An extended warranty for your car can protect you from the high cost of repairs after your manufacturer’s warranty expires. However, it’s important to weigh the pros and cons of buying one to see if it’s right for your needs.
There are several different kinds of extended warranties for cars, from basic plans that cover only the most common repairs to ones that include a wide range of components, like the engine and transmission. Some even include perks, such as roadside service and rental car reimbursement. In addition to the coverage, you should also consider how long the plan lasts and what deductibles are involved.
You should compare quotes from different companies to find the best price and coverage for your vehicle. A good extended warranty provider will have positive customer reviews and a BBB rating, and it should clearly spell out what is covered in the contract. You can usually buy an extended warranty directly from a dealer, but you may also be able to find one through an auto club or car insurance company. You should avoid buying a warranty from a telemarketer who calls you, as these offers are often scams.
The cost of an extended warranty for a car can vary significantly, depending on the make and model, as well as its age. Luxury cars, for example, are more expensive to repair than smaller models, and the same goes for older vehicles. You should also consider how much you expect to spend on repairs during the time you’ll own your car. If the price of the extended warranty is less than your expected costs, it might be worth purchasing it.
Many extended warranties come with a waiting period, which can be 30 days or 1,000 miles, to prevent people from buying them the minute their factory warranty expires. This is a way to help deter fraud and to ensure the company will actually pay for any repairs that you need.
Another consideration when deciding whether to buy an extended warranty is how long you plan to keep your car. If your loan runs for six or seven years and the included warranty only covers half that time, an extended warranty can provide peace of mind. It can also reduce your stress over how you’ll afford a big repair bill down the road.
Extended warranties can be a good idea for people who have a hard time budgeting for unexpected expenses or for those who drive a car that’s not known for reliability. However, it’s not necessarily a smart move for those who want to save money or those who already have an emergency savings fund. To avoid being sold a warranty you don’t need, Consumer Reports recommends taking advantage of the free car-buying tools on our website and looking up the reliability ratings and reliability scores for each vehicle you’re considering. Those resources can help you determine which cars are worth spending your hard-earned dollars on, and they’ll also give you an idea of which brands offer the most reliable cars for the money. extended warranty for car