Extended auto warranties are designed to provide protection beyond the manufacturer’s warranty.
When you’re shopping for an extended warranty, it’s important to understand the different coverage options available and the factors that can affect the price.
In this article, we’ll walk you through everything you need to know about buying an extended auto warranty.
What is an Extended Auto Warranty?
An extended auto warranty is a service contract that covers repairs or replacements for your vehicle after the manufacturer’s warranty expires or is used during a manufacturer’s warranty to expand the scope of coverage.
These warranties can be purchased from manufacturers, dealerships, or third-party providers, sometimes known as auto service contracts or coverage plans.
Extended warranties typically cover your vehicle’s major components, such as the engine, transmission, and drivetrain.
The coverage you get with an extended warranty will depend on the provider and your plan.
Where Can You Buy a Warranty?
You can purchase an extended warranty from the manufacturer, dealer, or a third-party provider.
If you’re buying a new car, your manufacturer will likely offer an extended warranty as an add-on purchase.
Sometimes dealerships will have local coverage where they perform a small sample of services on location.
Purchasing an extended warranty from the dealer is usually more expensive than other options because dealerships tend to mark up the price.
Third-party providers offer a wide range of coverage plans that can be customized to fit a driver’s needs.
This is a big difference from the warranties offered by manufacturers, which cover a car no matter the owner’s driving habits or specific needs.
Protect My Car offers new and used car extended warranties, starting at $350 per year.
What Factors Affect the Price of An Extended Warranty?
The three main factors that affect the price of an extended warranty are the age of your vehicle, mileage, and type of coverage.
Older vehicles or those with higher mileage will typically be more expensive to cover because they’re more likely to need repairs.
The type of coverage you choose will also affect the price.
For example, a powertrain warranty covering the engine and transmission will be less expensive than a full coverage warranty covering all major components.
You can get a quote for an extended warranty from Protect My Car online in less than two minutes.
What to Look for in an Extended Auto Warranty Provider
When you’re shopping for an extended auto warranty, there are a few things you’ll want to keep in mind.
- You’ll want to make sure that the provider is reputable and has a good reputation for customer service.
Try and read some reviews from across the internet.
- Consider asking about how the warranty provider handles a vehicle repair.
Do they choose the mechanic?
- You’ll also want to read the fine print of any policy you’re considering to understand who is responsible for what and what’s covered and what’s not.
- Finally, you’ll want to get quotes from multiple providers to compare prices and coverage options.
What Will an Extended Auto Warranty Cost?
The cost of an extended auto warranty will vary depending on several factors, including the make and model of your vehicle, the provider you choose, and the level of coverage you need.
You can expect to pay between $500 and $2,000 for an extended auto warranty.
However, some plans may cost more or less depending on the abovementioned factors.
A complete extended warranty plan with many added benefits can cost a pretty penny.
Still, it will provide peace of mind and cover practically all repair and maintenance costs.
How to Choose the Right Extended Auto Warranty for You
When choosing an extended auto warranty, it’s essential to consider your needs and budget.
If you’re looking for the most comprehensive coverage possible, you’ll want to choose a plan with a higher price tag.
However, if you’re on a tight budget, you may need to sacrifice some coverage to get an affordable policy.
It would be best if you also considered how long you plan on keeping your vehicle.
If you’re planning on selling it soon, you may not need as much coverage as someone who plans on keeping their car for many years.
No matter what your needs are, there’s an extended auto warranty that’s right for you.
When shopping for a policy, compare quotes from multiple providers.
Some Added Bonus Fine Print of Warranties
There are two main types of extended warranties: bumper-to-bumper and powertrain.
Bumper-to-bumper coverage is typically more comprehensive, covering repairs for the most significant components of your vehicle.
Powertrain coverage is limited, only covering repairs for the engine, transmission, and drivetrain.
Bumper-to-bumper warranties will cover repairs for air conditioning, audio system, brakes, paint, upholstery, and more.
There is no limit to the level of coverage available under the bumper-to-bumper umbrella.
Powertrain warranties are very straightforward and only cover repairs for the engine, transmission, and drivetrain.
Most extended warranties will have a deductible that you’ll have to pay when making a claim.
This is typically between $100 and $200.
The deductible is the money you’ll have to pay out of pocket before the warranty coverage kicks in.
For example, if your car needs a new engine and the repairs will cost $5,000, you’ll have to pay the first $200, and the extended warranty will cover the rest.
Most providers will also limit the number of claims you can make in a given year.
This is typically two or three claims per year.
Buying and Selling a Car with A Warranty
It’s also important to note that extended warranties are not always transferable.
If you sell your car, the new owner will usually not be covered by your warranty.
Some providers will allow you to transfer the warranty for a fee, but others will not.
Be sure to check with your provider to see if your warranty is transferable before selling your car.
There’s also the potential for an existing warranty to raise the selling price of your car.
An extended auto warranty can be a great way to protect yourself from expensive repairs.
They may also cover electrical components, like the stereo or navigation system, and sometimes even cosmetic damage.
The coverage you get with an extended warranty will depend on the provider you choose and the level of coverage you purchase.
An extended auto warranty can give you peace of mind on the road.
Choose wisely and get the coverage that’s right for you.