What’s Covered by An Extended Warranty
What Is an Extended Warranty
The primary purpose of an extended warranty is to cover major mechanical repairs.
This can include the engine, transmission, drivetrain, electrical system, and more.
More premium extended warranties will also cover the car’s entertainment system, like the radio and GPS, and the climate control system.
An extended warranty may even cover things like paint chips and dents in some cases.
Manufacturer warranties are often limited by when they can be purchased, whereas third-party warranties can be purchased at any time.
What Kind of Extended Warranties Are There?
There are two main types of extended warranties: bumper-to-bumper and powertrain.
A bumper-to-bumper warranty is the most comprehensive type of warranty available.
It covers almost everything on the vehicle, from the paint job to the electrical system.
The only things that are typically not covered by a bumper-to-bumper warranty are maintenance items like oil changes and tire rotations.
Bumper-to-bumper warranties typically last for 3 years or 36,000 miles, whichever comes first.
A powertrain warranty is less comprehensive than a bumper-to-bumper warranty, but it still offers significant coverage.
A powertrain warranty covers the engine, transmission, and drivetrain.
This type of warranty typically lasts longer than a bumper-to-bumper warranty, often about 5 years or 60,000 miles.
What Does an Extended Warranty Cover?
An extended warranty can cover a variety of repairs, depending on the specific contract.
However, extended warranties typically cover major components of the car, such as the engine, transmission, and electrical system.
Other parts that may be covered by an extended warranty include the air conditioning system, entertainment system, and GPS.
You can expect a basic warranty to cover repairs for at least 1 year or 12,000 miles.
Under a basic warranty, only the most essential components will be covered.
For example, a basic warranty may only cover the engine, transmission, and drivetrain.
More comprehensive warranties may cover repairs for up to 5 years or 60,000 miles.
These premium warranties will offer a mind-blowing level of coverage, often including things like roadside assistance, rental car reimbursement, towing, and more.
When choosing an extended warranty, read the fine print to know exactly what is and is not covered.
What Isn’t Covered by An Extended Warranty
There are some types of repairs that are never covered by an extended warranty, such as:
– Maintenance items like oil changes, tune-ups, and tire rotations
-Damage caused by neglect or abuse
-Damage caused by accidents or natural disasters
-Repairs made before the warranty was purchased
Some of these costs can be covered by different forms of plans offered by warranty companies.
A maintenance plan can cover maintenance items and damage caused by wear and tear.
Extended warranties are a great way to save money on unexpected repairs, but it’s important to know what is and is not covered before purchasing one.
What Does an Extended Warranty Cost?
The cost of an extended warranty will vary depending on the make and model of your vehicle and the length and type of coverage.
In general, you can expect the total cost of an extended warranty to be anywhere from $500 to $3,000.
The two ways you can expect to spend money on a warranty are through deductibles and monthly payments.
A deductible is the amount of money you will have to pay out-of-pocket for a covered repair.
The deductible is typically $100 or $200, but it can be higher for some repairs.
In addition to the upfront cost of the warranty, you will also have to pay a monthly fee.
This monthly fee will sometimes be referred to as a premium payment.
The monthly fee is usually between $30 and $100, depending on the length and type of coverage.
What Are the Most Commonly Replaced Parts Under Warranty?
The most common parts that are replaced under warranty are the engine, transmission, and electrical system.
Other common parts that may be covered by an extended warranty include the air conditioning system, brakes, and suspension.
Here are the costs associated with some of these repairs:
Engines: cost $3,000 – $4,000 to replace;
Transmissions: cost $2,500 – $3,500 to replace;
Electrical system: cost $1,000 – $2,000 to replace;
Air conditioning system: cost $600 – $1,200 to replace
How Many Warranty Claims Are Made Annually?
There are approximately 18 million warranty claims made every year.
Of these claims, about 60% are for repairs that cost less than $500.
Approximately 25% of claims are for repairs that cost between $500 and $2,000.
The remaining 15% of claims are for repairs that cost more than $2,000.
Auto warranties are a great way to save money on unexpected repairs.
When choosing an extended warranty, it’s important to consider the length of coverage, the type of coverage, and the cost.
Be sure to read the fine print so you know precisely what is and is not covered.
And remember, you can always purchase an extended warranty at any time, even if you didn’t get one when you first bought your car or purchased a used car with one or more previous owners.
What Is the Difference Between an Extended Warranty and a Manufacturers Warranty?
An extended warranty is a service contract that covers repairs for a specific period of time, usually after the manufacturer’s warranty has expired.
A manufacturer’s warranty, on the other hand, is included with the purchase of a new car and covers repairs for a certain period of time or mileage, whichever comes first.
Manufacturers’ warranties typically cover defects in materials and workmanship, while extended warranties may cover both defects and wear-and-tear.
Manufacturers’ warranties are usually included in the purchase price of the car, while extended warranties must be purchased separately.
And remember, you can always purchase an extended warranty at any time, even if you didn’t get one when you first bought the car or if you have purchased a used car with one or more previous owners.
What Are the Benefits of An Extended Warranty?
The main benefit of an extended warranty is that it can save you money on major repairs.
For example, if your engine needs to be replaced, an extended warranty will cover the repair cost.
Without an extended warranty, you would be responsible for the entire repair cost, which can be several thousand dollars.
Another benefit of an extended warranty is that it offers peace of mind.
With an extended warranty, you know that you will not have to pay for the repairs if something goes wrong with your car.
This can give you a sense of security, knowing that you are covered in case of an unexpected breakdown.
Feel free to read another post to learn more about extended warranties.
Thank you for learning with us!