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Do I need an extended warranty for my car?

Matt Avatar By: Matt | Last updated February 14, 2020

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Whenever buying a new car, you may also be offered to take an extended warranty along with it by the dealer. At first glance, this may look like negative because newer ones will come with the original manufacturer’s warranty. While this might seem like another financial burden for you, you may want to consider more of its benefits for your car. 

What is an extended car warranty?

Extended car warranties are, as the name implies, an extension of the warranty for your car that comes in useful in the case of accidents and others that may lead to its damage. Repairs that are stated in the contract you will agree on will be reimbursed by the warranty provider. Think of it as a form of car insurance.

Is it worth to buy one?

However, others have doubts about buying this. This is because some buyers of extended car warranties end up not using it all. This means that the money which they will invest for future uses end up going to nothing. 

While this is a possibility, one must consider the fact that any type of insurance faces this same dilemma. After all, purchasing insurance, may it be medical or for your car, is always a form of investment that does not promise actual reimbursement. Accidents and damages may not always happen to users. 

What is covered by the warranty?

Before signing an agreement for the extended car warranty, one must always make sure that they will read every part of it. After all, contracts state the exclusive parts of the car which will be covered by the insurance. Some may cover only vital motor parts while some may have bumper to bumper coverage.

Usually, having more parts covered by the warranty leads to a higher price. This is for a good reason though. 

There may also be some limits in terms of mileage which the car goes through. Otherwise, the insurance may not cover it anymore. The limit is expanded with higher prices.

How much do extended auto insurance policies cost?

The cost of extended car warranties can be immediately set upon a personal meeting or an online transaction with a provider. You will only need to provide information about your car, details about you, and more. An instant quote is sometimes offered by services as to immediately convince customers. The most common prices range from $1,000 up to $3,000.

Should you get one?

Extended car warranties are recommended mostly for those owning cars whose life span has exceeded the original manufacturer’s warranty. This ensures that users will have the peace of mind to continue using their car without fear of sudden high costs for fixing and maintaining their cars. 

The following are the pros of owning an extended car warranty:

The following are the cons of owning an extended car warranty:

  • Possibility of not using it – Because accidents and damages for your car are not expected to happen all the time for users, some may find that their investment for additional car warranty results to nothing. This should be expected for any type of insurance though.
  • Overlapping of insurance – You may be convinced to start a subscription to the extended car warranty by the dealer upon purchase. This is not recommended, though, as any car repairs may already be covered by the original manufacturer within a period from purchase. This means that an overlap between the two insurances may occur. 
  • Limited coverage for lower plans – Typically, the plans that are most affordable by users are those that only cover the most vital parts of the car and for a low mileage limit. This is why you should be extremely picky whenever choosing an extended car warranty service. 


In the end, extended car warranties are best purchased by those whose original car manufacturer warranties are ending. It provides peace of mind for its users. With proper planning and selection for your provider, you may find yourself paying less for more.