What Does a Car Warranty Normally Cover?

What is an Extended Warranty?

An extended warranty is an insurance policy on your vehicle and it acts as a safeguard against expensive, unforeseen repairs.

If you’re considering an extended warranty, it’s important to understand what is and is not covered.

For example, extended warranties usually have a deductible in order to use their benefits.

This is the amount you have to pay out of pocket for each repair.

The higher the deductible, the lower the cost of an extended warranty.

For example, if you have a $100 deductible and your car needs a $1,000 repair, you would pay $100 and the warranty company would pay the rest.

Extended warranties can be purchased from the manufacturer, dealer, or an independent provider.

Once the manufacturer’s warranty expires, an extended warranty kicks in and can last for years or many tens of thousands of miles driven.

If you’re considering an extended warranty, it’s important to understand what is and is not covered.

Be sure to compare prices, deductibles, and coverage before making a decision.

Read the fine print before buying to make sure you’re getting the coverage you need.

What Does the Extended Warranty Cover?

• All vital automobile systems are covered by extended warranties: Engine and engine modules, transmission and transfer case, drivetrain module (gearbox), suspension system, brakes and rotors, wheels and tires, electrical system (including climate control)
• Roadside assistance: Often, extended warranties include 24/7 roadside assistance, which can include towing, refueling, trip interruption service, and more.
• Additional benefits: Some extended warranties come with additional benefits, like rental car reimbursement or trip interruption coverage.
• Wear and tear: While manufacturer warranties cover defective materials or workmanship, some extended warranties also include maintenance and repairs as a result of normal use. This is typically called a “wear and tear” warranty.

Costs of an Extended Auto Warranty

What you pay for an extended vehicle warranty is determined largely by the terms of your policy. Here are some of the elements that influence the cost of your extended warranty:

• Make: Luxury cars and expensive models usually drive up the cost of your warranty due to pricey replacement parts.
• Older Vehicle: Require more repairs, which is why warranties for them may be more expensive than those on newer cars.
• Mileage: Repairs for high-mileage cars are more expensive
• Condition: Expect a higher rate for your extended warranty if your vehicle is not reliable or has been damaged.
• Coverage: Premium warranties include more vehicle components and are thus more costly.

Deductible: Plans with deductibles have lower premiums.

Provider: Costs vary between car dealerships and different third-party providers.

Make sure to get several quotes and ask questions when shopping around for an extended warranty. Knowing how much it costs helps you determine whether it’s the right purchase to protect your vehicle.

The Extra Benefit of A Premium Extended Warranty

Premium extended car warranties typically offer a higher level of coverage than a standard warranty.

This can include coverage for:

• Electronics: Audio systems, navigation systems, and other electronic components may be covered by a premium warranty.
• Maintenance: Some premium warranties cover scheduled maintenance, like oil changes, tire rotations, and brake replacement.
• Extraordinary wear and tear: As mentioned above, some extended warranties cover repairs as a result of normal wear and tear. For example, a more comprehensive warranty could cover the damages if your dog were to destroy your back seats.

Keep in mind that while a premium warranty may offer far more coverage, it will also likely be more expensive than a standard warranty.

Depending on your lifestyle, it may be something you’re willing to pay for.

What Is Not Covered By An Extended Warranty?

While extended warranties cover many repairs, there are some exceptions.

Here are a few things that are typically not included in an extended warranty:

• Pre-existing conditions: Repairs needed as a result of a pre-existing condition (a problem that existed before the warranty was purchased) are not covered.
• Damage from an accident: Repairs needed as a result of an accident are not covered.
• Improper maintenance: Repairs needed as a result of improper maintenance (like failing to change the oil) are not covered.
• Modifications: Repairs needed as a result of modifications made to the vehicle (like adding aftermarket parts) are not covered.

As you can see, extended warranties come with a lot of benefits.

However, it’s important to understand what is and is not covered before making a purchase.

Extended warranties can be purchased from the manufacturer, dealer, or an independent provider.

Be sure to compare prices and coverage before making a decision.

How Is an Extended Warranty Different from Collision Insurance

An extended warranty is an insurance policy on your vehicle that protects you from expensive, unforeseen repairs.

This type of insurance is different from an accident insurance policy in a few ways.

First, an extended warranty typically covers more types of repairs than an accident insurance policy.

This includes things like wear and tear, maintenance, and electronic components.

An Insurance policy on the other hand only covers things like accidents, theft, and natural disasters.

Second, an extended warranty typically has a longer-term than an accident insurance policy.

This means that it will cover your vehicle for a longer period of time after you purchase it.

Third, an extended warranty typically costs more than an accident insurance policy.

This is because it provides far more coverage.

How to Proceed with Extending My Warranty

When it comes to car warranties, there are a few different types available.

An extended warranty is one that can be purchased for an additional cost on top of the original warranty.

This type of warranty will generally cover more than the standard factory warranty.

However, not all problems or issues with your car will be covered by an extended warranty.

It’s important to read the fine print and understand what is and isn’t included in the policy before you decide if this type of coverage is right for you.

If you do choose to buy an extended vehicle warranty, make sure you also consider purchasing a maintenance plan.

A good maintenance plan can add value to your warranty and help keep your car in good condition over time.

They are an insurance policy against future problems with the vehicle.

Although they may seem like an unnecessary expense, they can be worth the cost if you choose the right plan and use it for the right car.

Have you ever purchased an extended warranty on a car?

What was your experience?

Let us know in the comments below. Do you have a warranty or maintenance plan with us?

Please leave us a review!

Thanks for reading!