Extended car warranty Is it Worth? – Few car buyers are aware that they need to do their research before purchasing an extended car warranty, yet they spend a significant amount of time researching the best car brands and reading about ways to get a good deal at the dealership. . .
Usually, consumers overpay for their extended warranties, or do not invest in one, due to misinformation. Many extended auto warranty companies charge consumers more in benefits than they receive, as consumer reports surveys have noted in the past. People are often duped into buying a bad extended warranty because of the lack of transparency when it comes to car warranties.
To help you make the most informed decisions when choosing coverage, we have collected information about extended auto warranties and better options like Vehicle Repair Protection subscriptions.
What is Extended Car Warranty?
The warranty is a contract between you, the vehicle owner, and the vehicle manufacturer. In general, the manufacturer will repair or replace any necessary parts affected by a factory defect for a determined period. In general words Extended car warranty
Manufacturer’s Warranty vs. Extended Car Warranty
The manufacturers warranty (or OEM warranty) almost always comes with a car you buy. Whatever brand your car is (for instance, Chevrolet, GM, BMW, Mercedes, Audi, Chevy, Ford or Toyota), it is the manufacturer who provides the warranty.
There is a set mileage limit in most of these contracts that last two to three years. Ford, for example, offers bumper to bumper coverage 4 years / 46,000 miles on its Warranty. It’s usually necessary to take your vehicle to the dealer for repairs.
Extending your auto warranty or a vehicle service contract means extended protection for a longer period of time than what your manufacturer’s warranty offers. Dealerships sell them, but you can also buy them from independent companies, that are not affiliated with your car manufacturer.
It may be much more difficult to select a manufacturer’s warranty than a company and plan that will meet your needs. Independent companies have many other advantages, including lower prices, monthly subscriptions rather than long-term contracts, and fewer restrictions on where you can get repairs.
There are various types of coverage available under the term “extended warranty,” but technically these are called vehicle service contracts. To be considered a “warranty,” a service must be provided by the product’s original manufacturer.
What exactly does an extended car warranty cover?
In general, there are three basic types of extended car warranties and they cover different parts of your car:
|Bumper-to-bumper coverage is a type of comprehensive extended warranty that generally covers all parts and systems of a vehicle in the event of a mechanical failure. This will exclude “wear items” (eg, windshield wipers, tires, wheels, routine maintenance, etc.)|
|Powertrain coverage is a type of extended warranty that generally covers only the engine, transmission, driveshaft, differentials, and axles of a vehicle (essentially all of the engine components that turn the wheels) in the event of a mechanical failure.|
|Corrosion / rust coverage is a type of extended warranty that generally covers premature deterioration of a vehicle’s sheet metal.|
Your vehicle is also protected with additional coverage such as key replacement, tire replacement, and technology coverage (navigation, Bluetooth, audio systems, etc.).
Additionally, some warranty providers offer helpful services like 24/7 roadside assistance and repair shop assistance, which means that the warranty provider deals directly with the repair shop without you having to pay the bill up front or negotiate prices. Despite three out of four Americans being nervous about dealing with the repair shop, this is a great incentive for extended auto warranty customers.
There are no laws requiring extended car warranties as there are for car insurance. However, they can make a huge difference when it comes to protecting your wallet. It is often purchased to cover the cost of repairs, which tend to be unexpectedly large.
According to a AAA survey, 33% of Americans would have to go into debt to cover a sudden car repair. . . Because of the current state of the economy, it is very likely that this number has increased since the survey was conducted. Consequently, an extended warranty can save a lot of lives. By paying for repairs on your credit card, using your credit card as a payment option, or borrowing from family or friends, you can keep your car running and on the road.