Why You Really Need an Extended Warranty
Paying out of your own pocket for vehicle expenses can be tough. An extended warranty may be able to provide some relief. Learn more about the benefits of extended warranties, and make sure you’re properly prepared for your car’s future expenses.
What is an Extended Warranty?
An extended warranty is an extended service contract that covers the cost of certain repairs after the factory warranty has expired. Like all service contracts, the coverage can vary. Extended warranties can often be expensive if you purchase from an auto dealer. But if you shop around elsewhere, you may end up saving some money.
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Pros and Cons
No two cars are created equal, even if they’re manufactured on the same production line. Unique issues can always come up, especially for brand new vehicle models that haven’t been tested long-term yet. Unpredictability is one of many reasons to research an extended warranty.
No matter how well your vehicle is covered at the start, being prepared with a warranty once your initial one expires can be incredibly beneficial. While you may still be protected from having to pay for manufacturer recalls, an extended warranty may protect you against other unexpected repairs.
Refusing to buy an extended warranty for the sake of saving money in the short term is understandable. However, extended warranties can often help you save big in the long-term.
One of the best ways to decide whether or not an extended warranty is worth the investment is to research your car make and model. Do you see any news about your vehicle having recalls? Do you have prior experience with this car company, and do you trust their quality? In the end, deciding on an extended warranty really depends on the vehicle and your personal risk tolerance.
Are There Age Restrictions?
We’re talking about the age of the vehicle. Does an extended warranty still apply if you’re under a certain mileage? Does it still apply if you’re outside the specific time of your warranty agreement? Typical auto warranties last 3 years or 36,000 miles after the initial vehicle coverage.
If you don’t usually drive long distances, you may want to check with the dealership to see when your warranty will expire. Provide them with your VIN number and they’ll be able to verify the expiration. Make sure to plan any inspections or repairs while your warranty still covers them.
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Coverage Options
When picking the right warranty for your car, you have several different options. Corrosion warranties provide great benefits for your vehicle depending on where you live. If your state experiences frequent rain or snow, this kind of extended warranty might be a good fit for you.
A corrosion warranty can also help protect you from paying for expensive rust repairs. Most vehicle manufacturers offer rust and corrosion warranties that last no less than 3 years. Be mindful that your warranty will only kick in when the rust perforates the vehicle, meaning that it eats through the metal completely. In other words, if you’re just looking for a less expensive paint job, your corrosion warranty won’t be of any help.
Roadside Assistance, one of the most well-known extended warranties, is something you may have previously considered. But with competition from companies like AAA, not every driver needs this kind of warranty. Ask your dealer what specific benefits come with the roadside assistance they’re offering. If it includes replacing tires and towing, then it may be beneficial. But if it includes anything less, then declining this protection might be your best option.
Extended warranties may have their perks and drawbacks, but at the end of the day it all depends on your preference. Click Here for more information about extended warranties.