What is a pro-rata warranty?

What is a pro-rata warranty?

All Polymaster warranties are on a pro-rata basis. Under this warranty, if your product fails before the end of the warranty period, it is replaced at a cost that depends on the age of the item at the time of failure.  This is calculated by the following formula:              $ maximum liability = A x B/C


A = Original purchase price

B = No of years of the warranty period remaining

C = Total warranty period

For example: Tony purchases a tank for $2,000 and it comes with a 20-year warranty. It is now 15 years old and Tony would like to make a claim against his warranty.

Purchase price x number of years remaining / divided by warranty period

$2000 x 5 years divided by 20 = $500

Therefore, Tony has $500 allocated to repair or to replace the tank in the unlikelihood that something goes wrong.