What Is an Extended Auto Warranty
An extended auto warranty is a service contract that covers repairs or replacements on mechanical parts of your vehicle.
Most plans last several years and kick in after your original manufacturer’s warranty expires.
These plans will cover the cost of repairs on parts that wear out or fail due to manufacturer defects.
After you sign up for an extended warranty, you will only be responsible for bringing faults with your car to the attention of the warranty provider.
They will handle the rest.
What Does an Extended Auto Warranty Cover?
An extended auto warranty will cover most of the mechanical parts of your vehicle.
This includes the engine, transmission, and drivetrain.
It will also cover electrical components, such as the stereo and navigation systems.
Some plans will even cover the cost of towing your car to the nearest service center.
Others even offer rental car reimbursement or even cover the cost upfront.
There are a wide variety of warranties and coverage levels.
Some will be low-priced and cover only the most essential systems of your vehicle.
Other extended warranties can offer coverage that includes every facet of your vehicle experience.
How Much Does an Extended Auto Warranty Cost?
The average extended warranty cost is $1,200 to $2,000, but prices vary widely.
Extended warranty prices depend on the make and model of your vehicle, as well as the length of coverage you want.
You can get an extended warranty for as little as $500 or as much as $4,000.
However, the price is not always indicative of the quality of coverage.
Some low-priced plans can offer comprehensive coverage, while some high-priced plans may have more exclusions than benefits.
How Much Does It Cost to Not Have a Warranty?
The average American spends $1,500 on car repairs every year.
If you have an older vehicle or one frequently in the shop, you could be spending much more.
For example, a transmission replacement can cost upwards of $3,000.
If you don’t have an extended warranty or your warranty has expired, you will be responsible for the entire cost of repairs.
This can add up quickly and leave you with a hefty bill.
It may make more sense to have a warranty if you have a certain kind of car or live in a particularly high-traffic or volatile area.
Warranty vs. No Warranty Cost Comparison
- Average cost: $1,200 to $2,000
- Covers most mechanical parts
- May cover electrical components and towing
- Includes a deductible
- Average cost: $1,500 per year on repairs
- You are responsible for the entire cost of repairs
- Costs can add up quickly if you have an older vehicle or one that is frequently in the shop
- No deductible
What Are the Benefits of an Extended Auto Warranty?
The most obvious benefit of an extended auto warranty is that it will cover the cost of repairs to your vehicle.
This can save you a lot of money, especially if you have an older vehicle or one that is prone to mechanical issues.
Another benefit is that it takes the hassle out of finding a reputable repair shop.
When you have an extended warranty, the warranty provider will typically work with a network of authorized repair shops.
This can save you a lot of time and effort in finding a reputable shop you can trust.
What Are the Disadvantages of an Extended Auto Warranty?
The most significant disadvantage of an extended auto warranty is the cost.
These plans can be pretty expensive, and there is no guarantee that you will ever use the coverage.
If you never have any car problems, you will have wasted money on the plan.
Another disadvantage is that you may be limited in your choice of repair shops.
If you have an extended warranty, you will likely have to take your car to one of the authorized repair shops in the network.
This can be inconvenient, especially if there is no shop near you.
It is important to be clear on these hurdles before signing up for an extended warranty.
How Long Is Warranty Coverage?
Most extended warranties will cover your vehicle for 3 to 5 years.
The length of coverage will depend on the make and model of your vehicle and the plan you choose.
Some plans will even offer coverage for up to 10 years.
However, the longer the coverage, the more expensive the plan.
It is essential to consider how long you plan on keeping your car when choosing an extended warranty.
If you plan on selling or trading in your car within a few years, it may not make sense to get an extended warranty.
On the other hand, if you plan on keeping your car for many years, an extended warranty could save you a lot of money down the road.
Also, the earlier in your vehicle’s life you get an extended warranty, the better the deal you will get.
As cars get older and more worn down, warranty costs increase to compensate for the higher probability of repairs.
Should You Get an Extended Auto Warranty?
The decision of whether or not to get an extended auto warranty is a personal one.
There are pros and cons to consider before making a decision.
If you are worried about the cost of repairs, an extended warranty may be a good option.
However, if you are not concerned about repairs or confident in your ability to fix problems yourself, an extended warranty may not be worth the cost.
You will need to decide what is best for you and your situation.
Go Forth and Protect Your Car
We offer affordable, comprehensive extended auto warranty plans at Protect My Car.
We have coverage options to fit every budget and every car.
Our plans cover most mechanical and electrical components, towing, and rental car reimbursement.
We also have a team of expert customer service representatives who are always happy to help.
If you are considering an extended auto warranty, call us today.
We would be happy to answer any of your questions.