The Cost of an Extended Car Warranty
The cost of an extended car warranty will vary depending on the coverage you want, which provider you choose and your vehicle’s reliability. A basic plan with a smaller list of covered repairs will generally cost less than a comprehensive exclusionary or bumper-to-bumper warranty, and the level of deductible you choose will also influence your premium. You can find a variety of extended warranties online, and you should always compare prices and terms to ensure you’re getting the best deal.
You should also keep in mind that an extended warranty may not cover some mechanical breakdowns, such as a faulty transmission or broken alternator. These types of repairs typically require a longer timeframe for repair and replacement than other covered breakdowns, which can lead to significant costs.
Most manufacturers offer an extended warranty with their certified pre-owned vehicles, but third-party providers like olive and CARCHEX have a wide range of coverage options for both new and used cars. Many of these plans also include perks such as roadside assistance and rental car reimbursement to help drivers save money in the event of an emergency.
If you’re planning to purchase an extended warranty for your vehicle, the first thing you need to consider is whether the warranty will cover any repairs you’ve already had done and are awaiting reimbursement for. The vast majority of extended warranties have a 30-day/1,000-mile waiting period to prevent car owners from purchasing the warranty when their car is already in need of maintenance. This is why it’s important to carry out the manufacturer’s recommended routine maintenance and keep receipts for all work performed on your vehicle, as the warranty provider will likely check these details when you file a claim.
An additional factor in the cost of an extended warranty is your vehicle’s age and mileage. Older vehicles tend to experience more mechanical breakdowns and are at a higher risk of running out of factory warranty, so the likelihood of needing extended repairs is greater. On the other hand, a newer vehicle is more reliable and will typically need fewer repairs, so the extended warranty’s cost will be lower.
Your driving habits also affect the cost of an extended car warranty, as some providers will ask how much you drive each year. A higher annual mileage will increase your chance of needing repairs and will result in a higher premium. You’ll also need to decide how much you value your peace of mind and the convenience of a warranty that includes 24/7 roadside assistance and trip interruption coverage, which can be costly if your vehicle breaks down far from home.
A final factor to consider is the reputation of the extended warranty provider. Some companies have a better track record than others, and it’s always worth looking at customer reviews before you buy. You can also research customer complaints to see which brands have more disputes over what should and shouldn’t be covered by their warranty, and make sure you read the contract terms thoroughly so you know exactly what you’re buying. If you’re purchasing a warranty from a dealer, be aware that they’ll usually include interest on your loan, which will add to the overall price of your extended warranty. cost of extended car warranty