When you buy a car, it’s easy to assume that everything about it is secure and solid. If something goes wrong, though, you might not be able to afford the repair bill. Extended car warranties help you protect yourself against unexpected mechanical issues that could potentially put you in a financial hole. In addition to covering the initial purchase price of your car, an extended warranty can also provide coverage against additional costs like repairs, regular maintenance, and even rental fees if your car breaks down during a trip. Depending on the type of coverage you choose, an extended warranty might even come with a money-back guarantee if your car breaks down and needs repairs on the same day it was purchased. However, there are many different types of extended warranties available, and not all car insurance policies offer coverage for this type of protection.

What are the different types of extended warranties?

There are several different types of extended warranties that are offered by car manufacturers and dealerships. Each type has a slightly different focus and provides different types of coverage. A basic extended warranty will cover major components within the vehicle, like the engine or transmission, while a full-vehicle warranty might cover everything from the engine to the tire pressure sensors. In most cases, you’ll pay a set amount each month to remain under warranty coverage. A roadside assistance warranty will provide you with assistance if your car breaks down outside of the manufacturer’s warranty period. Most extended warranties also include a GPS tracking device that will allow you to see where your car is at any given time.

What should I look for in an extended warranty?

The first step in finding the right extended warranty is to determine what type of coverage you need. For example, if your car is 10 years old and in great condition, you might not need any additional protection. On the other hand, if you just purchased a car with a lot of extras and don’t have much money saved up, you might want a protection plan. If you’re not sure where to start, you can review the table below to get a better idea of what to look for when shopping for an extended warranty. Make sure you factor in the cost of repairs, maintenance, and any additional fees that might apply. You can also ask the salesperson at the dealership or manufacturer’s representative about what makes their product stand out from others.

When is a standard car warranty better than an extended warranty?

When you buy a car, the manufacturer will often offer a standard warranty that covers the car for a certain period of time. Depending on your car and where it was purchased, this coverage can vary from one year to 10 years. Typically, the standard warranty will cover the original purchase price of the car and offer minor repairs like tire replacements. Standard car warranties are generally less expensive than extended warranties, but they also provide less coverage. If your car breaks down and needs extensive repairs, you’ll have to pay out of pocket. The best way to determine if a standard car warranty is best for you is to compare the coverage and cost of each option.

How much does an extended car warranty cost?

The price of an extended car warranty will vary depending on the type of coverage you choose. The best way to determine what you should expect to pay is to look at the current pricing options offered by major car manufacturers and dealerships. Expect to pay between $500 and $2,000 for a basic extended warranty. Full-vehicle extended warranties generally cost between $1,000 and $3,000. You can also add on roadside assistance or GPS tracking for an additional fee. Before you sign up, it’s important to read the fine print so you don’t get stuck paying for coverage that you don’t need.

How to decide between a standard and extended car warranty

In most cases, it’s best to get an extended warranty. A standard warranty only protects you for the original purchase price of the car. If your car breaks down and needs repairs, you’re responsible for the cost of those repairs. Many people rely on their cars to get to work and to run errands, so it’s important to have a reliable vehicle. Extended car warranties cover the cost of repairs for as long as you own the vehicle, so they can significantly reduce the financial risk of a major mechanical issue. To determine if an extended warranty is right for you, ask yourself these questions:

Why is a car warranty important?

A car warranty is important for a variety of reasons, including peace of mind and financial protection. A car warranty can help cover the cost of unexpected repairs, which can save you a lot of money and stress. If your car breaks down, you can schedule an appointment with the dealer or a technician at a repair shop with your warranty in hand. By having this protection, you don’t have to put off getting your car fixed and can focus on other important tasks.


A car warranty is an important part of owning a vehicle. It helps protect you from unexpected repairs and can cover the initial cost of your car. If you’re not sure which type of warranty is right for you, this article can help you understand the different types of coverage available and how they work. Next, you can use the tips and tricks provided to find the best car warranty at a price that fits your budget.