The cost of an extended warranty on a car can be significant, especially if you roll it into your loan. But you can get a good idea of price ranges by getting a quote and looking at sample contracts.
Think about whether a costly repair bill would keep you up at night. If so, the extra peace of mind provided by an extended warranty may be worth it.
Peace of Mind
A quality extended warranty can offer you peace of mind. This is because the policy will cover the cost of unforeseen repairs. The premiums are often very affordable, and it will help to ease the stress of vehicle ownership.
It will cover the cost of a wide variety of repairs and replacements, including engine and transmission failure, electrical components, technology features and more. Some plans even cover towing, hotel expenses and rental car fees.
Many reputable extended warranty providers have nationwide service networks. This means that you can take your car to any authorized repair facility, regardless of where you live. This will save you the hassle of finding a local mechanic and it will ensure that all covered repairs are completed quickly.
You should also make sure that the plan you choose covers unforeseen repairs, rather than maintenance and wear items. A reliable provider will clearly spell out the coverage terms and conditions. You should also research the reputation and credibility of the extended warranty provider.
Money Savings
Depending on your driving habits and the make/model of your car, an extended warranty can save you money in the long run. Those who tend to drive their cars into the ground might want to consider an extended warranty, especially since their factory warranties will likely expire before they can get a new vehicle.
However, it’s important to shop around for a provider that offers flexibility and multiple coverage options. Some companies also require pre-approval or reimbursement for repairs, which can be stressful and inconvenient.
Regardless of the costs, extended warranties can provide peace of mind and are worth it for many people. If you’re considering an extended warranty, be sure to read reviews and compare prices. Choose a company like Clutch Protection Plans that provides transparency and a no-haggle, low-price every-day guarantee. This will help you find a provider that suits your needs and budget. If you’re still unsure, talk to your dealer or trusted third-party provider for more information.
Convenience
There’s a certain amount of convenience that comes with having an extended warranty on your car. For instance, many warranties cover the cost of roadside assistance. If your vehicle breaks down, the provider will send a tow truck and pay for hotel bills and meals. The warranty will also pay for a rental car while your car is in the shop.
You’ll want to do your research before you buy an extended warranty. Prices, terms and coverage vary widely between providers. Some will only cover certain parts or exclude some items like normal wear and tear and emissions-related components. Some will only cover repairs if you take your car to their approved repair shops. Others may require you to submit receipts and invoices for reimbursement.
The key to making the decision whether an extended warranty is worth it or not depends on how long you plan on keeping the car. If you trade in your vehicle every two to three years, an extended warranty isn’t worth it. However, if you plan to keep the car for several years and run out of factory protection, it could save you thousands in repairs and hassle.
Reliability
Purchasing a car extended warranty is a big decision and it is important to consider the cost, your risk tolerance and your vehicle’s reliability. A good way to evaluate a warranty provider is to look at their reputation in the industry, customer reviews and plans they offer. Bumper-to-bumper warranties are usually comprehensive, but they won’t cover everything (like oil changes, new tires and roadside assistance).
Adding an extended warranty may be worth it if coming up with the money for an unexpected repair bill is a concern for you. Just be sure to ask about any deductibles that will need to be paid before the warranty provider will reimburse you. Also, be aware that some companies will take weeks or even months to process reimbursements, which can put you in a financial bind. Check out our Best Car Warranty Providers for more information. We’ve evaluated and ranked them based on their reputation, plan options, customer reviews, deductibles and terms.is extended warranty for car worth it