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What Are Extended Vehicle Warranties and How Useful Are They?

by | Aug 18, 2022

How Useful Are Extended Vehicle Warranties?

Those frustrating scheduled vehicle maintenance fees are annoying, but they’re inevitable.

They also happen to be one of the best things about extended auto warranties.

If you’ve spent any time looking into auto warranties or the cost of maintaining your vehicle, you know that no matter how reliable your ride is, it will need some maintenance from time to time.

In many cases, those checks will cost more than the value of your car.

That’s where extended warranties come in handy — they can save on costs while providing peace of mind and security when you have to take care of repairs.

Extended auto warranties can help by covering all or most maintenance costs for an extended period or indefinitely, depending on the plan.

Read on for more details about this useful automotive accessory and how it can help you maintain your vehicle without breaking the bank.

What Are Extended Warranties?

Extended warranties, also known as extended vehicle warranties, come in different forms, but they all provide protection for your vehicle during the original or extended warranty period.

They can be purchased by an individual, dealership, or aftermarket warranty provider.

They can cover things such as engine parts, transmission repairs, and even the entire replacement of your car.

They’re designed to act like a safety net when you need to repair or replace your vehicle and don’t have enough money to do so.

If you’re wondering how the costs break down, they usually charge your bank account or card every month with some plans covering everything from driver training classes to tire replacements.

Extended warranties are extremely popular because of their flexibility and ability to save on the unexpected costs of owning a car.

How Does an Extended Warranty Work?

Extended auto warranties are a type of protection coverage that covers the maintenance cost for an extended period.

The warranty can cover the cost of parts and labor for the entire life of your vehicle or a predetermined period, depending on the plan.

There are two ways to get an extended auto warranty: you can purchase one from the dealership upfront or buy an aftermarket warranty.

For those, each option has its own set of pros and cons.

If you purchase a warranty, you may be eligible for discounts since the provider will negotiate with the repair facility on your behalf.

Additionally, when purchasing an extended auto warranty from the dealership upfront, there is typically a length limit for how long that warranty lasts.

It could be anywhere from six months to six years.

That’s not always the case when purchasing an aftermarket warranty.

There may be no limit on how long that protection lasts.

In some cases, consumers also need to prepay their coverage in order to use their purchased extended warranty; this is not always possible with policies purchased through a vehicle’s manufacturer because they are part of the standard policy and cannot be bought separately.

Is an Extended Auto Warranty Worth it?

How useful are extended warranties?

In many cases, they’re very useful.

Extended auto warranties can help you avoid costly and time-consuming maintenance checks by covering repairs for a set period of time or indefinitely, depending on the plan.

You might also want to consider an extended vehicle warranty if you’re leasing a car because it can provide protection that you wouldn’t otherwise have without making substantial monthly payments.

A definitive answer will depend on your individual needs, but an extended auto warranty is worth considering as long as it addresses your specific concerns.

There’s no point in spending money on something that doesn’t work for your individual needs and budget.

Make sure to consider the benefits’ value before deciding whether or not an extended auto warranty is right for you!

Defining Terms

Extended vehicle warranties are just what they sound like: a type of extended auto protection that covers the cost of vehicle repairs at a specific time or indefinitely.

They only cover the cost of repairs, not any accidents associated with your car.

Typically, these plans have periods of coverage that last anywhere from one to three years.

This is often referred to as “coverage duration”.

Typically, terms and conditions vary with each plan, but let’s break down some of the standard features you should look for when shopping for one:

The level of coverage.

In general, plans can range from $700-$3000/year, so choose one depending on how much coverage you want and how much you drive your vehicle.

The extra protection it provides.

Many plans include an accident protection policy that covers added costs related to car malfunctions.

Most warranty companies offer payment methods through PayPal or credit card payments and issue refunds after cancellations.

The length of time your plan will last depends on your choice of coverage duration.

Plans typically range from one year to five years.

Types of Coverage for Your Vehicle

There are two types of extended auto warranties: 

1. Extended Warranty Plans: These plans work by paying for faulty parts or equipment repairs.

2. Vehicle Maintenance Plans: These plans can cover the expense of car maintenance, typically not including any other damages or accidents.

The difference between these plans is that extended warranty contracts cover all the costs associated with repairing your vehicle when a fault arises, while vehicle maintenance plans only cover expenses of agreed upon parts that wear out due to use.

If you’re looking for a warranty company that will cover both, look for an extended warranty company, like Protect My Car, that offers a vehicle maintenance plan as an additional option.

Popular Extended Warranties

One of the most popular types of extended auto warranties is the vehicle protection plan.

This type of plan provides coverage for a specific amount of time and can often be purchased by those with poor credit.

Another popular type of plan is the subscription-based extended auto warranty, which offers benefits like roadside assistance and new car replacement.

When you purchase an extended auto warranty, you are guaranteed that your vehicle will be covered should anything happen to it.

You’ll also be able to rest assured in knowing that what happens with your vehicle becomes the responsibility of the company rather than your own personal risk.

You’ll also find other types of plans that may provide coverage for less than two years or so, but they offer more advanced features like zero deductible and interest-free payment plans.

You’ll also find some plans that come with a low monthly cost as long as you make one single payment every month or year.

Those who want to pay off early can usually opt-out at any time without penalty.

What to Look For in an Extended Warranty

So how do you know if an extended warranty is a good investment for your vehicle?

First and foremost, consider the cost.

Many extended warranties will come with a deductible (the amount of money that must be paid out-of-pocket before any coverage kicks in).

For example, if you’re looking to buy an extended warranty on a Toyota Camry, it may cost around $1,500 to get the warranty.

The majority of car owners will have to pay this deductible before the warranty covers anything.

Another thing to consider would be what the coverage includes.

What kind of repairs are included? If you’re looking at getting an extended auto warranty on your Honda Accord, you might want to check out which types of repairs are covered before buying it.

Look into what other perks come with these warranties, too; some will offer zero deductibles, while others may offer discounts on registration fees for your car.

These could save you money in the long run!

Bottom Line

Extended warranties can cover repair costs while providing peace of mind and security for when you have to take care of repairs.

The cost of repairs on your vehicle can add up quickly.

With an extended vehicle warranty, you can save hundreds or thousands of dollars on repairs over the life of your vehicle.

Contact Protect My Car today to learn what options are available to you.

We can warranty any car at any age or mileage.

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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