Putting a Warranty on Your Car
A few variables influence how much a vehicle warranty will cost.
The longer a vehicle has been on the road, the more costly and likely repairs may be and, thus, the higher the warranty cost.
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 low mileage vehicles.
Because exotic vehicles and SUVs have a higher repair frequency than economy cars, their warranties are typically more expensive.
The best way to determine the cost of an extended vehicle warranty is to obtain a quote from a reliable company.
Weighing the Costs
Extended vehicle warranties cover repairs to your car’s engine, transmission, and drivetrain.
Although cars should remain operable with regular maintenance, they will need some basic repairs as time passes.
It is essential to realize that not all cars are of the same quality.
For example, engine problems are the most frequent in Dodge vehicles and include everything from minor engine issues to severe engine damage.
The vehicle’s make is also a factor that determines how often it will need repairs.
For example, Japanese cars such as Toyota and Honda are known for reliability.
This proven standard of excellent reliability is why these manufacturers offer impressively competitive terms on their in-house warranties.
There are many benefits to the impressive warranties offered by Honda, Toyota, Kia, Volkswagen, and others.
However, these warranties still tend to fall short of the completeness of third-party, custom coverage plans.
Some extended warranties also cover towing and rental car reimbursement.
When looking for an extended warranty, keep in mind that it must cover the components of your car that are most likely to require repair.
For example, if you live in an area where the local town fell in love with speedbumps, you might want to look for an extended warranty covering suspension component repairs.
Or, if you live in a hot climate and your car is susceptible to engine problems, you might want to look for a warranty that extensively covers engine repairs.
There are numerous extended warranty plans from which to choose.
Each can be tailored to meet any vehicle’s needs.
What You Need to Know About the Cost
The average cost of an extended vehicle warranty is about $500 to $2000 per year or around $40 to $175 per month.
The amount of coverage, the vehicle’s age and mileage, and whether or not any modifications have been made are among the factors that will determine the price.
Before the company providing the warranty begins to pay for repairs, most extended warranties have a deductible of $100 or $200.
The deductible amount is primarily based upon the agreement you have with your extended warranty provider.
A larger deductible will mean a lower monthly payment, and the opposite is also true.
For example, a 3-year/36,000-mile warranty on a used car already driven 30,000 miles might cost $1,800.
Because there’s less risk involved, the same coverage on a new vehicle just off the lot would be far more affordable.
What Parts Does My Extended Warranty Cover?
The parts that make up a car wear out over time and miles.
The engine, transmission, transfer cases, tie rods, axles, brakes, and suspension are just a few of the systems that the owner of the vehicle must maintain.
When these parts or systems need to be repaired or replaced, it can be expensive.
An extended warranty helps cover the costs of these sorts of repairs.
Extended warranties are available in various forms and levels, ranging from the least expensive, basic versions to the most costly, high-end plans.
The comprehensiveness of coverage extended warranties provide varies considerably, with the most comprehensive covering components that don’t wear out, such as the audio system, navigation, lights, and windows.
When Should I Take Advantage of My Warranty?
If your car’s engine seizes up and needs to be replaced, that could be a costly repair.
If you have an extended warranty that includes engine repairs, you’ll only have to pay the deductible (if any), and the coverage provider will cover the rest.
Without an extended warranty, replacing an engine can be very expensive.
The average cost of a new engine is around $5,000.
What are some other benefits of having an extended warranty?
Extended warranties also usually include roadside assistance in addition to covering major repairs.
This can be very helpful if you break down on the side of the road.
Roadside assistance provides you with a real person to help you change a tire, jump start your car, or bring you some gas if you happen to run out.
The services offered by roadside assistance will vary from warranty to warranty.
Another benefit of extended warranties is that they can help you relax and enjoy your car, knowing that the warranty will cover it if something goes wrong.
Should I Get a Warranty on My Car?
The majority of new vehicles come with a manufacturer’s warranty, which covers manufacturers’ defects and any faults with vehicle systems.
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.
The primary benefit of purchasing an extended warranty for your vehicle is that it will cover some components and provide services that your manufacturer’s warranty does not.
An extended warranty is not for everyone, but it may be a wise investment if you’re concerned about costly repairs or being stranded without help.
If something goes wrong with your car, you know that you won’t have to pay for the repairs out of your pocket.
Extended auto warranties are a helpful safety net for many millions of people.
At Protect My Car, we strive to offer great advice alongside our excellent extended warranty plans.
We hope that this post was useful in determining how much extended warranties cost, what they cover, and how you can get the most out of one.
Let us know what you think!
Leave a comment below.