It’s no secret that the average cost of car ownership over the first 5-10 years is about $10,000. However, many car buyers are hesitant to invest that much money upfront without knowing whether their car will break down. They want to protect themselves from the risk of having to repair their car down the road, but they aren’t sure if extended warranties are worth the added expense. Depending on your car, price, and risk tolerance, extended warranties can be a great way to protect your investment while also covering your bases if something goes wrong. For example, if you buy a used car that might have some wear and tear, you can purchase an extended warranty with it to ensure that you can get it fixed if anything goes wrong over time. Or if you purchase a new car, you can buy an extended warranty to protect it from defects that come with time. It all comes down to how much you trust your vehicle. If you don’t think it will break down after five years, then an extended warranty probably won’t be necessary. But if you think that could happen, then an extended warranty could be a great way to protect yourself from those risks and make sure your car lasts for years to come.
What is included in an extended warranty?
Depending on the provider and contract you select, an extended warranty will cover a wide range of different parts and services. For example, if you’re purchasing a new car and you want to make sure that it has a long-lasting warranty, you might want to look into purchasing an extended warranty that covers everything from engine repairs to transmission replacements. Some providers even offer coverage for things like alternative fuel and hybrid cars.Depending on the type of warranty you select, these products can vary greatly in cost and coverage. One of the most important factors when shopping for an extended warranty, however, is to make sure you understand exactly what is covered. Because different providers offer different coverage levels, it can be easy to get confused if you don’t know what’s included in each plan. To make things simpler, we’ve compiled a list of common benefits you can expect to see in an extended warranty below:
Covers your car from wear and tear damage. Many extended warranties cover normal wear and tear that comes with normal use, such as dents and scratches, as well as damages to your tires and wheels. If you want to protect your car against more serious wear and tear, like hail damage or accidents, you should look into getting a more specific type of coverage.
Covers parts and repairs that are not included in normal maintenance. If you want to protect yourself against costly repairs, you might want to consider purchasing an extended warranty that covers things like oil changes, tire rotations, and more. These products are often designed for people who don’t regularly maintain their vehicles. If your car requires maintenance, you can usually find a mechanic who can do these things for a cheaper rate.
Covers parts and repairs if your car is inoperable. While you might not need to use an extended warranty if your car breaks down, it can be good to know that you still have coverage in case of an emergency. Some extended warranties will cover repairs if your car breaks down, and they may even cover towing costs if you need to get your car to the shop.
Covers roadside assistance. Extended warranties are designed to protect you in the event of an accident or breakdown, but they won’t help you if your car breaks down in the middle of a trip.
Covers your fuel and gas. Extended warranties can cover the cost of gas and provide a discount on fuel, making it cheaper to drive your car.
Covers any damage to your car from hail, floods, and hurricanes. Extended warranties can help to repair or replace your car if it’s damaged by things like hail or hurricanes. These types of storms are often difficult to insure against, so an extended warranty can be a great way to protect your investment.
Should you purchase an extended warranty?
The best way to know if you should purchase an extended warranty is to understand your risk tolerance and how much risk you feel comfortable taking on. If you’re not sure how much risk you can handle, consider talking to an insurance agent who can help you figure out what you’re covered for in the event of an accident. If you’re willing to accept a little risk, an extended warranty might not be necessary. If you feel like your car is of high quality and you don’t plan on using it for long, you might not need to buy an extended warranty. However, if you have a higher risk tolerance and want to protect yourself from some of the common issues that arise with older cars, an extended warranty could be a great choice.If you’re shopping for a car and want to protect your investment, an extended warranty can be a great way to make sure your car lasts for years to come.