A vehicle extended warranty can be a wise investment to protect you from expensive repair bills after your factory warranty expires. These warranties pay for parts and labor on covered repairs, leaving you responsible only for the coverage premiums and any deductible. However, not all auto warranties are created equal. Before purchasing an extended warranty plan, it’s important to compare providers and plans to ensure that the coverage you need is available at a price you can afford.
In addition to comparing costs, it’s also crucial to read the fine print and understand the terms of the contract before making a decision. For example, it’s important to consider the length of the policy and whether it includes a waiting period or a deductible. Also, be sure to review the company’s customer service policy to make certain you will be able to get any necessary help if you ever have an issue with your car.
Extended auto warranties are often advertised by dealerships, and some are even sold by the manufacturers themselves. These warranties are sometimes called “vehicle service contracts” because they cover a variety of repair issues, rather than just specific components. While these plans may seem like an easy way to avoid the hassle of car repairs, they can be costly and don’t always offer the most value for your money.
Whether you’re shopping for an extended warranty from a manufacturer or third-party provider, it’s best to choose one that offers multiple coverage options. For example, the two providers we recommend most, Endurance and CARCHEX, both have five different extended warranty plans that range from basic powertrain coverage to full bumper-to-bumper protection. In addition, you’ll want to ensure that the company is well-established and has a good track record of customer satisfaction.
Another thing to look for is if the policy has a limit on how many times it can be used. This can be an important consideration if you plan to trade or sell your vehicle in the future. Also, you should be aware that some policies require you to use only specified repair shops or require the provider’s approval before having any work done.
Many consumers are concerned about being stuck with a large repair bill after their factory warranty expires. While it’s impossible to predict when your vehicle will break down, extended warranties can provide peace of mind for drivers who want to continue driving their vehicles after the factory warranty has expired.
Beware of robocalls that are sent out by companies claiming to be your car dealer or manufacturer. These calls and emails can be scams, and are typically intended to get you to buy a vehicle service contract from the company behind them. These contracts aren’t necessarily worth the high price tag, and they often have restrictions on where you can have repairs completed or require you to wait for pre-approval from the warranty provider before having any work done.