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A Complete Guide To Extended Car Warranties How They Work, and What They Can Do For You!
When you purchased your car, the dealership asked you if you wanted to buy an extended or additional auto warranty beyond the manufacturer. And indeed, he used technical details that you didn't understand and honestly weren't necessary; they only made you more confused.
Here Fixmobily explain simply what is car warranty extension And is it worth buying one?
Purchasing one usually extends the length of coverage provided by the vehicle's factory, but it's not always worth the price.
Although an extended car warranty is standard when purchasing a new car, you can usually get a service contract anytime before it expires.
How does a car warranty work?
The expression "extended warranty" is misleading because it is not a warranty but a service contract. Although original and extended warranties have essential distinctions, they all guarantee the repair or replacement if specific criteria are met.
When buying an extended warranty, keep in mind that you are purchasing an insurance policy for your car. Repairs are covered for a specified number of days and mileage. On the other hand, the fundamental guarantees are part of the product's purchase price. In an unexpected repair, an extended warranty could save you money in the long run.
What does an extended car warranty cover?
The services that the warranty will cover and the length of the extended warranty in time or miles vary widely. However, service contracts usually only cover electrical or mechanical part issues, especially those not covered by manufacturers' warranties.
Although service contracts can cover the engine and transmission, they generally exclude routine maintenance like oil changes and tire replacement. Plus, service contracts last from one to eight years or 12,000 to 125,000 miles. You should be able to choose the duration or mileage that best suits your needs.
How much does a car warranty extension cost?
In addition to the time and miles to be covered, the cost of an extended warranty varies widely, from $1,000 to several thousand dollars upfront, plus a deductible per visit or repair which is typical $100 or a little more. Plans with no deductible are also available.
- Blanket: Read sample contracts if available. Make sure you understand what any warranty covers before you buy.
- Cost: Do not pay more for your guarantee. Extended car warranty costs are different for every driver, and the only way to find the best price is to compare multiple quotes.
- Customer Reviews: Read review sites; one of them is the Better Business Bureau (BBB) , to understand how the company treats its customers.
- Reputation in the industry: Consider vendors with well-known brand partners, awards, or top industry reviews. Check if the company is financially stable enough to pay claims.
Which extended car warranty is the best?
There is no best-extended warranty provider for every driver. Different people may have different warranty needs, and the only way to find the best provider for you is to compare your options.
Advantages and disadvantages of a car warranty extension
Benefits:
- Savings on reimbursable repair costs
- Robust and extensive protection
- Purchasing flexibility
The inconvenience:
- Additional costs: The initial fees and deductibles described above can add up to a lot of money on top of insurance costs and the price of the vehicle itself, which can put you in a budget crisis.
- Use it or lose it: Extended car warranties act like insurance policies in that if you don't get your car fixed, you get no tangible benefit, and you lose money.
- You only pay for covered expenses: Any repairs your car may need may not be covered by the service contract or may already be covered by the manufacturer's warranty, and coverage limitations may also apply.
Do I need an extended warranty?
You're shopping for a reliable vehicle and have an emergency fund and auto insurance coverage to cover basic repairs and physical damage.
Now that you know the essentials of an extended warranty, consider when they offer you one and don't be forced to buy it immediately.
An extended car warranty can help cover the cost of certain repairs to your vehicle when the manufacturer's warranty expires, but an extended warranty isn't a good option for everyone.
Instead of purchasing an extended warranty, it may make more sense to set aside the money you would otherwise spend on it and use the funds for needed repairs. But before you decide if an extended warranty is right for you, there are a few things you should know, like how an extended car warranty works, how much it costs, and the pros and cons of getting one. And while we'll refer to it like an extended warranty, since it's a commonly used term, it's not a warranty as defined by federal law and doesn't come with the consumer protections that other warranties do.
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