Do You Need an Extended Car Warranty?

car warranty

For consumers, buying a car, whether new or used, is a big deal. They want reliability and protection. Most consumers are willing to spend more money in the name of caring for their cars. The majority of car brands offer at least a 36,000-mile, three-year factory warranty. It is even longer for some brands.

What happens when the manufacturer’s warranty expires? If you are planning to hold on to your car for a long time, you should sign up for an extended car warranty. The best car warranty covers the price of major replacements or repairs for a certain number of miles or years.

Not sure whether you should sign up for an extended car warranty? Here is all the information you need about the best extended car warranty to help you make an informed choice.

What an Extended Car Warranty Covers

An extended car warranty is a contract that covers auto repairs after the factory warranty has expired. There are different extended warranty plans, and each determines which items are covered. Also, what the policy will cover will vary with the type of warranty you choose and the provider you choose.

Note that most extended warranties do not cover routine maintenance items, such as oil changes, air filters, tires, and brake pads. These warranties do not also cover wear and tear. An extended car warranty acts as an insurance policy for your vehicle’s major parts.

Some extended warranty plans include extras such as trip interruption protection, roadside assistance, and towing services. Take time to research different extended car warranty providers to identify one that will meet your needs in terms of cost and service. It helps to read reviews about different providers, including CarShield reviews.

Pros of Buying an Extended Car Warranty

Flexible Packages to Choose From

Today, new vehicles come with new technologies you may not be aware of. The good thing about extended warranties is that they are flexible. You can now pick a policy that covers what you want. Some things are automatically covered, but you get to select add-ons you want. People with used cars that can break down easily benefit the most from extended warranties.

Helps You Save on Repairs

Nobody wants their car to break down. However, considering the present times, you can encounter situations where you face a major issue in your car. Having an extended warranty can help you save a lot of money you would have otherwise spent if your car was not under warranty. This does not just apply to used cars. There have been cases where people buy new cars that roll out of the manufacturer with defective units.

You Have Peace of Mind

According to research, many Americans do not have savings in the bank due to the current economic situation. This means that a lot of people do not have ready money in case of an emergency. If you have an extended warranty, you will have peace of mind knowing your car is covered if you need replacements or repairs.

Extended Warranty Costs

You are probably wondering why you should make payments for something you don’t need at the moment. The real challenge first-time warranty buyers face is trying to figure out how much they are willing to pay on a warranty plan. The good news is that prices vary between the individual customer, plans, and providers.

Take time to research providers and compare their prices. You also have the option to decide what you want the warranty to cover in your car. This way, you can calculate how much you want to spend every month on a policy.

What to Consider When Selecting an Extended Warranty

Providers offer different extended warranty plans at different price points. When looking for an insurer, you don’t want to jump into a quick decision. Before making your final choice, first, make a point of finding out how you will be reimbursed for replacements and repairs.

Do you have to pay out of your pocket as you wait for reimbursement, or does the provider work directly with the repair shop? You can also find out if you can transfer your warranty if you sell your car in the future. Don’t be in a hurry to settle for an extended car warranty before evaluating the offer and exploring other alternatives.

In Summary

Buying an extended car warranty is a gamble. You cannot predict when or where your car can break down or require repairs. Some things like car damage and accidents are inevitable. You will have peace of mind knowing that you are covered in case of such events.

You may never have to use your extended car warranty, but imagine how much money you can save if you have a major component failure. Most people don’t think it is worth it to invest in an extended car warranty until they need it. Think of an extended warranty as something you are paying for that you will need later on.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.