Warranty Costs
One thing to consider when buying a car is the cost of an extended warranty.
An extended warranty is a protection policy for your vehicle and acts as a safeguard against expensive, unforeseen repairs.
Many feel that an extended warranty is worth the investment, but it’s important to know what you’re getting for your money before making a decision.
In this article, we’ll look at the cost of an extended warranty and some of the things you need to know before buying one.
What Is an Extended Warranty?
An extended warranty is a service contract that covers repairs or replacements on specific car parts or systems.
It’s a protection policy that can help you avoid expensive repairs down the road.
An extended warranty is sometimes called a vehicle service contract, vehicle protection plan, or auto warranty.
Warranties vary from company to company, but generally, they will cover repairs or replacements on major car components like the engine, transmission, and electrical system.
Some extended warranties also cover towing, rental cars, and roadside assistance.
There are a wide variety of extended warranty policies.
They can range in price from a few hundred to a few thousand dollars, and they can last for a year, two years, or even the car’s lifetime.
What Does an Extended Warranty Cost?
The cost of an extended warranty depends on a few different factors.
The make and model of your car, your driving habits, and the length of the warranty all play a role in determining the price.
You can expect an extended warranty to cost you between $500 and $2000.
However, some companies offer limited coverage for as little as $100.
Considering that the average cost of repairs can total $2000 or more, an extended warranty may be a wise investment for some.
For example, if your transmission fails and costs $3000 to repair, an extended warranty will save you a significant amount of money.
If you were to sign up for Protect My Cars’ Supreme Plan, the cost of the full warranty would be about $2000 less than the cost of a single transmission repair.
The deductible per repair visit would be $100, and the plan would cover up to $6000 in repairs per year.
This particular warranty includes extras like 24/7 roadside assistance, trip-interruption protection, and rental car reimbursement.
What is Covered by a Warranty?
As we mentioned, extended warranties vary from company to company.
Some cover major components like the engine and transmission, while others only cover the basics.
However, if you had no extended warranty, you would be responsible for the entire cost of the repair.
Most extended warranties will cover repairs or replacements on major car components like the engine, transmission, and electrical system.
Some companies also offer coverage for towing, rental cars, and roadside assistance.
Warranties will also have a deductible, the amount you will have to pay out-of-pocket before the warranty coverage kicks in.
Deductibles can range from $0 to $500 or more.
What is NOT Covered by a Warranty?
Most extended warranties do not cover things like wear and tear, routine maintenance, or damage caused by accidents.
It’s essential to read the fine print of your warranty contract to see exactly what is not covered.
Wear and tear parts include things like brakes, tires, and wipers.
Routine maintenance items include things like oil changes and tune-ups.
Depending on how you maintain your vehicle, a maintenance plan may be a good idea.
A maintenance plan is a service contract that covers the cost of routine maintenance items like oil changes, brake replacement, and tune-ups.
Is an Extended Warranty Worth the Cost?
Whether or not an extended warranty is worth the cost is a personal decision.
For some, the peace of mind that comes with having an extended warranty is worth the investment.
For others, the cost of the warranty is not worth the coverage.
It’s important to research and compare prices before making a decision.
An extended warranty may be a good idea if you plan on keeping your car for a long time or if you don’t have a good history of maintaining your vehicle.
If you are always up-to-date on your car’s maintenance or if you only keep your vehicle for a few years, an extended warranty may not be worth the investment.
What is a Maintenance Plan?
A maintenance plan is a service contract that covers the cost of routine maintenance items like oil changes, brake replacement, and tune-ups.
It’s important to note that maintenance plans are not the same as extended warranties.
Maintenance plans do not cover repairs or replacements on significant car components.
They are designed to help you save money on the cost of regular maintenance items.
Protect My Car offers Maintenance Plans starting at just $15 per month.
With the Protect My Car Maintenance Plan, you’ll never have to worry about the cost of routine maintenance items again.
Are There Deductibles for Maintenance Plans?
No, there are no deductibles for maintenance plans.
The monthly fee covers the cost of all routine maintenance items, with no out-of-pocket costs for you.
What is Covered by a Maintenance Plan?
A Protect My Car Maintenance Plan covers the cost of all routine maintenance items, including oil changes, brake pads and rotors, and tune-ups.
It also covers towing costs, flat tire service, jump starts, and 24/7 roadside assistance.
What is NOT Covered by a Maintenance Plan?
A Protect My Car Maintenance Plan does not cover the cost of repairs or replacements on major car components.
It is designed to help you save money on the cost of regular maintenance items.
The Bottom Line
An extended warranty can be an excellent way to protect yourself from expensive repairs down the road.
However, they come at a cost.
Before buying an extended warranty, it’s essential to research and compare prices.
It would help if you also read the fine print of your contract to see exactly what is and is not covered.
Thank you for reading our article on the cost of extended warranty service.
We hope it has been helpful.
If you have any questions, please feel free to contact us.
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.