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The Costs of Extended Auto Warranties and What You Pay For

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How the Costs are Calculated
There are a few different factors that play into how extended vehicle warranty costs are calculated.
The first is the age of the vehicle.
The older the vehicle, the higher the potential repair costs, and thus the higher the price of the warranty.
The second factor is mileage. A vehicle with higher mileage is more likely to need repairs than one with lower mileage.
As a result, warranties for high mileage vehicles tend to cost more than those for low mileage vehicles.
Finally, the type of vehicle also plays a role in warranty costs.
Luxury cars and SUVs tend to have higher repair costs than economy cars, so their warranties are usually more expensive.
Ultimately, the best way to get an accurate estimate of extended vehicle warranty costs is to get a quote from a reputable provider.

The Price Breakdown on Extended Warranties
Extended vehicle warranties typically range in price from $500 to $2000 per year, that’s about $40 to $175 per month.
This range depends on the level of coverage, age, and mileage of the vehicle.
The deductible for an extended warranty is usually $100 or $200 before the company providing the warranty begins to pay for the repairs.
The deductible amount is in large part based upon the agreement you have with your extended warranty provider.
A general rule of thumb is that a larger deductible will mean a lower monthly payment and vice versa.
For example, a 3-year/36,000-mile warranty on a used car that has already driven 30,000 miles might cost $1,800.
The same coverage on a new car just off the lot would be much less expensive because there’s less risk involved.
In this case, it might cost $500.

Comparing the Cost of an Extended Warranty to the Cost of Repair
When trying to decide whether or not to purchase an extended warranty, it’s important to compare the cost of the warranty to the cost of repairs.
For example, if you purchase a 3-year/36,000-mile warranty for $1,800 and have $2,000 worth of repairs during that time, then you’re ahead of the game.
However, if you have $3,000 worth of repairs, then you would have been better off financially if you had not purchased the warranty.
It’s also important to keep in mind that most new cars come with a manufacturer’s warranty that covers repair costs for a certain period of time.
For example, many new cars come with a 3-year/36,000-mile warranty. So, if you’re considering an extended warranty for a new car, you need to factor in the cost of the manufacturer’s warranty when making your decision.
During the period while your vehicle is covered under the warranty that came with it when you purchased it, the main benefit to purchasing an extended warranty for your car is that it will cover some of the parts and offer services that your manufacturer’s warranty does not.

What Do I Get for My Money with An Extended Warranty?
Extended vehicle warranties typically cover repairs to your car’s engine, transmission, and drivetrain.
Most also cover electrical components, as well as suspension and brake components.
Some extended warranties also cover towing and rental car reimbursement.
When considering an extended warranty, it’s important to find one that covers the parts of your car that are most likely to need repairs.
For example, if you live in an area with a lot of potholes, then you might want to look for an extended warranty that covers suspension component repairs.
Or, if you live in a cold climate and your car is susceptible to engine problems, then you might want to look for a warranty that covers engine component repairs.
There are many extended warranty plan alternatives available to fit each customer’s specific requirements.

What Gets Replaced when I Use My Extended Warranty?
Different parts and systems in a car can wear out over time and miles.
These include the engine, transmission, transfer cases, tie rods, axles, brakes, and suspension.
When these parts or systems need to be repaired or replaced, it can be expensive.
An extended vehicle warranty can help cover the costs of these repairs.
There are varieties of extended warranty plans ranging from the least expensive, basic plans to the very expensive and ultra-premium.
The coverage these warranties provide will range drastically, the most comprehensive will go as far as including parts that don’t wear out like the audio system, navigation, lights, and windows.

When Would I Use My Warranty?
If your car’s engine blows up and needs to be replaced, that would be a very expensive repair.
If you have an extended warranty that covers engine repairs, then you would only have to pay the deductible (if there is one) and the warranty would cover the rest.
This would save you a lot of money. An extended warranty is basically insurance for the parts on your car.
Without an extended warranty, the cost of replacing an engine can be very expensive.
The average cost of a new engine is around $4,000.
If you have an extended warranty that covers engine repairs, you would only have to pay the deductible (if there is one) and the warranty would cover the rest.
This would save you a lot of money. An extended warranty is basically insurance for the parts on your car.

What Are Some Other Benefits of Having an Extended Warranty?
In addition to covering expensive repairs, extended warranties also usually include roadside assistance.
This can be a lifesaver if you break down on the side of the road. Roadside assistance will send someone to help you change a tire, jump start your car, or bring you some gas if you happen to run out.
The level of roadside assistance and what they can do for you will vary from warranty to warranty, so be sure to read the fine print before you purchase.
Another benefit of extended warranties is that they can give you some peace of mind.
This can help you relax and enjoy your car, knowing that it is covered if something unexpected happens.

Should I Purchase an Extended Warranty for My Car?
Be sure to do your research and get quotes from multiple reputable providers before making a decision.
Not everyone needs an extended warranty, but if you are concerned about expensive repairs or being left stranded without help, it may be a good idea to purchase one.
If something goes wrong with your car, you know that you won’t have to pay for the repairs out of your own pocket.
There are seriously reputable extended warranty providers doing good business.
They are not at all affiliated with the greedy scam callers that have become a meme at this point.
Official extended auto warranty providers are a worthwhile safety net for many millions of drivers.
Be sure to do your research on the warranty you’re interested in.
Doing so will ensure you get the best possible coverage for your needs at the most affordable price.
Thanks for reading! We hope this article was helpful in understanding how much extended warranties cost, how they work, and what they can cover.

About Protect My Car

Protect My Car is an extended auto warranty company. Our goal here at Protect My Car is to eliminate your worry of being financially responsible for an expensive mechanical breakdown. With our extended auto warranty, you don’t have to worry about being fully burdened with the cost of a covered repair.

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