Car Extended Warranties

Typically offered by dealerships, extended warranties are a financial bet that your car won’t require significant repairs beyond the manufacturer warranty. They can be purchased at the time of purchase or at a later date. Oftentimes, the cost can be rolled into your vehicle financing.

Investing in an extended warranty may pay for itself in a few years if it covers major repairs. It also increases a car’s resale value.
Price

When shopping for an extended car warranty, be sure to do your homework. Compare prices from different providers, and look for coverage details such as deductibles and the number of approved repair shops. Also consider whether the policy will transfer to a new owner in case you sell your vehicle. Car dealerships will often try to pressure you into purchasing a warranty at the time of purchase, but you are not required to buy one at that point.

If you’re buying your warranty at the dealer, the cost will probably be rolled into your auto loan. While this may seem convenient, it will increase your total cost because you’ll be paying interest on the extended warranty. Choosing a provider that offers a variety of coverage plans and allows you to make monthly payments can help keep the cost down. You can also shop for warranties that offer a lower price if you opt for a less comprehensive plan.
Coverage

Many manufacturers and third-party warranty providers offer car extended warranties, but it is important to understand the coverage you’re getting. Some plans cover everything except for cosmetics and wear-and-tear items, while others only cover specific components. The best way to determine what you’re getting for your money is to research the company’s reputation and compare prices. Some extended warranty companies also provide additional benefits like roadside assistance, trip-interruption coverage and multimedia software updates.

You’ll also want to know how the warranty works if it has a deductible and whether it applies only to repairs made in-house or at a certified repair shop. Some extended warranties may also exclude certain parts of the vehicle, such as air conditioning systems and emissions components. Other restrictions might include service requirements, towing charges and a waiting period before coverage kicks in. It’s also a good idea to keep receipts of maintenance and other services, and to follow the manufacturer recommendations outlined in the contract.
Expiration date

A car extended warranty is a plan that covers the cost of repair or replacement parts after a manufacturer’s warranty expires. Also known as a vehicle service contract, these plans can be purchased from a variety of third-party providers. They vary in terms, including coverage periods, kilometer limits and which repair shops are approved. You can check whether your car is covered by an extended warranty by looking at the paperwork that came with your purchase or calling the dealership.

Extended warranties are a great option for drivers who want peace of mind. Once a manufacturer’s warranty expires, you become responsible for any mechanical or electrical breakdowns. A warranty can help cover the cost of these repairs, allowing you to budget for auto maintenance. In addition, you can cancel a car protection plan within 30 days, and prorated refunds are available. However, it is important to keep in mind that these plans are not a substitute for routine maintenance.
Requirements

While extended warranties may not be the best option for everyone, millions of car shoppers swear by them. The key is to know what you’re getting into and to compare prices. Then you can make an informed decision about whether a warranty is right for your situation.

Some extended warranties offer more comprehensive coverage than others. For example, a bumper-to-bumper warranty typically covers most components of the vehicle, while a basic powertrain plan usually includes only the engine and transmission. The latter is a good option for high-mileage cars.

A good extended warranty company will work closely with the manufacturer and be transparent about their terms and conditions. This is a sign of integrity and will save you money in the long run. However, the warranty market is rife with scams. So do your homework, watch out for auto warranty scams and choose a reputable company. You will be glad you did.