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How Does Extended Auto Warranty Work?

by | Jun 25, 2022

How Extended Warranties Work

Extended auto warranties are a protection policy that can help cover the cost of repairs or replacements for your vehicle.

These policies are sometimes purchased when you buy a new or used car, and they can cover anything from mechanical failures to cosmetic damage.

Extended warranties added to a used car can be a great way to keep the vehicle running smoothly.

If you’re considering purchasing an extended warranty for your car, it’s essential to understand how they work and what they cover.

This article will give you a detailed overview of everything you need to know about extended auto warranties.

What is an Extended Auto Warranty?

An extended auto warranty helps cover the cost of repairs or replacements for your vehicle.

These policies are typically purchased when you buy a new or used car, and they can cover anything from mechanical failures to cosmetic damage.

Both car manufacturers and third-party companies offer extended warranties, and they typically last for one to five years and many tens of thousands of miles.

Some extended warranties even offer coverage for up to 10 years.

Where to Get an Extended Warranty

Warranties can be purchased from dealerships, automakers, or independent warranty companies.

Independent, third-party companies usually offer the most comprehensive coverage for the broadest range of vehicles.

The price and coverage of the warranty will vary depending on the company you purchase it from.

Your vehicle’s make, model, age, and condition can also play a part depending on the policy.

Shop around online today to find a provider that can meet your needs.

What Do Extended Warranties Cover?

Most extended warranties cover the more significant components of your vehicle like the engine, transmission, and electrical system.

The two main types of warranties are powertrain and bumper-to-bumper.

A powertrain warranty covers the parts of your car that make it move, while a bumper-to-bumper policy covers everything else.

Some also cover things like air conditioning, brakes, and suspension.

Typically, items that wear out over time, like batteries and tires, are not covered.

Consumable items, like oil and filters, are usually only covered if they break due to a mechanical failure.

There are a variety of extended auto warranties that offer coverage for consumables and issues that arise from driver error.

More premium warranties will even go as far as to cover things like towing and rental car reimbursement.

In general, the more coverage an extended warranty offers, the more expensive it will be.

How to Process a Claim Under an Extended Warranty

If you have a problem with your vehicle covered by your warranty, you will need to take it to an authorized repair facility.

It is made very clear which facilities are authorized and which are not by the warranty companies.

You will need to bring your car, the extended warranty contract, and your ID.

The repair facility will then diagnose the problem and contact the warranty company to get authorization for the repairs.

Once everything is approved, the repairs will be made and you will only be responsible for any deductible that may apply.

Who Finds the Mechanic Under an Extended Warranty?

In most cases, you will be able to take your vehicle to any licensed repair facility that you choose.

Some warranty companies may have a list of preferred or approved repair facilities, but you are not required to use one of these if you don’t want to.

You may also be able to take your vehicle to the dealership where you purchased it for repairs, but this is not always the case.

In extreme cases, if your mechanic does not work with warranty companies, you may have to cover the cost of the repairs out of pocket and provide invoices and proof of payment for reimbursement from your extended warranty provider.

Be sure to check with your warranty company to see what their policy is on repair facilities.

Who Pays the Mechanic Under an Extended Warranty?

Once the repairs are authorized, the warranty company will pay the repair facility directly for the covered repairs.

Having an extended warranty professional taking care of the financial aspect of a mechanical repair can be an incredible source of anxiety relief.

Many people find it very uncomfortable haggling for a reasonable price or being expected to know the value of parts or how long repairs will take.

With a warranty service, you will only be responsible for paying the required deductible and, in most cases, nothing else.

In the slim chance your situation demands a different approach, and you have to pay upfront, you will need to submit a claim to the warranty company along with your receipts to be reimbursed.

What Are the Costs of An Extended Warranty

Warranties will typically cost anywhere from a few hundred to a few thousand dollars.

The cost will differ based on the make and model of your car and the coverage you pick.

The same coverage on a new car just off the lot would be much less expensive because there’s less risk involved.

A 3-year/36,000-mile warranty on a used car already driven 30,000 miles might cost $1,800.

Before the company offering the warranty begins to pay for repairs, most extended warranties have a deductible of $100 or $250.

The deductible amount is completely based on the agreement you have with your extended warranty provider.

You’ll have to decide if you want a higher deductible, which means you’ll spend less each month.

A bigger deductible will usually lower your monthly payment, but a smaller deductible might raise it.

Some companies may offer discounts if you purchase your warranty when you buy your car or have multiple vehicles covered under the same policy.

Extended Auto Warranties Can Give You Peace of Mind

Be sure to shop around and compare policies before you purchase one to ensure you are getting the coverage you need at a price you can afford.

There are a wide variety of extended car warranties available.

They range from the most basic to the most comprehensive.

Be sure to read the fine print and understand precisely what is and is not covered before you make a purchase.

An extended auto warranty can give you peace of mind knowing that you are covered in the event of a mechanical breakdown.

Let us know below about your experiences with extended warranties!

Thank you for reading.

About Protect My Car

Protect My Car is an extended auto warranty company. Our goal here at Protect My Car is to eliminate your worry of being financially responsible for an expensive mechanical breakdown. With our extended auto warranty, you don’t have to worry about being fully burdened with the cost of a covered repair.

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