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In late 2019, Covid began breeding and slowly spreading. By then, its effects were very mild on the
global economy. Gradually, things began skyrocketing and by mid-2020, the entire globe was under
attack from this deadly virus. The pandemic went ballistic and hit hard the economy of most countries.
The effects made people’s livelihood very tough, companies cut down employees, and some companies
perhaps toppled due to financial instability. The disaster continued for a while until late 2021 when
vaccine breakthroughs came in to save the day.
Currently, the economy is almost fully revived in most developed states, while some countries still
struggle. Here in the U.S and Canada, the economy as of now is quite stable though not by full capacity.
Covid 19 is slowly fading off our planet and things are now getting back to where they used to be. You
have to understand that before then, not a single company/organization was excluded from the
rampage. Extended car warranties were also affected. Due to tough economical momenta, extended
warranty plans got affected.
The price of plans went up obviously and some extended warranty providers perhaps reduced the
number of plans offered. But now the system is up and running. Guys are buying cars every day and the
need for extended warranties is gradually rising. The question remains, does anything change with your
car's extended warranty plans? This publication will help you understand whether the decreasing Covid
19 rate will impact the extended warranty rates.
Extended warranty plans
Extended warranty plans are agreements between a vehicle owner and a provider stating protection
from expenses that arise due to electrical and mechanical damage to the car. They are usually
purchased either in car dealerships or by third-party providers. Once the manufacturer’s warranty
expires, your car is left vulnerable to faults and breakdowns and you are the bearer of all expenses
incurred in repairs. It will be tough of course since there are some parts in a car you never want to
repairs. We are talking about the powertrain parts and the drivetrain ones. They are really expensive to
repair and replace.
At the peak of the Covid 19 invasion, most third-party providers were having a hard time. Income
generated at that particular period was very low. The reason is, the government has set up measures
that were to curb the spread of the virus. That included full lockdowns and partial curfews. This
restriction prohibited people from moving from one place to another as they were advised to work from
home. Therefore, there were zero to fewer vehicles on the roads.
You have to understand that extended warranty providers don’t only survive by initially purchasing an
extended warranty. The frequent deductibles also contribute financially. Since there were no cars on the
roads, just like insurance companies, extended warranty providers plunged into losses. Thankfully, the
entry of the Covid 19 vaccine came in and there was a sigh of relief. The economy began steadily
growing. Currently, Covid 19 is still here with us. With mutations happening all over the globe, new
variants are reportedly coming up. Hopes are high that eventually, we shall beat the virus. But as of
now, its infection rate has dropped and is slowly fading away.
Here is what to expect as Covid 19 is dropping.
1. Increased pricing.
Expect this with most extended warranty providers. The extended protection plans will have different
pricing from the one before Covid 19 pandemic. Remember, most businesses either small or big were
affected and the effect was very harsh to some. Plunging in losses and going for loans to meet expenses
remained to be the remedy that would put them in existence. Since most car owners were on
lockdowns and so on, the money collected from deductibles and purchases of extended warranty plans
was very low.
As the pandemic is going low, the economy is coming up and soon the extended warranty plans prices
are expected to be high. This is to cushion extended warranty providers and ensure they are back on
track. Before the pandemic, an extended protection plan was estimated to start from $1,000 and some
providers did even low that that. Car owners need to brace and be ready to spend a little more on
extended warranty plans.
2. Extension of plans.
The entire 2020 was very stagnant as things were not moving. The pandemic was hard on us and the
lockdown thing was the only remedy that could prevent further spreading at that time. By then, there
were car owners who had existing contracts that were active and or soon to expire. But now we are
nearing the end of the tunnel. Covid 19 is going away. Most customers are expected to get extensions
for their plans which were affected by the pandemic.
Conclusion
If you are an extended warranty owner, pro-Covid 19 times is expected to be a tuff moment once again.
Covid 19 has not been eradicated still. However, where we are headed too seems positive though. After
all you've got to look after your asset, and one way is by getting an extended warranty. To those who
are shopping for their next car, do not fear getting an extended warranty. It helps big by protecting you
from unforeseen car breakdowns repair expenses. We are an A+ accredited business and offer extended
warranties with customer-friendly prices. Give us a call now +1-866-660-6444 or chat with us via email
at info@a-protectwarranty.com.