What is an extended warranty?
An extended warranty is a vehicle protection plan that pays for certain repairs once a mechanical breakdown occurs. It is a supplemental service agreement that is sold separately from the original factory warranty and covers a specific set of repairs that arise as a result of vehicle ownership for a specified number of miles. This plan usually begins after the manufacturer’s warranty expires, but sometimes they overlap.
An extended warranty can provide peace of mind and potentially save you money if your car needs a costly repair. It is important to research the coverage and plan offered before signing a contract. Manufacturers, as well as third-party providers, offer extended warranties, so it is important to compare the pros and cons of each option.
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What to Consider When Buying an Extended Warranty for a New Car
1. Extended Auto Warranty: Cost
Extended auto warranties can be a great way to protect your car from unexpected repairs and costs, but it is important to know how much you can expect to pay for such a service. The cost of an extended auto warranty varies depending on the level of coverage, the make and condition of your car, and the company that you purchase the warranty from. On average, an extended car warranty can cost anywhere from $1,300 to $4,600, depending on the coverage you choose. However, you can expect costs to be closer to the lower end of this range if you select a powertrain warranty, with prices ranging from $350 to $1,000 annually. When shopping for an extended car warranty, it is important to compare quotes from multiple sources to ensure you get the best deal.
2. Extended Auto Warranty: Coverage
An extended auto warranty for a new car can offer two types of coverage: inclusionary and exclusionary. An inclusionary protection plan covers only the repair costs for the parts listed in the contract, while an exclusionary contract will list the parts that are not covered and repairs for anything outside those parts are eligible for a claim.
Manufacturers may offer extended warranties, which usually take effect after the factory warranty expires. If you buy a new car with low mileage, it may be covered by a manufacturer’s warranty. This warranty makes the automaker responsible for covering the cost of certain repairs if something breaks. Third-party providers may also offer extended car warranties, with different coverage periods and coverage levels.
When comparing coverage from different providers, it’s important to compare prices and the types of coverages available. Some providers may offer roadside assistance or the use of a rental or loaner vehicle during the period that your covered vehicle is out of commission. It’s also important to read the fine details of your plan to determine if there is a deductible that must be met to utilize these services and what steps you need to take in order for the claim to be submitted and honored.
3. Extended Auto Warranty: Options
When you are in the market for an extended car warranty for your new car, you have two main options to choose from: buying from a third-party provider or buying from your car’s manufacturer. Each option has its own set of pros and cons.
Third-party providers offer extended car warranties at a lower cost than the manufacturer, although the coverage is often less comprehensive. These providers typically offer basic powertrain warranty coverage, comprehensive bumper-to-bumper coverage, towing, rental car coverage, and roadside assistance. You may also be able to customize your coverage plan with add-on options such as key fob replacement and oil changes.
Meanwhile, purchasing an extended warranty from the manufacturer can be more expensive, but you’ll be ensured genuine parts used by factory-trained technicians. Also, if you have a luxury car, you may not be eligible for third-party coverage, but you can generally still get coverage through the manufacturer. Additionally, the plans are often tailored to the unique needs of your vehicle. The downside is that repairs must always be conducted at the dealership’s repair facility.
No matter which option you choose for your extended car warranty, it’s important to spend some time comparing plans and finding out everything they include, so that you get the coverage that is best for your needs.
4. Extended Auto Warranty: Limits of coverage
An extended auto warranty for a new car will have different limits of coverage depending on the provider. Generally, coverage limits and term lengths, deductible amount, and the condition and mileage of the vehicle will be taken into consideration. Depending on the plan, coverage can include major auto repairs and parts replacements, such as engine, transmission, exhaust, starter, alternator, power train and electrical components, brakes, suspension, A/C, heating and cooling, and more. Additionally, some providers may offer coverage for pre-existing conditions and wear and tear, as well as roadside assistance and travel reimbursement.
5. Extended Auto Warranty: Repairs covered
An extended auto warranty for a new car typically covers repairs to major mechanical parts systems such as the engine, transmission, and powertrain. Depending on the provider and plan selected, additional coverage may include corrosion and rust protection, free towing, jump starts, rental car reimbursement and trip interruption coverage. Be aware that there may be a deductible that must be met to utilize these services. It’s important to read the plan details carefully to understand what is being covered, under which conditions and in which circumstances.
6. Extended Auto Warranty: Cost-per-year
An extended car warranty can cost anywhere from a few hundred to a few thousand dollars per year, depending on several factors such as the make and model of your vehicle, its age and mileage, your location, where you purchase the warranty, the plan you choose, and the deductible you choose. On average, most car owners end up paying about $600 to $1,000 per year of extended warranty coverage. However, prices can vary widely depending on the car, the coverage chosen, and any other factors that may influence the cost.
7. Extended Auto Warranty: Deductibles
When it comes to extended auto warranties, deductibles can range from $75 to $250, depending on the plan you choose. A low- or no-deductible plan will typically cost more than one with a higher deductible, as the warranty provider will be bearing more of the car repair costs. If you have a more comprehensive plan, such as bumper-to-bumper coverage, the cost of your extended warranty may be higher. Additionally, the make, model and year of your vehicle, its mileage, and the number of high-tech parts included in the plan can all affect the cost. Most extended auto warranty providers also offer the option of choosing between various deductibles on covered repairs. For example, CARCHEX provides deductibles of between $0 and $500 per car repair. Ultimately, choosing the right deductible for your extended auto warranty will depend on how much you are comfortable paying and your budget.
8. Extended Auto Warranty: Billing structure
When shopping for an extended car warranty, it’s important to understand the billing structures offered by different warranty companies. Generally, the cost of an extended car warranty depends on the make and model of the vehicle, its age, and the length of coverage. For example, a new car may be eligible for an extended car warranty that lasts up to seven years or 100,000 miles. The cost of this warranty may vary depending on the company, so it’s important to compare different providers to find the best deal.
Another factor to consider when purchasing an extended car warranty is the deductible. This is the amount you must pay out of pocket before the warranty will cover the rest of the repair cost. Some companies offer variable deductibles that can range from $0-$200 depending on the repair. It’s a good idea to check the deductibles offered by different providers to determine which one offers the most cost-effective coverage.
Finally, the coverage options of an extended car warranty are also important to consider. Some warranties only cover certain systems and parts, while others offer full coverage. It’s important to read the fine print to make sure you understand what is covered in the warranty and what is excluded. This will help you make an informed decision about which extended car warranty is best for you and your vehicle.
9. Extended Auto Warranty: Refunds
When purchasing an extended auto warranty for a new car, it is important to understand the refund policies of the provider. Most companies offer money-back guarantees for a limited period of time during the start of the plan, with the option of a full refund or having a deductible subtracted if a claim is filed early. Depending on the contract, it may be possible to transfer the warranty to a subsequent owner if the car is sold.
Manufacturer’s warranties come standard with new or low-mileage vehicles, while extended car warranties can be purchased to extend the manufacturer’s coverage. Depending on the provider and plan, an extended car warranty typically pays for certain repairs after a mechanical breakdown for an agreed upon time period and mileage. Providers like Endurance, Carchex, and CarShield offer extended warranties, with additional benefits such as 24/7 roadside assistance, rental car reimbursement, and trip interruption coverage.
When cancelling an extended car warranty, you may receive a prorated refund for the remainder of your policy. It is important to keep in mind that extended warranties are an extra expense, but they pay for themselves when mechanical issues arise and provide the freedom to enjoy driving.
10. Extended Auto Warranty: Customer satisfaction
Customer satisfaction is the measure of how well a product or service meets the needs and expectations of a customer. It is an important factor to consider when purchasing an extended car warranty because it directly impacts the quality of the service received. If a customer is satisfied with their purchase, they are more likely to recommend it to others, which can lead to increased sales and increased customer loyalty. Additionally, it can provide insight into how well the company is providing their service and how they can improve it. Ultimately, customer satisfaction is essential to any company’s success, and it should be taken into account when making a decision about purchasing an extended warranty for a new vehicle.
11. Extended Auto Warranty: Quality of service
When it comes to buying an extended warranty for a new car, there are several quality of service considerations that should be taken into account. These include the reputation of the warranty company, the coverage offered, the cost of the plan, the transparency of the contracts, and the customer experience.
Reputation is important to ensure that an extended warranty company can deliver on its promises. It is also beneficial to look for established companies with a good track record that have been in business for a long time. When it comes to coverage, it is essential to look for a provider that offers a variety of plans with term limits, exclusions, and added benefits. The cost of an extended car warranty will vary depending on the type of vehicle, mileage, plan, and location, so it is important to shop around and compare quotes from different providers. Additionally, customers should look for a provider that is transparent with its contracts and offers a money-back guarantee. Finally, it is important to consider customer experiences by reading reviews and paying attention to complaints. It is also beneficial to look for companies that offer mobile apps and chat features to provide convenience and customer support.
12. Extended Auto Warranty: Reputation
The reputation of an extended warranty provider is an important factor to consider when purchasing a new car. A car warranty company’s industry standing is determined by examining the Better Business Bureau rating, availability, and longevity in the business. Reviews and customer feedback can also give insight into a company’s customer service responsiveness and helpfulness. A provider with a high reputation will be more likely to offer better coverage options, additional services, and competitive prices. Consumers will also be more likely to trust the company and feel confident that their purchase is protected by a reliable extended car warranty.
13. Extended Auto Warranty: Accessibility
When considering the purchase of an extended warranty for a new car, there are several important factors to take into account including affordability, coverage, industry standing, and customer service. Affordability is determined by a variety of factors such as the make and model of the car, current mileage, and coverage plan. Coverage is determined by the warranty provider and the number of plans offered, term limits, exclusions, and additional benefits. Industry standing takes into account Better Business Bureau (BBB) ratings, availability, and years in business. Customer service looks at customer reviews, BBB complaints, and the responsiveness of the customer service team.
It is important to compare and contrast the various extended auto warranty companies and their offerings in order to make an informed decision. When researching extended warranty companies, it is important to find the one that is best suited to your needs and budget. When comparing different extended auto warranty companies, it is important to take into consideration the coverage levels, the cost of the warranty, and the additional benefits offered. Additionally, it is important to factor in the customer service of the company and the reputation they have in the industry.
14. Extended Auto Warranty: Location
When choosing an extended auto warranty based on location, it is important to consider the size of the coverage and the number of features offered by the provider. Depending on your geographical area and the type of vehicle you’re driving, you may want to opt for different coverage levels and features. For instance, if you live in an area with a lot of extreme weather conditions, you may want to opt for a plan that offers additional coverage for weather-related damages. Additionally, if you drive a newer model car, you may want to opt for a plan that offers more comprehensive coverage for a higher cost. When comparing extended auto warranties, it’s also important to consider the difference in price between providers. By taking into account the features and coverage levels offered, you’ll be able to find an extended auto warranty that fits your budget.
15. Extended Auto Warranty: Reviews and ratings
When researching extended auto warranties, it’s important to review the ratings and reviews of the various providers. Our expert review team has collected data from dozens of companies and formulated rankings based on a weighted score out of 5.0 stars. Companies receive a score in each of the following categories: Industry Standing, Coverage, Cost, Transparency, and Customer Service.
Industry Standing reflects the reputation of the provider, including their Better Business Bureau (BBB) rating and years in business. Coverage accounts for the number of plans offered, term limits, exclusions, and additional benefits like roadside assistance. Cost is based on a secret shopper analysis using different vehicles, mileages, warranty plans, and locations. Transparency includes contract availability and money-back guarantees. Customer Service is evaluated by customer reviews, complaints, and the responsiveness of the customer service team.
Our team prides itself on providing accurate and unbiased information to consumers. By taking all of these factors into consideration, we can help you find the best extended auto warranty provider that meets your needs.
16. Extended Auto Warranty: Support
An extended auto warranty typically includes a variety of support services for new cars. These support services include repair coverage for major mechanical components like the transmission and engine, towing services, rental car coverage, and travel insurance. Roadside assistance and the use of a rental or loaner vehicle may also be available during the period when the covered vehicle is out of commission. Depending on the plan provider and state, corrosion and rust coverage may be included as well.
17. Extended Auto Warranty: Warranty companies
There are several companies available for extended auto warranties, including Endurance, Concord Auto Protect, Carchex, Protect My Car, Platinum Auto Warranty, Complete Car Warranty, and Autopom!. These companies offer a variety of coverage options and additional services, and rank highly based on factors such as their Better Business Bureau rating, AM Best Rating, and cost relative to competitors. Purchasing an extended car warranty from the manufacturer may be more expensive than a third-party alternative, but will guarantee repairs are made by factory-trained technicians using genuine parts, and will be tailored to the unique needs of your vehicle.
18. Extended Auto Warranty: Data collection
When buying an extended warranty for a new car, it is important to consider the cost, customer service, coverage, and available plans. Additionally, it is important to be aware of the most popular extended warranty providers and the customer ratings for each provider, as well as the type of coverage offered with each plan. By understanding the choices available in terms of the coverage, cost, customer service, and plans offered by extended warranty providers, consumers can make informed decisions about the best extended warranty for their needs.
19. Extended Auto Warranty: Manufacturers
What manufacturers offer extended auto warranties? Honda, Toyota, Endurance, Carchex, and CarShield are all companies that offer extended auto warranties. These warranties cover certain mechanical and electrical components for an agreed upon time period and mileage. They can be purchased from the manufacturer or from a third-party provider, and each comes with its own pros and cons. Manufacturer warranties tend to be more expensive but provide repairs from factory-trained technicians using genuine parts, whereas third-party warranties may be cheaper but may not be tailored to your vehicle make or model.
20. Extended Auto Warranty: Warranty information
When evaluating an extended auto warranty for a new car, it’s important to consider the coverage levels offered, the repair costs, deductible amounts and repayment terms. Additionally, you should look into the benefits associated with the warranty, such as towing services, rental car coverage, and travel insurance. You should also inquire about the company’s customer service policies and reputation, as well as the availability of promotions and discounts. Lastly, it’s important to get detailed quotes from multiple companies in order to compare and find the best deal.
How Much Does a New Car Warranty Cost?
The cost of a new car warranty can vary greatly depending on the type of plan you choose and the length of the contract. Generally, you can expect to pay between $800 and $1,000 for a plan that covers the majority of major components with a $100 deductible. Prices can range from $1,300 to $4,600, with the average cost being around $2,600. It’s important to compare different companies and plans so you can get the most coverage for your money. For example, Best Coverage offers extended car warranties with plans starting at $2,000, while Best Monthly Payments offers plans as low as $99 per month.