When you buy a brand-new car or one that has low mileage, chances are that it might be covered by the automaker’s warranty. This warranty obliges the manufacturer to cater for the expenses of the specific repairs if something goes wrong. You can acquire an extended car warranty to extend the warranty duration provided by the manufacturer. This warranty can be of great importance especially if your car has high mileage or it’s approaching the expiry of the manufacturer’s warranty.
What Does an Extended Car Warranty Cover?
Manufacturer’s warranties are designed to cover for certain repairs in the event of a breakdown during the set period. It’s important to note that warranties vary from car to car based on the price of the vehicle being covered. Nonetheless, if you’re bothered about the dependability of the car, the cost of repairs or are looking for an additional coverage, then purchasing an extended warranty coverage is all you need. Various types of used car warranty apply to certain parts of the car, but they normally cover the repair expenses of parts and labor costs during the specified timeframe or number of miles agreed upon minus a deductible. Here is what you need to know:
•Powertrain warranty: This type of warranty provides cover for engine, transmission, and drivetrain, usually for a period of 5 years or 60,000 miles.
•Bumper-to-bumper warranty: This comprehensive warranty provides cover for any flaws in the vehicle for a duration of 3 years or 36,000 miles.
•Drivetrain warranty: This plan provides cover for certain components such as transmission, axles, drive shaft, wheels, and differentials for a period not exceeding five years or 60,000 miles.
•Corrosion warranty: This type of warranty provides cover for intensive rust damage and other corrosion resulting from environmental elements such as salt and rain.
How Much Does an Extended Car Warranty Cost?
More often than not, extended warranties cost between hundreds to thousands of dollars per year, but you will probably pay in thousands.
Similar to car prices, you can bargain the cost of an extended warranty. However, even if you manage to negotiate the price down, you may want to completely avoid the extended warranty, since it costs more than out-of-pocket repairs. In addition, you might be required to pay a deductible for individual repairs, which may cost as high as $500 for every repair.
Are Extended Car Warranties Worth the Investment? Ask Yourself these Critical Questions.
How Long Does the Warranty Last?
Every warranty has its own specified period or mileage limit before it becomes invalid. For instance, powertrain warranties have a mileage limit of 60,000 miles upon which they cease to be valid.
How Does a Manufacturer’s Warranty Differ from the Extended Warranty Coverage?
Warranties offered by the automakers cover specific problems with a new vehicle for a given period of time or miles. If the manufacturer’s warranty does not provide adequate cover for your needs, then you can purchase an extended warranty for an all-inclusive coverage of electrical and mechanical defects.
What is Included in the Coverage?
Most extended car warranties provide cover for roadside services, towing and rental car reimbursement if you need them in conjunction with car repair. This warranty also provides cover for sensitive parts of the car including the battery of an electric vehicle.
Where to Find Extended Car Warranties
If you’re on the market for an extended car warranty, simply contact dealerships to weigh the quotes. Always avoid buying an extended warranty from unscrupulous providers, especially those done by phones as many are scams.