Extended Warranties Can Save You Thousands of Dollars
You probably already know that keeping your car maintained and in good condition is important.
You also likely know that regular maintenance costs money – a lot of it.
Keeping your car in top shape requires significant time, money, and effort.
Even the most diligent car guru can’t keep up with the number of things that need attention with their vehicle.
Fortunately, there are various ways to cut down on the cost and increase the frequency of maintenance expenses on your vehicle.
An extended warranty plan is one such way.
An extended warranty is a type of protection policy specifically designed for vehicles and intended to reduce the frequency and cost of maintaining your vehicle over its lifespan.
They vary greatly in their specifics, but most all extended warranties operate under essentially the same principle: they cover certain maintenance costs that may not be covered by your manufacturer’s warranty (also called “limited” coverage).
This means you can spend less time worrying about costly repairs and more time enjoying the benefits of having an expensive car!
Read on to learn more about extended auto warranties, what they offer, how much they cost, and whether or why you should get one for your vehicle.
What is an Extended Warranty?
An extended warranty is a type of protection policy specifically designed for vehicles and intended to reduce the frequency and cost of maintaining your vehicle over its lifespan.
They vary greatly in their specifics, but most all extended warranties operate under essentially the same principle: they cover certain maintenance costs that may not be covered by your manufacturer’s warranty (also called “limited” coverage).
This means you can spend less time worrying about costly repairs and more time enjoying the benefits of having an expensive car!
There are many types of extended warranties on the market – some only cover certain aspects of your car, while others are more general.
Some may offer lower costs over shorter durations, while others may offer more value over more extended periods.
This all depends on what you need and what your budget is.
For example, an extended warranty plan might only cover labor charges if your car needs to go in for service or replacement parts such as tires or wiper blades if they wear out prematurely.
Or it might cover accidents that cause damage to the car itself or injury to a third party involved when you’re driving.
Another option is to purchase a comprehensive plan which covers all costs associated with this type of warranty and offers other features such as roadside assistance, travel assistance services, and even replacing lost keys!
The best part about these plans is that they typically come at a much lower price than standard insurance plans or extended warranties, which only cover specific items.
Types of Extended Warranties
There are several types of extended warranties, but they all fall under one big umbrella: They are designed to cover the cost and frequency of maintenance for a vehicle over its lifespan.
Bumper-to-bumper and powertrain are the two most popular types of extended warranties for cars.
Why Buy an Extended Warranty?
The most important reason to buy an extended warranty is to save you money.
If your car is in good condition and requires minimal maintenance, you’ll find that buying an extended warranty is a wise investment.
This way, you can avoid expensive repairs by getting the coverage you need without having to worry about whether the company will cover the cost of your repairs.
For example, one significant repair to your car, an engine or transmission repair for example, can cost upwards of $2000.
This repair can easily cost more than a multiple-year or tens of thousands of miles of warranty.
Another reason people buy extended warranties is that they provide peace of mind.
If a manufacturer’s warranty covers your car, it’s unlikely that anything will go wrong or malfunction while your vehicle is still under warranty.
However, if something does go wrong with your vehicle – even if it’s not covered – it can be a huge hassle and a lot of money for repairs.
By purchasing an extended auto-warranty, you can be confident in knowing that you won’t have to worry about those issues!
How Much Does an Extended Warranty Cost?
An extended warranty can cost hundreds to thousands of dollars depending on the features.
The cost is determined by factors such as the vehicle’s make and model, the manufacturer’s warranty coverage, and how many years you want it to cover.
If you are looking for a more affordable option with fewer bells and whistles, consider extending your manufacturer’s warranty yourself.
This can be done by attending an informational presentation at your dealership or through research online.
Pros of an Extended Warranty
One of the most prominent benefits is that they offer coverage for parts and maintenance that may be outside of your manufacturer’s warranty.
This means you can spend less time worrying about costly repairs, as your vehicle will be covered.
Another benefit is that some extended warranties offer coverage for accidents and theft, even if you aren’t driving it at the time.
Your car might be covered during a long-term storage period or while you are renting a car.
Plus, many people get an automatic new car protection package with their extended warranty, so in case anything happens to your car, you can still drive it while waiting for it to be fixed.
Finally, these plans typically have more comprehensive coverage than your manufacturer’s warranty because they have more options.
They also often come at a lower cost than leaving similar repairs to chance with your manufacturer’s warranty as well.
Cons of an Extended Warranty
The main disadvantage of an extended warranty plan is that they are typically more expensive and only provide limited coverage.
They also have a high deductible – the amount you will pay for any covered repairs before your warranty kicks in – so you’re required to make an expensive repair before your cover is activated.
If you want to get one, ensure that the coverage and deductible are within your budget and that the benefits outweigh the costs.
Final Words
An extended warranty is a type of insurance policy specifically designed for vehicles and intended to reduce the frequency and cost of maintaining your vehicle over its lifespan.
They vary widely in their features, but most extended warranties operate under essentially the same principle: they cover certain maintenance costs that may not be covered by your manufacturer’s warranty (also called “limited” coverage).
This means you can spend less time worrying about costly repairs and more time enjoying the benefits of having an expensive car!
Read on to learn more about extended auto warranties, what they offer, how much they cost, and whether or why you should get one for your vehicle.
Protect My Car is a vehicle service contract provider, also referred to as extended car warranty provider, with multiple coverage plans for new and used vehicles with low to higher mileage to help meet your needs and budget. Protect My Car customers work directly with the company for customer service, claims administration and contract financing. No middleman or the need for third-party approval. All Protect My Car Plans include best-in-class claims and customer support, 24/7 roadside assistance, free oil changes and tire rotations and the exclusive PMC Rewards Plan, providing daily deals, giveaways, coupons, and thousands of ways to save money every day. Protect My Car has a 30-day money-back guarantee.