As used cars very often pose problems, it is better that you pay an insurance premium and get the property insured. Also understanding the warranty terms and conditions better, you can use the vehicle as it has been recommended to. If you qualify for the five star warranty plans, do remember the following things. Though you are given a date that is mentioned in the policy certificate, if you happen to damage the vehicle permanently, your warranty expires and remember that this policy cannot be renewed.

Also if you keep making claims repeatedly and in case the total cost of your claims sums up to the purchase cost of the car, then your warranty is cancelled. Thus it is better that you go through the terms before you sign on the dotted line. However you have the option of cancelling the policy and in case you have paid the money, they return you the insurance premium on cancellation. But remember to cancel within 2 weeks from purchase date of the policy.

Also you need to remember that this warranty plan does not cover damages due to wear and tear, accidents, fire, frost, corrosion, and lack of lubricants or application of incorrect lubricants. Also if any foreign particles have entered into the fuel, the insurance policy will not cover the same. Thus it is better that you handle used cars carefully.