Purchasing an insurance cover can make things easier. But purchasing an extended car warranty can make a great difference. So, what’s an extended car warranty? Why should you purchase one? Is it worth your money? This article is going to dive into these topics—giving you beneficial extended warranty information and everything in between.
Purchasing an extended warranty comes with a lot of benefits. Also, it covers several aspects. Thus, understanding what an extended warranty is vital. Purchased from auto dealerships or insurance companies, an extended warranty can shield you from unforeseen financial burdens that come in form of car repairs. Along these lines, here is all you need to know regarding extended warranties.
Extended Warranty Cover: Thing It Covers
The extended warranty period isn’t specific. The policy varies—depending on the coverage tier. With different coverage tiers, you can go for gold, silver, or platinum. While some extended warranty policies are comprehensive in nature, others are limited in terms of what they cover. It’s also important to note that some policies explicitly specify whether you are allowed to use OEM and aftermarket parts when it comes to repairs. On the other hand, some policies will overtly spell the types of auto shops that are covered.
On average, policies vary from 3-five years. Plus, each policy will specify the number of miles to be covered. Thus, consider choosing the length of time that unequivocally reflects your needs. Also, read the policy carefully. If you have any questions, don’t hesitate to ask.
The Cost of an Extended Car Warranty
The cost of an extended warranty varies widely. It depends on the miles to be covered and the length of time. Depending on time and miles, policies can go from $1,000. It can also cost you thousands of dollars. According to research, most policies costs around $1200. But it depends on the make and model of your car. So, if your model is on the higher end, expect to pay more. It’s also important to note that the cost of extended warranties is negotiable. So, be sure to put your negotiation skills to test. You might end up getting a good deal.
Pros and Cons of Extended Auto Warranties
Extended warranties come with pros and cons. Here is a breakdown regarding the pros and cons of these warranties.
- Gives you the peace of mind
- A good option for unreliable cars
- Extra expense
- Use it or lose it
Reduced Worry/Peace of Mind
The best thing about these policies is that they give you the peace of mind you require to concentrate on other important matters in life. You won’t worry about things like repairs. So, you can sit back knowing that all these expenses are catered for.
Ideal for Unreliable Cars
If you own an unreliable car or are planning to purchase a second-hand car, then an extended warranty can be a nice bet. So, if you are planning to purchase a car model that’s not highly reliable, then consider purchasing an extended warranty. It makes a great financial sense.
An Extra Expense
Besides the cost of purchasing your new car and normal insurance, you will have to fork something like $1,200 to cover the costs of an extended warranty.
Not Use, No Refund
The extended warranty money cannot be refunded. That means that if you don’t use it in repairs, the money is wasted.
Should You Purchase An Extended Warranty?
If you are buying a reliable car and you have set aside an emergency fund, then you don’t have to go for an extended car warranty. The fund will cover for things like repairs and other emergent expenses. In this case, it’s advisable to take full coverage from an insurance company to cover things like physical damage, accidents, fire, vandalism, and storm damage. It will also cover you against hitting an animal, vandalism, and damage.
However, you need peace of mind. And that’s where an extended warranty comes in. For instance, if you aren’t sure about the reliability of your car, taking an extended warranty is a good choice. Also, if you dint have the money to pay for repairs in the future, you can count on an extended warranty to shield you from this expected expense.
Alternatives to Extended Car Warranties
If you don’t want to pay for an extended warranty, consider purchasing a highly reliable car. Don’t choose second-hand cars. Go for new cars. Also, consider maintaining your car on a regular basis—preferably on a monthly basis. Also, do some research on the best car maintenance practices. It will help you get it right when it comes to maintaining your car. Even more, you can set aside an emergency fund. It will help you in case you need repairs.
Dealer versus Third-Party Extended Warranties
You can choose to purchase your extended warranty from your car dealer or third parties. Here is a breakdown on what to expect from each option:
You can purchase your extended warranty from a dealer. Alternatively, your dealer can recommend where to purchase your warranty. The best thing you should do is to do more research. Ensure that your needs are catered for in that warranty. Read through the terms and conditions. Ensure that the warranty is within your budget.
You can also purchase your car warranty from third parties. However, you should be careful. There are a lot of scams out there. So, be careful not to be duped. Do your research. Ask questions. Try to verify the warranty issuers. Don’t give in to those who tend to be sweet talkers. Don’t let anybody pressure you into buying a warranty. It’s your money. Thus, exude patience. Don’t rush. Don’t give anybody any of your sensitive information such as a bank account.
If you love it, insure it. It’s an investment you have worked hard to get. So, don’t just choose any insurance. Choose extended auto warranty coverage. The above information is all you should know regarding the extended auto warranty coverage.