An extended automobile warranty (EAW) is a type of extended warranty that covers repairs to your car for a period longer than the standard manufacturer warranty. These types of coverage are often referred to as "vehicle maintenance contracts" or "vehicle maintenance protection plans". An extended warranty helps you avoid unexpected repair bills and protects your vehicle investment by guarding you against wear and tear that could lead to costly repairs in the future. An extended warranty helps you protect your car investment in the event of unexpected problems that could lead to costly repairs in the future. It is recommended to purchase an extended warranty if your car is more than 12 years old and if you have put a lot of money and time into it. If your car is expensive and you don't have enough money to pay for it, an extended warranty can help you cover the repairs until the car is paid off. When purchasing an extended warranty, there are several considerations to keep in mind so that you get the best coverage without breaking the bank. Here is what you need to know about an extended automobile warranty so that you don't end up regretting your purchase later on down the road.

Is an extended warranty worth it?

That all depends on how much time and money you have invested in your vehicle. If you have just bought a new car and have put very little time or money into it, then an extended warranty probably isn't worth it. However, if your car is old enough to warrant an extended warranty, then it may be a worthwhile investment. The amount of time and money you have invested in your car will determine how much protection it needs and what type of extended warranty coverage is appropriate for you.

What does an extended automobile warranty cover?

An extended warranty typically covers your car for anywhere from 3 to 36 months. The coverage periods differ between insurers and plans, but the majority of extended warranty plans offer a 3-month coverage period. Extended automobile warranties are typically priced to include the first 36 months of the car's life. Coverage can be as much as $1,000 per month for a high-end luxury car or as little as $100 for a low-priced economy car. The extent of coverage will vary depending on the car and the manufacturer. An extended warranty is not a comprehensive car insurance policy. It is not a promise that your car will never break down or require repairs. Rather, an extended warranty is a financial protection plan that helps you pay for repairs if they are due.

What is not covered by an extended warranty?

Most extended automobile warranties exclude the following repairs:

  • Routine maintenance - Routine maintenance such as oil changes and tire rotations are not covered by an extended warranty. Although these repairs are important to your car's health and longevity, they are not considered to be major repairs. Therefore, they are not typically covered by an extended warranty.
  • Defective materials or parts - If your car is equipped with faulty materials or parts, such as faulty wiring or a faulty airbag, then you won't have coverage. This is because the manufacturer warranty covers the standard materials and parts that come with your car. Extended warranties won't cover these types of repairs.
  • Cosmetic items - Some extended warranties cover the cost of repairing dings and dents, but many do not. Dings and dents are usually cosmetic issues that most people want to repair themselves. They are not considered to be major repairs.

The best way to save money with an extended warranty

Extended warranties are expensive, especially if you purchase one when your car is brand new. To save money when purchasing an extended warranty, shop around and see how much money your car is worth. You can also purchase a used extended warranty to save money. There are many used extended warranty companies that are willing to sell you a policy at a discounted price. You can also save money by choosing a lower coverage level. Most extended warranties offer several coverage levels that you can choose from. If you don't need as much coverage as the highest level, then you can save money by choosing a lower coverage level.

Bottom line

An extended automobile warranty is an excellent way to protect your car investment. It helps you avoid unexpected repair bills and covers the cost of major repairs that could happen in the future. Purchasing an extended warranty is a great way to save money and protect your car investment. It is recommended to purchase an extended warranty if your car is more than 12 years old and if you have put a lot of money and time into it. If your car is expensive and you don't have enough money to pay for it, an extended warranty can help you cover the repairs until the car is paid off.