What is a Warranty?
An extended car warranty is a safeguard against expensive, unforeseen repairs.
It protects your vehicle beyond the manufacturer’s warranty, often for several years or, in some instances, for the car’s lifetime.
An extended warranty is beneficial if you are worried about the potentially high cost of repairs.
Many repairs can cost thousands of dollars, and an extended warranty will help cover those costs.
Extended warranties can also cover many parts that wear out over time.
If you purchase a new car, it will come with a factory warranty that covers certain repairs or maintenance for a set time.
But once that expires, you’re on your own if something goes wrong.
That’s where an extended warranty comes in.
When Do I Need a Warranty
An extended car warranty is a service contract that helps cover repairs to your vehicle long after the factory warranty expires.
Both car dealerships and third-party companies sell these contracts.
Most cars will come with a manufacturer’s warranty.
Some people choose to get a warranty before a manufacturer’s warranty expires.
By purchasing an extended warranty early, it’s possible to extend warranty terms or expand the level of coverage.
Most people choose to get an extended warranty when a manufacturer’s warranty no longer covers their car.
This continues protection in case something goes wrong with their car.
What if You Already Have Car Insurance?
It is important to note that an extended warranty is not insurance.
An extended warranty provides coverage for the wear and breakdown of the parts and systems of a car.
In the case of an accident on the road, refer to your insurance policy.
For example, if you have a fender bender and your bumper needs replacing, your insurance will likely cover the cost of repairs.
However, if your car’s engine breaks down because you had an oil leak and the pistons seized, an extended warranty may help cover the costs of repairs.
What Does an Extended Warranty Cover?
An extended warranty will cover most of your car’s major systems and parts.
The following is a basic outline describing some of the parts that are protected under an extended car warranty.
- Engine and Engine-Powered Components: Covering the block, pistons, shafts, turbo or superchargers, and many sensors.
Engine-powered components include, among others, the A/C compressor, cooling systems, brakes, and steering.
Maintenance plans are available that will provide routine maintenance, replacing fluids, belts, and more fringe components.
- Transmission and Transfer Case: Extended warranties will often cover the torque converter, valves, and gears.
More premium warranties will go as far as providing coverage for clutches and even shift boots.
- Drivetrain: This includes the driveshaft, drive axles, differentials, Four-wheel drive, and all-wheel drive components.
Be sure to expect to pay a small premium, generally speaking, for cars with more advanced components.
- Electrical System: Extended warranties will cover the battery, ignition system, and sensors.
Modern vehicles are laden with electrical components, wiring, and processing power.
You may not expect it when you sign on for an extended warranty, but the electrical coverage may be the most helpful service offered by your provider.

How Much Do Extended Warranties Cost?
The cost of an extended warranty will vary depending on several factors.
This range depends on the vehicle’s level of coverage, age, and mileage.
Extended vehicle warranties typically cost from $500 to $2000 per year, about $40 to $175 per month.
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 determined by the agreement you have with your extended warranty provider.
Generally, a larger deductible will mean a lower monthly payment.
You may be able to finance the cost of an extended warranty into your car loan.
Should I Buy an Extended Warranty?
Whether or not you should buy an extended warranty is a personal decision.
You’ll have to decide what a warranty means to you.
You’ll need to weigh the cost of the warranty against the likelihood that you’ll need to use it.
If you’re planning on keeping your car for a long time or worry about expensive repairs, an extended warranty may be a good idea.
On the other hand, if you’re not worried about repairs or only planning on keeping your car for a few years, an extended warranty may not be worth the cost.
Extended warranties are not cheap, but they can save you a lot of money in the long run.
The cost of repairs can quickly add up, and an extended warranty can help minimize those costs.
What Kinds of Warranties Are There?
Manufacturers’ warranties are the most common type of warranty.
These warranties are included with purchasing a new car and cover repairs for a set period, usually 3 years or 36,000 miles.
After the manufacturer’s warranty expires, you can purchase an extended warranty from the dealership or a third-party provider.
Third-party providers generally offer more comprehensive coverage than dealerships.
These warranties can cover a wide range of years and miles, but they typically start at around 12 months or 12,000 miles and can grow drastically depending on the terms you select.
You can also get extended warranties that cover more than just repairs.
Some companies offer a kind of warranty called a maintenance plan.
These will cover routine maintenance, like oil changes and tire rotations.
They’re a way to help you keep your car in good condition and can save you money in the long run.
A Warranty Means Protection
An extended car warranty is a way to protect your vehicle.
When shopping for a new or used car, ask about warranties.
Protect My Car is an excellent resource for extended car warranties.
We offer a variety of plans to fit your needs and budget.
Call us today at 1-(866) 832-8840.
And when you’re ready to purchase an extended warranty, be sure to do your research to find the best possible coverage for your needs.
We offer several different plans that cover a wide range of repairs, and our prices are some of the most competitive in the industry.
Contact us today, and our knowledgeable staff will always be happy to answer any questions about Extended Vehicle Coverage Plans.