How Much Does an Extended Car Warranty Cost?
If you want to protect your vehicle in the years to come, you might consider buying an extended car warranty. A car warranty offers coverage for certain types of repairs for your vehicle, including issues that affect the engine and transmission. You can buy an extended warranty from your vehicle manufacturer or through a third party, but you may want to compare extended car warranty costs before you commit to one of the plans available.
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If you're still uncertain about which kind of warranty you want, consider the cost. How much is an extended car warranty, and should you spend the money to cover the repairs your vehicle might need? Is there a way to get cheaper coverage without losing out on great coverage? As you'll see, trying to figure out how much you'll spend on an extended car warranty isn't always as easy as it seems.
The cost of a warranty depends on several factors, including the make and model of the vehicle and the company you buy the policy from. When you know how much money the extended car warranty costs, you'll have a better idea of whether this kind of policy is the right option for you.
What Is an Extended Car Warranty?
When you buy an extended car warranty, you're buying a plan to protect your vehicle. If something happens to your car, like a complete engine breakdown, the warranty covers repair expenses you would otherwise have to pay on your own. So long as the problem occurs within a specified time frame or before your vehicle hits a specific mileage cut-off, the warranty will cover your expenses.
Two types of providers offer extended car warranties: manufacturers and third-party extended car warranty companies. You'll first have a manufacturer's warranty. This is the warranty you get when you buy a new car. It has a time limit or a mileage limit. At that point, your extended warranty kicks in. Each company offers different coverage options, including coverage for towing or rental cars.
An extended warranty more commonly covers the expenses associated with repairs to the parts of the car you need to drive it. For example, the extended warranty may cover your engine or transmission, but it won't necessarily cover your tires or electronics. Additionally, the warranty might cover your powertrain, but it won't cover oil changes or other routine maintenance.
What Do Extended Car Warranties Cost?
Extended car warranties vary in price. While some extended auto warranties cost just $1000, you'll find plenty of other warranty plans available for several thousand more. Several factors come into play when it's time to assess the cost of your extended warranty:
Vehicle Make and Model
Your vehicle's make and model may make it more expensive to repair, which is why extended warranties cost more for high-end vehicles. Luxury cars are among the most expensive to cover with a warranty because repairs can be so costly. If you have a common car, like a four-door sedan, your warranty will probably be more affordable.
Vehicle Age and Mileage
The warranty provider will also consider the age of your vehicle. An older vehicle or one with higher mileage is more likely to need repairs in the near future. Newer vehicles are generally more reliable, so the likelihood that your warranty will have to pay out is slim.
Level of Coverage
The auto warranty's cost will also factor in how much coverage you'd like to buy. Several coverage options are available depending on issues that are common with your vehicle. For example, if your car is prone to transmission issues, you may want to consider holding on to a drivetrain policy that covers transmission issues. This coverage is a lot less expensive than a bumper-to-bumper option, but you won't get as much coverage.
Deductible
Your deductible is a factor you can change depending on how much you're willing to pay if your vehicle needs repairs. You can choose to lower your deductible and pay a higher fee, or you can raise your deductible and pay a lower fee. Play with this figure to make sure your warranty is cost-effective.
Coverage Length
The warranty provider also looks at the covered period, which is another factor you can change. If you choose an extended warranty that lasts five years, you'll likely spend more than if you were to buy a warranty that covers just three years. You'll also have the option to choose a mileage cap on your coverage.
Provider
The warranty provider is a key component in figuring out your extended warranty costs. For example, a manufacturer's warranty may cost more than a third-party warranty. Plus, if you buy a third-party warranty, you'll have more options to choose from. You can compare extended car warranty costs and coverage options based on your budget.
How Can You Make an Extended Car Warranty More Affordable?
If you're unhappy with the cost of the extended warranty quotes you receive, you might want to know about different ways you can make your plan more affordable. If you buy your warranty at the dealership when you finance a car, you can roll the cost of your warranty into your auto loan. This means you'll pay off the warranty each month when you pay on your car loan. While you may pay slightly more for your warranty in the long run, you may feel the impact less with monthly payments.
Which Type of Extended Car Warranty Is Right for You?
If you've been shopping for an extended car warranty, you can't get an accurate quote without deciding which kind of warranty is right for you. You can choose a plan based on what kind of coverage you think you'll need. Knowing the types of extended warranty options available ensures that you get the right coverage for your vehicle.
Bumper-to-Bumper Warranty
A bumper-to-bumper warranty is the most comprehensive option, which is why it's also one of the most expensive options on the list. This coverage is for all parts and systems in your vehicle. However, it doesn't cover routine maintenance or wear and tear damage. You can cover virtually every part of your car with this kind of extended warranty.
Powertrain Warranty
The powertrain extended car warranty covers the parts of the vehicle that make it move. This includes the engine, transmission, and power components. This is the second-highest tier when it comes to extended car warranty costs because it covers so much more than other warranty options, but it still doesn't cover maintenance costs or damage to the exterior of your car.
Drivetrain Warranty
This extended warranty includes the transmission and power components, but it doesn't cover the engine. If you know your car is prone to engine issues, you may want to opt for a powertrain warranty. On the other hand, the drivetrain extended auto warranty does offer coverage for many of the most common issues that a car will face.
Corrosion Warranty
A corrosion warranty covers damage caused to your car by rust. Some locations are more prone to rust than others. For instance, you might spring for corrosion coverage if you live near the beach. Cars in these areas often face damage when rust is left untreated.
Wrap Warranty
You can use a wrap warranty to supplement your powertrain warranty. Together, wrap and powertrain coverage provides bumper-to-bumper coverage. This could come in handy if your bumper-to-bumper extended car warranty runs out but you have a powertrain policy you'd like to keep.
How Can You Get the Most Affordable Extended Warranty?
The cost of an extended warranty is based on several factors. This means it can be hard to figure out exactly which extended car warranty company has the cheapest protection for your vehicle. One way to figure out which option is most affordable for you is to request multiple quotes. You might even request warranties from third-party extended car warranty companies in addition to your vehicle's manufacturer.
One of the biggest reasons people buy extended warranties is because a dealer persuades them to buy one. When you buy a new or used car at the dealership, the dealer might ask if you want to tack on an extended warranty as well. This might not be the most affordable warranty option, so you might want to think about your other choices first.
Should You Get an Extended Warranty from a Manufacturer?
Getting an extended warranty from your vehicle's manufacturer is often a good idea. While it may be more expensive than getting a third-party warranty, it's worth it. Factory-trained dealership technicians work on your car and provide factory parts. The catch is that you'll have to service your vehicle at a dealer. The good news is that manufacturers often allow for easy cancelations and prorated refunds.
If you like taking your car to a dealership for repairs and maintenance, a manufacturer's coverage plan could work out well for you and your car.
Should You Get an Extended Warranty from a Third Party?
If you're okay with getting aftermarket parts with your covered repairs, a third-party warranty is a good idea. These warranties are often affordable, and you can take your vehicle to any authorized shop for your repairs. Canceling your warranty may be more difficult, but you can end up paying less to have full coverage.
Should You Buy an Extended Car Warranty?
If you want to protect your new or used vehicle, an extended warranty is a great way to cover unexpected repair costs. While many people like the peace of mind that a warranty can offer, others feel like an extended car warranty is a waste of money. Ultimately, you'll need to think about the costs before you decide to extend your car's warranty, but there are some other factors to think about, including:
You May Save Money
One of the biggest benefits to buying an extended warranty is that it covers your repairs in the case of a total breakdown. Once you pay the deductible, your plan covers the rest of the bill. This can be cost-effective if your car's engine or transmission is damaged. Of course, these savings only come into play if you actually need to pay for repairs.
Your Travel Might Be Covered
If you travel a lot, you might want to buy an extended warranty that includes trip insurance. You'll have access to roadside assistance, trip interruption coverage, towing costs, and rental car reimbursement. If you have to cancel a flight or a hotel stay, your warranty may cover some of the expenses.
Let's say that you're on a 3000-mile road trip, but your car breaks down 1200 miles into your drive. Without a warranty, you might have to give up on your trip and return home. If you have a good vehicle service contract, your coverage might include a rental car, towing to a local mechanic, and the costs of some of the plans you had to cancel because of the breakdown.
You Might Not Need It
On the other hand, you might not want to buy a warranty plan if your car is extremely dependable and you don't intend to own it for years to come. A lot of people end up never using a warranty that they spent a lot of money on, which can be frustrating. When you buy a warranty, you may have to accept that you could be paying for a service that you'll never use.
You Might Not Be Able to Use It
Finally, you may not be able to use your vehicle service contract because your policy excludes the specific repair. For example, you might need a repair on your car, but the warranty provider could decide that the issue is a wear and tear problem. As a result, you're expected to pay the full cost of the repairs.
You Have to Keep Up with Maintenance
Finally, keep in mind that extended auto warranties come with some service requirements. If you're really good at sticking to a routine maintenance schedule, an extended car warranty could be a good option. On the other hand, missing an oil change or an inspection could mean that you forfeit your extended car warranty or some types of coverage. Additionally, keep in mind your policy doesn't cover scheduled maintenance.
If you're considering different extended car warranty options, you can get quotes. Compare them to see what kind of coverage you can get for your vehicle. You can also compare your quote and coverage to your car insurance policy to determine if the warranty is a good addition to your existing coverage plan. If you still have questions about extended car warranty costs, getting in touch with the provider can lead to accurate answers.
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