you buy it from a dealership. It is sometimes called a 'manufacturer's warranty'. By providing this protection, the vehicle will be protected from costly future repairs caused by unexpected breakdowns or factory defects. Often, these are considered "bumper-to-bumper warranties," which cover the entire vehicle and all its major components such as your brakes, battery, tires and engine. Although most factory warranties help to protect you and your vehicle, they will not last forever, as they usually last for three to five years.

Vehicle service contracts, also known as extended auto warranties, are like extensions of factory warranties. By protecting your vehicle from unexpected breakdowns and general wear and tear damage, you can avoid unwelcome repairs. A vehicle protection plan, however, is normally purchased after or just before the end of your factory warranty coverage. This is unlike a factory warranty, which is automatically included with your purchase.

When you purchase extended coverage, you can avoid having to pay out-of-pocket expenses for any repairs that may be required throughout the vehicle's lifespan. Normally, auto insurance policies will only cover your vehicle in the event of an accident, theft, total loss or inclement weather.

A service contract covers breakdowns caused by general wear and tear or factory defects as well as any other repairs. Unlike mechanical breakdown insurance (MBI) where, in the event of a mechanical breakdown, only the essentials of the vehicle will be covered.

What if an owner wishes to transfer the service contract of a vehicle to another?

As with most contracts, a vehicle service contract is for a set period of time. It is possible, however, to transfer ownership of a vehicle that has a VSC to the new owner if you are planning to sell that vehicle. If you transfer the coverage, you won't have to pay for the remaining period of the contract, and the next owner will be able to keep the car protected. If you sell a car that a VSC currently covers, you can offer the protection plan coverage as an additional benefit.

How to Transfer a Total Auto Protect Vehicle Service Contract between Owners:

With a Total Auto Protect vehicle protection plan, you can transfer the contract between yourself and the next owner if you decide to sell your car. The process can be started by requesting a transfer through our customer service department. Vehicle service contracts from Total Auto Protect must be transferred within 30 days from when the car was sold and is subject to a $100 transfer fee. All Total Auto Protect coverage plans can be transferred directly to the new owner of the vehicle.

Our final thoughts about transferring your extended car warranty

To conclude, it is highly safe to assume a car's warranty will transfer smoothly with a change of ownership. It is possible for a contract to be voided if policy terms are not adhered to. By transferring an extended warranty you should expect some administrative charges and fees. Please be sure to have all the documented maintenance and service history of the vehicle before attempting to transfer the policy,

In many cases you will need to complete the transference application through whatever extended warranty company you have. Some companies might also require a notarized document proving the vehicles' sale. Make sure you read the fine print of your contract and complete the transfer process well before your thirty-day window closes in order to determine whether your warranty can be transferred. Almost every contract contains a transferability clause that specifies the terms under which the contract can be transferred.

Should the new owner decide not to maintain your coverage, you may be entitled to a large refund if you cancel your policy within a reasonable time frame.


Are you looking for a reliable extended warranty company to transfer to?

To help you get started, we're giving you a 30% discount for just requesting a quote for a limited time. Our plans are available online, so you don't have to make a phone call, and you may find they are significantly cheaper than what you're paying right now. Take advantage of your free quote today to avoid having to pay for expensive car repairs in the future.

Some extended warranty companies do not offer transfer in's or out's, but Total Auto Protect is different. By being a direct warranty provider, we are able to offer lower prices than our competitors, which gives us several advantages. Our prices aren't set by another company.

As a direct warranty provider, you'll never experience poor service from us. What else would explain our high ratings on TrustPilot, Consumer Affairs, Top-10 Auto Warranties and Best Company? In spite of the fact that there are a handful of other extended warranty companies out there, we know we're the best and would appreciate the opportunity to prove it to you.


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