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CarGuard: Exclusionary VS. Stated Coverage

  

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There are only two types of policies; Exclusionary Coverage and Stated Coverage. 

Sorry to burst your bubble, but “Bumper to Bumper” is not a type of Extended Warranty.  It is an expression used by Dealerships and Sales personnel.  The term “Bumper to Bumper” is geared toward creating the illusion that all items from the front to the rear bumper are covered.  In reality, the term is used to describe Exclusionary as well as Stated Coverage. It gives no actual insight into the level of coverage that a policy offers.   

So, back to the two types of coverage: Exclusionary and Stated.

Exclusionary Coverage is absolutely the very best coverage offered.  It will cover every single mechanical item on the vehicle, excluding only normal maintenance or wear-and-tear items.  Typically excluded items are oil changes, light bulbs, tires, brake pads (not braking system).  All of these items are designed by the vehicle to wear out.  Therefore, they are not covered. An exclusionary policy will have a list of “excluded items.” These are the only things NOT covered through the policy.  All items not designed to wear out (computer systems, sensors, electronics, engine, transmission, steering system, etc.) are covered. 

Stated Coverage works entirely in the opposite manner of Exclusionary.  Instead of listing what items are excluded, Stated Coverage... states what is covered.  The more mechanical items stated, the better the coverage.  Stated coverage is a very broad term.  It can be as comprehensive as three hundred stated components, or as few as one stated item.  

The important thing is to look at what you’re buying.  Get Exclusionary Coverage if you can.  If your car doesn’t qualify for it, that’s ok.  Stated coverage can be excellent if you know what to look for.  Remember, not all coverage is created equal, so ask a CarGuard Representative what coverage is best for your car.