Extended car warranties are the answer for those who are worried about the future possible costs of mechanical breakdowns and damages that their car may suffer. After all, the cost of paying for this is only covered by the manufacturer during a limited time after purchase. After this, the owner is left on their own.
Extended car warranties are a type of insurance that users can make with third-party providers or through their car dealers. However, one should note that those bought from dealers are usually more expensive as they add more for profit.
These warranties are best advised for those whose original car manufacturer warranties are slowly coming to an end. This is because, after this, any repairs for the damages your car will incur will be charged solely to you. Extended car warranties are mostly recommended for those whose original warranties are coming to an end.
Next, it provides peace of mind for its users. It is better to pay for future damages steadily and surely instead of having to do so in one large chunk. Keep in mind that those who are having inconveniences in paying monthly for a service like this are most likely those that will have problems in the case of a sudden need for emergency repairs that cost higher.
Choosing the plan for you
Extended car warranties come with a variety of forms that depends upon your budget, the included features, and the parts that are insured. Choosing the best plan for you makes all the difference.
There are several points that you should consider whenever choosing the best plan for you. These include the following:
- The coverage of the manufacturer warranty – Most of the cars that is brand new will have a manufacturer warranty with it. As a buyer, we must be aware of the duration of this as to decide when to buy the extended car warranty from a third-party. Others may also want to pursue the extended warranty while the manufacturer one is still in effect for the sake of covering other parts of the car and for additional features.
- Coverage of the extended warranty – Whenever choosing an extended warranty. You should always choose the one that fits your budget and car the best. This is because there are multiple forms of contracts for extended car warranties that range from parts covered (from vital parts only up to bumper to bumper coverages), mileage covered, and the prices attached to it.
- Deductible – You should be able to take note of additional charges which may be incurred aside from the payment for the extended warranty itself.
- Availability of repair shops - Sometimes, they can also charge you whenever you take the repairs for shops that are not included in their list.
- Features included – While the reimbursement is the main purpose of buying the extended warranty, you should still consider the features. Some of the features that they offer include roadside assistance for emergencies offered 24/7, rental coverage in the case of a car breakdown, and others.
- The flexibility of warranty – Some providers may want to have plans that are transferrable. You should ask whether you can ask for a prorated refund for the payments you will do in the case of selling the vehicle.
Things to consider
In case you are in the middle of deciding whether to get one due to decision fatigue or being given a lot of choices, you should consider a couple of things that might convince you to do get an extended warranty. These include:
- The possibility of a higher price – Usually, the price of an extended warranty for models that are older and has been used more will be higher than usual. This is because of the higher possibility that they will be damaged in the future aside from external factors. Extended car warranty providers usually keep track of the presence of the manufacturer’s warranty for your car and the number of miles that it has travelled.
- Financial security – If you feel as if paying a regular fee for the insurance of your car may be too much for your budget, it may mean that you are not prepared to pay the high prices in the case of an actual need for your car’s repair.