When your car’s warranty expires, it can be a little nerve-wracking. You know there are potential problems with the car, but you’re not sure what to do about them.
Should you get an extended warranty?
Here are some pros of car extended warranties to help you make your decision.
What is an Extended Warranty?
Companies often offer extended warranties for their products. These types of warranties are usually offered for about two years after the initial purchase date.
This can be a good way to protect your investment, as it covers any parts or labor needed to repair your product. Extended warranties can also include other types of coverage, such as accidental damage protection and an on-site service call.
Be sure to read the fine print of any extended warranty before you purchase it, as there may be exclusions or limits on what is covered.
Car Extended Warranty
A car extended warranty is an insurance policy on your vehicle and it acts as a safeguard against expensive, unforeseen repairs. Many feel that it’s worth the peace of mind to have one. Others view it as an unnecessary expense.
The average cost of an extended warranty is $1,200 to $2,000, but can be as high as $4,000 for some luxury vehicles. This cost varies depending on the make and model of your car, as well as the length of time that you want to extend your warranty coverage.
There are several factors to consider when deciding whether or not an extended warranty is right for you:
Think about how old your vehicle is.
If you’re driving a newer car, chances are that it’s still covered by the manufacturer’s warranty. In this case, you may not need an extended warranty.
On the other hand, if your car is a few years old and the original warranty has expired, an extended warranty can give you peace of mind knowing that you’re covered in case something goes wrong.
How much do you value your vehicle and how often do you drive it?
If your car is a daily driver, then you’re more likely to encounter expensive repairs than if it’s only used on the weekends. Also, consider whether or not you have the funds available to cover large repair costs without an extended warranty.
The Benefits of an Extended Warranty
One of the main benefits of an extended warranty is that it gives you peace of mind.
With a warranty in place, you don’t have to worry about unexpected car repairs or expensive repairs if your car does need work down the road. This can be particularly helpful for older cars and for those who like to travel long distances.
Another benefit of an extended warranty is that it can save you money in the long run. If you do have to make a claim on your warranty, you’ll likely get a discount on the repairs. In some cases, the warranty may even cover the entire cost of the repair.
An extended warranty gives you the flexibility to choose when and where you have the car repaired. Since you can choose your own mechanic, and oftentimes get repairs done at a discount, you don’t need to worry about trying to find someone who will do the work quickly or at a reasonable price.
The Types of Coverage Offered by Car Extended Warranty Companies
There are many different types of coverage offered by car extended warranty companies.
The most basic type of coverage is mechanical breakdown protection. This type of coverage can help pay for repairs to your engine, transmission, and other major components.
Another type of coverage offered by car extended warranty companies is called bumper-to-bumper coverage. This type of coverage can help pay for repairs to your car’s paint, upholstery, and other cosmetic damage.
In addition to the two types of coverage mentioned above, there are also many other add-ons that you can purchase from car extended warranty companies. These add-ons can help cover the cost of rental cars, towing, and even roadside assistance.
How to Choose the Right Extended Warranty for Your Car
How do you know which one is right for your car? Here are some tips on what to look out for and what to avoid when shopping around:
1. Make sure you understand the coverage.
The first thing you need to do is make sure you understand exactly what the extended warranty covers. Read the fine print carefully and ask questions if there’s anything you’re not sure about.
It’s also important to find out what’s not covered by the warranty, so you know what you’ll still have to pay for if something goes wrong.
2. Find out how long the coverage lasts.
Extended warranties come in different lengths of time, so you need to make sure you choose one that will cover your car for as long as you need it. In general, the longer the warranty, the better—but be sure to get something that will last for at least as long as you own your car.
3. Find out what extras are included.
Some warranties cover things like roadside assistance or even routine maintenance, which can save you a lot of money over time. It’s worth checking to see what else is included in the coverage before you make your final decision.
4. Shop around.
Don’t just go with the first warranty you find. Get quotes from several different companies and compare them side by side to make sure you’re getting the best deal.
5. Check the financial rating of the company.
Before you buy, make sure that the warranty company is reputable and able to pay out claims if needed. You can find this information easily online, or by calling your local Better Business Bureau or consumer protection agency.
An extended warranty can be a valuable investment for car owners. It gives you peace of mind in knowing that you’re covered if something goes wrong with your vehicle, and it can save you money in the long run.
