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An Easy Guide for Choosing an Extended Car Warranty Service

Kelly Avatar By: Kelly | Last updated May 8, 2020

extended car warranty guide woman pushing car on the road

A car is a good investment for those who frequently travel and would like to save on commuting fees. However, it is not expected to last beyond 5 years at most having no issues of some sorts. These can be attributed to a large mileage, fuel problems, component quality, and more. A car insurance is expected to pay for fixing these problems.

Extended Car Warranty

A car is expected to have a warranty available from its original manufacturer after being bought. However, after the expiration of this warranty, the buyer is expected to shoulder all the costs that will go towards repairing it.

Extended car warranties are offered by companies for users to have an available insurance even after the original manufacturer’s warranty expires. They offer a variety of contracts which gives coverage for different mileages and car models. The parts of the car that will be covered will also depend upon the contract.

Benefits of having an Extended Car Warranty

Purchasing an extended car warranty service gives you a lot of benefits. These include:

  • Flexible coverage – Depending on your budget, you may be given a wide variety of contracts to choose from. These differ in terms of the parts of the car that will be covered, car mileage, and the model of the car. This lets you have more flexibility in choosing a contract.
  • Budget friendly plans – Some extended car warranty services offer flexible payment plans for their users to fit the contract in their budget. Also, instead of having to pay a huge chunk of money for a sudden repair, the extended warranty can cover for the costs for the user to avoid sudden large payments.
  • Better vehicle maintenance – Most of the time, the worst problems that a car experiences can be because of a minor issue being ignored for too long that will eventually lead to malfunctions in the major parts. Instead of having to take your time before having a repair, users are more encouraged to make frequent visits to the repair shop which can lead to better vehicle maintenance.
  • Additional bonuses – Aside from paying for repairs done to your car, most extended car warranty services also offer reimbursements for additional needs. These include reimbursements for renting a temporary car (for those who will need it for business), paying for travel accommodation, and more. Some may also offer medical warranties which can be handy in case an accident happens on the road.
  • Peace of mind – Finally, knowing that a warranty will compensate for any payments that will be charged for a mechanical breakdown can give you peace of mind. Aside from this, it also lets you budget your money easier as you won’t be needing to allot emergency funds specifically for your vehicle.

Additional Benefits of an Extended Car Warranty

As mentioned earlier, an extended car warranty does not only give you coverage for the repair of your vehicle. Most of these services knows that some people may use their vehicle for their business or for going to their offices.

Some warranty services offer reimbursement (for a limited period) for those who will paying for a rental car service. This lets the user go back to their day-to-day activities until they get their vehicles back from the repair service.

Another perk to using an extended car warranty is emergency roadside assistance. Some warranty services offer this available 24/7. When contacted, they can give help for vehicles in need of towing, gas delivery, car lock malfunctions, and more.

Some warranty services also have reimbursements for your accommodation and food costs in case your vehicle breaks down in a place far from your home.

Common Extended Car Warranty Contracts

The contract given by the extended car warranty talks about all the parts of the car that will be covered by the insurance company. It also states the limitation in terms of vehicle type along with mileage. Usually, newer vehicles are given better deals as older ones are more commonly damaged.

These are the usual extended car warranties offered:

  1. Exclusionary Contracts – This contract lists out all the parts of the car that will not be covered by the contract. This means that most of the parts will be insured. This is also called a bumper to bumper coverage or a comprehensive coverage. Because of the amount of parts included in the contract, it is usually the priciest out of all the plans.
  2. Stated Component – This lists out all the parts of the car that will be covered. Most of the extended car warranty services has different tiers of stated components, with those higher in price covering more parts of the car. This is the most recommended for those who want to take care of their budget while still being able to cover most of the parts of their car.
  3. Power Train – This is also called as the budget plan. This is usually the friendliest in terms of cost. This is because it only covers the parts of the car that are the most important for running it (also the most expensive parts). This includes the Transmission, Engine, and Drive Axle. Sometimes, the Transfer Case for vehicles with a 4x4 all wheel driver is also included. Aside from this, some contracts also include the car’s additional components such as electrical parts, A/C, and fuel systems.

Usually, these three contract plans are offered by extended warranty services. The only difference comes with the stated component contracts which usually has different tiers in terms of covered parts and prices.

How do I register for an extended car warranty?

Applying for an extended car warranty is easy. First, visit the website of the insurance company you are eyeing. You may be asked to fill out certain forms for them to give an instant quota for you. They may also have their representatives call you to talk about their plans and recommend which one should you subscribe to. From there, you can select a contract that best fits your vehicle and your budget.

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