If you have an old or high-mileage car that’s nearing the end of its manufacturer warranty, an extended auto warranty can help ease your worries about large repair bills. Depending on your specific needs, you can choose from a range of plans that cover everything from engine and transmission to air conditioning and electrical systems. These warranties typically cost about $100 a month, plus the deductible, which is the amount you must pay out-of-pocket for each covered repair.
You can find many providers, but you’ll want to consider things like customer service (including the sales process, the speed and ease of submitting claims and the quick payouts for repairs) when choosing a plan. Also, make sure the company has a good reputation and isn’t going out of business; you don’t want to be stuck with a contract that’s no longer valid.
The best extended car warranties can save you thousands if something major breaks down. They can also help you manage the stress of unexpected expenses by offering predictable monthly payments. In fact, many drivers use them to offset the higher costs of buying a new or used car, as well as to avoid large surprise repair bills and credit card debt.
Bumper-to-bumper warranties are the most comprehensive, covering all of your vehicle’s mechanical systems except for some excluded components. You can also choose a mid-tier plan that covers the major systems in your car, including the powertrain. Finally, there are wrap warranties that combine parts of other options to create a custom plan that meets your needs.
While some experts say extended warranties don’t offer much value, others note that the cost of a warranty is less than the expected cost of car repairs over the life of your vehicle. That said, it’s important to compare the cost of an extended warranty with your anticipated annual costs to ensure that you’re not overpaying for protection.
Some companies offer warranties that cover the repair costs of all mechanical issues, while others have more restrictions, such as requiring you to take your car to certain service centers or only paying out for parts that are brand new. In addition, some extended warranties have depreciation clauses that reduce the amount they’ll pay for a repaired component when the vehicle reaches a certain age or mileage.
When looking for a quality extended warranty provider, you should check online reviews and compare quotes to find the best deal. Read through the reviews and look for comments about the initial customer service experience, how easy it is to submit a claim and whether you’re likely to get paid out quickly. You should also read customer service policies and other terms to understand exactly what your coverage will entail. If you’re unsure, ask friends and family who have extended warranties about their experiences with a particular provider. Their firsthand knowledge can be invaluable when choosing a warranty to protect your investment. best extended car warranty