How to Choose An Extended Warranty

How to Choose An Extended Warranty
How to Choose An Extended Warranty

An extended car warranty sometimes referred to as a service contract, is a prolonged warranty given to consumers in addition to the original manufacturer’s warranty. However, it’s always important to bear in mind that such warranties might not cover all types of repairs. And you also want to make sure that what’s covered isn’t also offered in your other insurance plans as this could end up being costly for no reason.

Regardless of the exact type of extended car warranties you purchase, the truth is that these investments give you the peace of mind you need by limiting the financial risk for the agreed period of time.

Understanding the Cost

There are countless aspects that contribute to the cost of an extended car warranty. These include the vehicle’s age, vehicle mileage, as well as your driving habits. Generally speaking, the average extended car warranty goes for about $350 to $700 per year.

When your vehicle needs repairs and you lack coverage, you’ll have to make the payment in cash. And that could be quite cumbersome, especially if you don’t have enough savings. Get extended warranty and get the peace of mind.

Why Purchase An Extended Warranty?

Extended warranties can significantly reduce financial stress for anyone who owns a car model designed by unreliable models. Typically’ they’re available through dealerships, insurance companies, as well as auto clubs. The plans can differ in terms of price, the things covered, and the set period of time. And the small print really matters since aftermarket programs have certain limitations on the kind of repairs covered as well as the location in which the work can be done. Buying extended warranty gives you access to exceptional warranty protections plus extra services like trip reimbursements as well as rental-car coverage.

The Amazing Benefits of Extended warranties

Extremely Affordable

The cost of an extended warranty will vary depending on the dealership as well as your vehicle’s age, make, and model. But generally speaking, the cost is often much lower than what you’d have to pay if the car suffers a serious mechanical or system failure.

The extended warranty insures you against crippling expenses that you might incur down the road. If you’re financing the car, your dealership will roll the warranty into the loan instead of asking you to make cash payments.

Peace Of Mind

With an extended car warranty, you get the peace of mind you need when driving. You don’t need to worry about any repairs and you can always relax knowing that in case something happens, it isn’t your financial responsibility. However, it’s important to note that not all repairs are covered. Each contract features a list of exclusions that covers certain parts, systems, as well as repairs that the extended warranty doesn’t cover.

According to research, 55 percent of those who purchase extended car warranties end up not using them at all. Besides, when they utilize the coverage, the total cost of their repairs will only amount to USD 850, while the average cost of the warranty is around USD 1,200.

Nonetheless, owning an extended vehicle warranty can also be worth investing in. They give you the peace of mind to concentrate on other crucial matters since you won’t need to worry about repairs.

They Can Be Customized Fit Your Needs

Dealerships usually offer numerous warranty options to choose from. For instance, if you aren’t interested in a costly bumper-to-bumper warranty, you can go for powertrain instead. Besides, you can decide on the length of time you want the warranty to last.

How to Choose the Bests Extended Warranty

When choosing an extended warranty to invest in, there are numerous aspects you may want to consider. And these include:

Understanding Your Provider

Before considering an extended warranty, you ought to quickly acquaint yourself with what’s covered. There’s a huge difference between an extended warranty provided by the manufacturer on a new vehicle and those warranties offered by third parties.

As opposed to warranties offered by the original manufacturers, extended car warranties don’t usually cover all repairs. So, try finding out what the dealership provides before you can make your purchase.

Finding out Where the Repairs Are Made

Part of understanding the warranty is knowing who’s offering it and where the car repairs can be done. Typically, the warranties provided by the manufacturer mean that you can always have repairs performed at any dealership which sells the brand. Extended car or third-party warranties might restrict you to having your vehicle repaired at a specific dealership.

Assessing Repair History

If you’re buying a Honda Civic, which is popularly known for its outstanding reliability, you may not need to purchase the extended coverage. However, if it’s a 200 Range Rover car that you intend to buy, getting an extended warranty is a must-have. This is because the vehicle doesn’t offer so much reliability and will, therefore, require frequent repairs.

Being Patient

Don’t feel pressured to buy an extended car warranty. Take your time and find something that’s perfectly suited to your particular needs.

Depending on the type of car you’re purchasing you could have several months or even years to make an informed decision.

Evaluating Repair Costs

Sometimes it isn’t just about reliability, but the cost of repairing ordinary car parts. Repairing air suspension in a BMW station wagon, for instance, can cost you thousands of dollars.

So, be sure to conduct extensive research on the car as well as the warranty itself. If you’re planning to purchase a third-party extended warranty, consider checking online reviews for ratings before you can make your final decision.

The Bottom Line

A VW extended warranty offers an incredible way for you to escape those hefty financial expenses associated with car repairs. Even more, they give you peace of mind when you’re behind the wheel. However, it’s essential that you carefully evaluate your needs before making your final choice. Check what the plan covers, the length of time, as well as the cost. From there, you can then pick a cover that’s perfectly suited for your personal needs.

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