Are Extended Warranties Expensive?

The Price of an Extended Auto Warranty

An extended auto warranty is a protection plan for your vehicle and acts as a safeguard against expensive, unforeseen repairs.

Many drivers purchase an extended warranty to protect themselves from the high cost of repairs.

The price of an extended warranty depends on several factors, including the make and model of your vehicle, the length of the warranty, and the level of coverage.

On average, you can expect to pay anywhere between $20 and $100 per month for an extended auto warranty.

The exact price will depend on the factors mentioned above.

If you are looking for a comprehensive plan covering a wide range of repairs, you can expect to pay on the higher end of the spectrum.

Keep in mind that you may be able to get a discount on your extended warranty if you purchase it when you buy your car.

Be sure to ask your dealer about any available discounts.

Overall, an extended auto warranty is a worthwhile investment for many drivers.

It can give you peace of mind knowing that you are covered in the event of an unexpected repair.

If you are considering purchasing an extended warranty, be sure to get a quote above and compare plans and prices to find the best coverage for your needs.

What a Warranty Covers

An extended auto warranty will cover repairs to your vehicle that are not covered by your manufacturer’s warranty.

Depending on your vehicle’s warranty, this can include major components such as the engine, transmission, and air conditioning system.

There are a variety of warranties available.

You can add many to an existing manufacturer’s warranty to extend coverage.

This combination can help cover additional parts of your car.

However, aftermarket warranties only come from a third-party provider and are not affiliated with the car manufacturer.

It is important to note that an extended warranty does not cover routine maintenance, such as oil changes and tire rotation.

Paying for an Extended Warranty

There are a few different ways you can pay for an extended warranty.

You can finance the warranty cost through the dealership, pay with a credit card, or include the cost in your auto loan.

If you finance the warranty through the dealership, it will be rolled into your auto loan.

This means you will be paying interest on the warranty and the car.

Paying with a credit card may give you some additional protections, such as extended warranties offered by the credit card company.

Still, you will also have to pay interest on the balance if you do not pay it off right away.

Including the warranty cost in your auto loan may be the most convenient option, but it is important to compare interest rates to ensure you are getting the best deal.

The Cost of Repairs vs. The Cost of A Warranty

One of the main factors to consider when deciding whether or not to purchase an extended warranty is the cost of repairs.

If you have a new car, repairs will likely be covered under your manufacturer’s warranty.

However, the likelihood of needing expensive repairs increases as your car gets older.

Depending on the make and model of your vehicle, some repairs can cost thousands of dollars.

For example, a transmission repair for a Toyota Camry can cost upwards of $3,000.

If you have an extended warranty covering transmission repairs, you would only have to pay your deductible, typically around $100.

In this case, the extended warranty would save you significant money.

On the other hand, if you rarely need repairs and the manufacturer’s warranty still covers your vehicle, you may not need an extended warranty.

It is crucial to weigh the cost of repairs against the cost of the warranty to decide if an extended warranty is right for you.

An extended warranty can be a wise investment if you are not prepared to pay for such a repair out-of-pocket.

Finding the Best Warranty

Not all extended warranties are created equal.

It is essential to do your research to find the best coverage for your needs.

There are a few things you should keep in mind when shopping for an extended warranty:

– Make sure you understand what is and is not covered.

– Compare deductibles.

– Know the length of the warranty.

– Compare prices.

When you are considering an extended warranty, be sure to read the fine print, so you know exactly what is covered.

Some warranties only cover certain parts of your vehicle, while others will cover the entire car.

It is important to choose a plan that meets your needs.

Also, be sure to compare deductibles before you purchase a plan.

The Most Expensive Warranties and Their Features

If you are looking for the most comprehensive coverage, you can expect to pay on the higher end of the spectrum.

For example, a bumper-to-bumper warranty with all of the optional extras for a Mercedes-Benz will cost around $3,500 for four years or 50,000 miles.

This type of warranty includes virtually everything on the car except for items that are considered “wear and tear” items, such as brake pads and wiper blades.

For a Honda, the same expansive coverage would cost around $2,000.

These exotic type coverages will include some fantastic fringe benefits.

For instance, with the Mercedes coverage mentioned, you would be entitled to 24-hour roadside assistance, trip-interruption protection, and even towing.

You can also expect rental car reimbursement and concierge services with this level of coverage.

Consider a Maintenance Plan

If you want coverage beyond repairs, you may want to consider a maintenance plan.

For example, Protect My Car offers a “Supreme” level of coverage that, among other benefits, includes an oil change and tire rotation every 6 months or 7,500 miles, whichever comes first.

This service is in addition to the repair coverage offered by the extended warranty.

The cost of this type of plan varies depending on the make and model of your car, but you can expect to pay around $100 per month.

The Bottom Line

An extended warranty can be a wise investment, but it is essential to research to find the best coverage for your needs.

Be sure to understand what is and is not covered, compare deductibles, and know the length of the warranty.

Also, be sure to compare prices before you purchase a plan.