If you are thinking about purchasing an extended warranty for your car, you should do plenty of research before making a decision. Prices, coverage and terms vary widely between providers. There are some companies that offer very low prices on their warranties but have very poor customer service or have hidden fees in the fine print. You should also be sure to read reviews of the company you are considering.
Buying an extended auto warranty can help to reduce financial stress, especially for those who own vehicles from unreliable manufacturers. They are often available for models that will run out of their factory warranty in a few years or so, and can cover the costs of repairs and maintenance until that time. Some people who are shopping for these warranties will be asked by dealers, auto clubs or insurance companies to purchase them, while others will find them through independent warranty providers. These warranties can also be purchased while the vehicle is still under the original factory warranty, as well as at a later date.
The cost of a car extended warranty depends on the manufacturer, model and year of the vehicle, as well as its reliability rating and your driving habits. It can also be affected by whether you choose bumper-to-bumper or powertrain protection and whether or not the car has expensive electronic features. A bumper-to-bumper plan will typically cost more than a powertrain protection plan, and the duration of the warranty will also affect the price. For example, a five-year warranty will probably be more expensive than a three-year one.
Your deductible and annual mileage will also be a factor in determining the price of an extended auto warranty. You will usually be asked to provide these details to the warranty provider, and it is important to play around with the figures to get the best value for your money. You should consider whether or not you want to pay a flat deductible, which will typically be lower than the amount of any repair, or if you would prefer to have a per-visit or per-repair deductible.
You may also be able to save money on a car extended warranty by taking advantage of discounts. These can include those for senior citizens, military personnel or government employees. You can also sometimes find online coupons for these plans, which can further decrease the cost.
When you buy an extended car warranty, you are essentially placing a bet with the warranty provider that your vehicle will not require more repairs than the cost of the warranty. If the bet pays off, you will be happy with your decision; however, if your vehicle requires costly repairs that are not covered by the warranty, you could end up paying more than if you had just skipped the coverage. Nonetheless, many warranties will pay for themselves in the first few years of ownership by eliminating the need to spend money on costly repairs. car extended warranty cost