A car extended warranty is designed to provide extra protection against expensive repair bills that may occur over the course of vehicle ownership. Typically, these warranties cover major mechanical parts like the engine and transmission. Reputable providers also include coverage for other essentials like air conditioning and heating components, electrical and electronics systems and other features that make your vehicle a joy to drive. The downside is that you must usually pay a deductible before repairs are covered. The cost of a car extended warranty varies by provider, coverage term and additional perks like roadside assistance.
Many dealerships offer their own warranties on new and used cars, while third-party companies can sell standalone policies as well. You can often negotiate the price of a warranty, and some dealers will even roll the initial cost into your overall purchase or loan costs. While this is a convenient way to finance the warranty, you should shop around for the best deal. You could save yourself thousands of dollars in the long run.
When choosing a car extended warranty, it’s important to find one that is backed by a reputable company with a good track record of customer service and payment of claims. You should also read reviews from consumers, and look at the fine print to find out what is and isn’t included in the plan. For instance, some warranties don’t cover repairs for modified cars or if you don’t follow manufacturer recommended maintenance schedules. It’s also important to know whether the deductible will be paid out-of-pocket or reimbursed by the insurer.
It’s also worth noting that most extended car warranties don’t cover the costs of what are known as “consumables” — items such as brake pads, tires and rotors that will need to be replaced over time. This is because these expenses are not considered a necessity for the safe operation of the vehicle.
You should always consult with a qualified mechanic before purchasing a car extended warranty. They can give you an honest assessment of whether the added peace of mind is worth the investment. They can also recommend a reputable provider based on your vehicle’s make and model. Alternatively, you can create an emergency fund that will cover the cost of repairs in the event that your extended warranty fails.
You can use online tools like to compare quotes from various car extended warranty providers and see what other customers are paying. You can also consider a car warranty from the manufacturer itself, which tends to be cheaper than those from third-party companies. However, these warranties don’t protect you against the risk of a dealer or manufacturer going bankrupt and leaving you with a contract that isn’t valid anymore. If you decide to go with a factory-backed warranty, it’s wise to do your research on the brand before making a final decision. Then, you can rest assured that your money is well spent. With the right research, you can get the best car extended warranty for your needs.