Should You Buy an Extended Auto Warranty? The Ultimate Guide to Extended Vehicle Protection

What is an Extended Auto Warranty?

An extended auto warranty is a service that extends the term of the original warranty provided by the manufacturer of a vehicle. It can cover malfunctions of major systems like the powertrain, as well as repairs for typical car wear and tear. An extended warranty can either be purchased from a third-party company or directly from the vehicle’s manufacturer, and often offers multiple levels of coverage with additional benefits such as towing services, rental car coverage, and travel insurance. It’s important to understand what is covered and what the specific contract definitions are, as well as how to prevent your repair claim from being denied. If you are considering buying an extended warranty, you should compare wear and tear coverage versus mechanical breakdown coverage and reviews of companies that are available.

Image Product Features Price
Emergency Item

Premium Car Glass Breaker Safety Hammer (2 Pack)

Premium Car Glass Breaker Safety Hammer (2 Pack)

  • Safety Item: Car safety hammer and seatbelt cutter is a must-have tool for emergencies
  • Double Pack: Comes in a set of 2 with 2 mounting brackets
  • High Quality: High-grade carbon steel and engineering plastics make it durable and reliable
  • Double-Tipped: Double-tipped solid cone head can break car windows easily
  • No Skid: Anti-skid handle is long and light for easy control
  • Mounting Available: Mounting bracket included for easy storage in the car
9.6
Check Price
Emergency Item

Always Prepared Standard Roadside Emergency Car Kit (62 Pieces)

Always Prepared Standard Roadside Emergency Car Kit (62 Pieces)

  • Multipack: 62-piece premium roadside assistance emergency kit for immediate help on the road
  • Compact: Compact and convenient, comes in a sturdy nylon bag that fits easily in your car
  • Multiple Tools: Includes tools for excellent roadside visibility, such as a reflective safety vest, warning triangles, light sticks, and a self-powered flashlight
  • First Aid Included: First-aid essentials also included, such as bandages, tape, a rain poncho, and emergency blanket.
  • Great Gift: Perfect for first-time car owners, young new drivers, those buying a used or new car, and anyone wanting extra safety and security in their vehicles
9.4
Check Price
Emergency Item

Roadside Emergency Assistance Kit (110 Pieces)

Roadside Emergency Assistance Kit (110 Pieces)

  • 110 Items: The Premium Auto Emergency Assistance Kit contains over 110 resources commonly found in both a car kit and a roadside emergency kit.
  • Included: The kit includes a 64-piece First Aid Kit, Heavy Duty Jumper Cables, Heavy Duty Tow Strap, Emergency Blanket, 11-In-1 Multi-Tool, Flash Light, Bungee cords, Magnesium Fire Starter, Roadside Warning Sign, Roadside Emergency Tools, and more.
  • Easy Storage: Comes in a durable poly-canvas duffel bag with room to add your own items if you’d like.
  • Be Prepared for an Emergency: Instant peace of mind knowing that you and your loved ones are ready for almost any roadside emergency.
  • Good Gift: Makes a great gift for teen drivers, college students, young families, parents, grandparents, and employees.
9.4
Check Price
Emergency Item

Jump Starter, SUNPOW 1500A

Jump Starter, SUNPOW 1500A

  • Strong: The portable car jump starter has a powerful 1500A peak current, capable of safely starting a 12V car (up to 8.0L gasoline or 6.0L diesel engine) within seconds.
    It can jump-start cars up to 20 times on a single charge, which takes only 3 hours to recharge.
  • Portable: The jump starter is also a compact and portable device with a 16000mAh capacity, equipped with dual USB ports that can charge phones and tablets. One of the USB ports supports fast charging (5V/9V/12V).
  • Safe: The jump starter has 8 kinds of safety protection functions, including overload protection, voltage stabilization protection, constant current protection, short circuit protection, prevent discharge, anti-reversal design, and prevent overheating.
  • Diagnoses: The device features a smart jumper clamp that enhances battery status diagnosis and notifies users of incorrect usage with beeps and flashing lights.
  • Bright: The ultra-bright LED light is a multifunctional life-saver with three lighting modes, including flashlight, strobe light, and SOS light, making it useful for emergencies and outdoor adventures.
9.2
Check Price
Emergency Item

Stalwart 75-BP1010 Electric Blanket-Heated 12V Polar Fleece

Stalwart 75-BP1010 Electric Blanket-Heated 12V Polar Fleece

  • Soft & Comfortable: The electric blanket is made of polar fleece material.
  • Cigarette-Lighter Powered: It is car adaptable and can be plugged into any car, truck, SUV, or RV cigarette lighter.
  • Long Cord: Equipped with a 96-inch-long cord, it can be used by passengers in the backseat.
  • Easy Storage: It can be easily folded and stored in a trunk or backseat.
  • Large Size: The blanket measures 59” x 43” and comes with a storage case with handles.
8.6
Check Price

 

Why Should You Consider Purchasing an Extended Auto Warranty?

1. Extended warranties provide coverage for major parts and systems that are not covered by the manufacturer’s warranty

Extended warranties provide coverage for major vehicle systems, such as the powertrain, heating and air conditioning, and other safety technology. Depending on the type of warranty and the plan, they may also cover repairs for wear and tear. Some extended warranties include additional services such as towing, roadside assistance, and trip interruption protection. Additionally, many extended car warranties require the vehicle owner to pay a deductible for the repairs that are covered. The coverage provided by an extended warranty typically ends when the car has reached a certain number of miles or a certain number of years, whichever comes first.

2. Extended warranties can cover services and repairs that are not covered by the manufacturer’s warranty

An extended warranty covers the repair or replacement of covered vehicle components after your factory warranty coverage has ended. It typically covers malfunctions of major systems such as the powertrain but may include extras such as towing, roadside assistance or trip interruption protection. The coverage may also include repairs for typical car wear and tear. It may not cover routine maintenance items such as tires, brakes, wiper blades, air filters or oil changes, and may require you to pay a deductible toward repairs. It’s important to read the fine print carefully to know exactly what an extended warranty covers and what it doesn’t.

3. Extended warranties can provide additional coverage for tires, windshield wipers, and air conditioning systems

Extended warranties typically provide Mechanical Breakdown and Wear and Tear coverage, which includes repair or replacement of covered vehicle components after your factory warranty coverage has expired. Exclusionary coverage is often offered, which covers all parts of the car not specifically mentioned in the contract agreement. Additionally, some plans include extras, such as towing, roadside assistance or trip interruption protection, though these benefits may not kick in until after the manufacturer’s warranty has expired. It’s important to read the fine print of any extended warranty plan, as routine maintenance items like oil changes, tires, brakes, and wiper blades are not typically covered.

4. Extended warranties can cover rental car costs if the vehicle is being repaired

An extended warranty can help cover the costs of renting a car if your vehicle is being repaired. In the event of a covered mechanical breakdown, the warranty provider may offer towing to the nearest repair facility within the provider’s network, as well as rental car reimbursement up to a certain amount. This allows car-buyers to avoid full cost of repairs and instead just pay the deductible for covered repairs, with the warranty company bearing the majority of the cost.

5. Extended warranties can provide coverage for mechanical defects arising from normal wear and tear

Types of defects covered by extended auto warranties can be classified into two main categories: mechanical breakdown and wear and tear.

Mechanical breakdown refers to the failure of a part or system due to mechanical problems caused by defective parts, poor workmanship, or improper installation. Examples of mechanical breakdowns include engine failure, transmission failure, and electrical system failure.

Wear and tear refers to the gradual deterioration of a part or system due to normal use. Examples of wear and tear include worn brake pads, worn tires, and oil leaks.

In general, extended warranties cover both mechanical breakdown and wear and tear, though the exact coverage varies depending on the plan. It’s important to read the fine print of the policy to understand what is and is not covered. Additionally, some plans may have additional benefits such as towing, roadside assistance, and car rental reimbursement.

6. Extended warranties can cover unexpected electrical or mechanical problems that arise from normal use.

An extended warranty can cover both mechanical breakdowns and wear and tear failures. Mechanical breakdown coverage covers failures that can be traced to a mechanical problem, such as a faulty part or component. Wear and tear coverage covers failures that are the result of normal wear and tear, such as worn out brake pads or tires. It is important to research the particular contract you are considering to make sure it covers both mechanical breakdowns and wear and tear. Most companies offer both types of coverage, but it is important to read the fine print to ensure that you are getting the coverage you need. Additionally, many extended warranties do not cover standard consumable items such as tires, batteries, and windshield wipers. Make sure to read the contract carefully to understand what is and is not covered.

7. Extended warranties can provide coverage for parts that may become defective over time

Extended warranties can often provide coverage for the critical mechanical parts of your vehicle, such as the engine, transmission, axles, and gaskets. Some extended warranties may also provide coverage for electronic components and parts, such as the audio system, air conditioning, and power windows. Depending on the policy, you may be able to find coverage for specific parts such as the suspension, brakes, and steering. Additionally, some extended warranties may even provide coverage for wear and tear, as well as roadside assistance.

8. Extended warranties can cover unexpected costs associated with towing and labor

An extended auto warranty can provide much-needed coverage for repair costs after a car’s manufacturer warranty has expired. Different policies cover different repairs, but some typically include roadside assistance, towing services, rental car reimbursement, trip interruption coverage, and maintenance benefits such as oil changes. However, an extended warranty generally does not cover routine maintenance items like tires, brakes, wiper blades, air filters, or oil changes. It is important to read the fine print of the warranty to know exactly what is and is not covered.

9. Extended warranties can provide coverage for labor costs that are not covered by the manufacturer’s warranty

An extended warranty typically covers labor costs associated with the repair or replacement of covered vehicle components after your factory warranty coverage has expired. Labor costs can include the cost of replacing and/or repairing the mechanical, electrical, and/or electronic parts of the vehicle related to the defect or failure. The labor costs may also include the cost of removing parts and/or reinstalling them after the repair has been completed. However, labor costs typically do not include the cost of routine maintenance items such as tires, brakes, wiper blades, air filters or oil changes.

10. Extended warranties can provide additional protection against manufacturer’s warranty shortfalls

An extended warranty can help protect against manufacturer’s warranty shortfalls by providing additional coverage when parts start to fail past the manufacturer’s warranty period. This can save car-buyers money on costly repairs since they would only be responsible for covering the deductible and the extended warranty provider would pay for the rest, provided it is included in the service contract. Additionally, having an extended warranty can help provide peace of mind in case of emergency repairs. It is similar to car insurance in that it is a protective measure that is beneficial when needed, even though it may not be an economical choice otherwise.

What are the Best Extended Warranties for Cars?

1. Coverage

When it comes to extended warranties for cars, there are two main types of coverage available: exclusionary and inclusionary policies. Exclusionary policies list the items that are NOT covered under the policy while inclusionary policies, also known as listed-item coverage, cover any item not listed in the exclusions. Additionally, there are several levels of protection available depending on the price paid. Common types of coverage include mechanical breakdown coverage, paint and fabric defense, tire and wheel protection, complete protection, excessive wear and tear protection, extended vehicle care, and gap protection. It is important to note that most plans require an upfront deposit with monthly payments following, and typically have a wait time of 30 days and 1,000 miles before they will take effect. Deductibles may also be required, with the amount varying from $50 to a few hundred dollars. Be sure to select an administrator with a highly rated insurer for their “Claims Reserve Account” to ensure sufficient funds are available to pay a covered claim.

2. Price

When it comes to finding the right extended warranty for your car, it’s important to compare the costs and benefits of each option. The prices of extended warranties can vary drastically, so it’s important to evaluate your options and choose the one that best fits your budget and needs. Some extended warranties may require a down payment, while others offer no down payment. It’s also important to consider the coverage and additional services provided by each option, as these can make a big difference in terms of value. With so many choices available, it can be difficult to determine which is the best extended warranty for your car. That’s why it’s important to compare the prices and inclusions to make sure you’re getting the best value for your money.

3. Coverage

When it comes to extended warranties for cars, there are two types of coverage available: “named-component” and “exclusionary.” Named-component coverage covers only specifically named parts and usually does not come with a deductible. Exclusionary coverage covers nearly all components, with the excluded parts spelled out, and usually has a deductible of between $50 to a few hundred dollars.

In terms of choice of repair shop, extended coverage from an automaker typically only covers service done at its branded service centers, while warranties from third-party providers usually allow you to choose any certified repair facility. In terms of cost, coverage plans from third-party providers may be cheaper than extended coverage from the manufacturer, and they often include additional perks such as towing, roadside assistance, rental car reimbursement, and trip interruption coverage.

Limitations to keep in mind are the length of the contract and the availability of funds to pay a covered claim. Once the contract expires, a new one must be purchased to cover repairs moving forward, and it’s important to choose an administrator with a highly rated insurer for their Claims Reserve Account. Additionally, only buy coverage from companies with solid financials so they can actually pay your claims.

4. History of repairs

The history of repairs for a car plays an important role in determining whether or not the purchase of an extended warranty is a wise decision. Cars that have a reputation for outstanding quality and reliability often do not require an extended warranty, as they are unlikely to need costly repairs. On the other hand, cars that have a history of needing expensive repairs, or are loaded with advanced technology, may benefit from an extended warranty. The cost of repairs on these cars can be shocking, and an extended warranty can provide the peace of mind in knowing that repairs will be covered. Additionally, corrosion warranties can cover the damage if the car begins to rust. Before making the decision to purchase an extended warranty, it is important to research the details of the contract, including the repair approval process and appeals process.

5. Do you really need this warranty?

Do you really need this warranty? Before you purchase an extended warranty plan, it’s important to consider both the pros and cons. Have other cars you’ve owned had the kinds of problems that would have been covered by a warranty? If you can’t remember the last time you had a flat tire, you might not need the coverage. Consider how much you have spent on out-of-warranty repairs in the past and compare the total to the cost of the warranty. Additionally ask yourself whether you get tired of a car by its third year, and if you can save the money you would have spent on an extended warranty as part of your family’s emergency fund. The data seems to indicate that overall vehicle dependability is on the upswing, so it may not be necessary to purchase an extended car warranty.

6. Expenses covered

The extended warranties for cars can cover a wide range of expenses, such as trip interruption reimbursement for meals and lodging far from home, rental car reimbursement, 24/7 roadside assistance, towing needs, transferable plans, trip protection, and extended warranty with a highly rated insurer. They can also cover paint and fabric defense, tire and wheel protection, complete protection, excessive wear and tear protection, and GAP protection in case of a total loss. Depending on the plan chosen, it may also cover all components in the vehicle, powertrain components, as well as air conditioning, power windows, and other systems.

7. Length of coverage

When it comes to extended warranties for cars, there are a variety of options available to suit different budgets, coverage levels, and needs. The best extended warranty policies typically include Trip Interruption reimbursement which can protect you from costly expenses related to covered breakdowns far from home. The most comprehensive coverage, also known as bumper-to-bumper coverage, is the most popular option among consumers, as it covers a wide range of components.

When it comes to cost, the more comprehensive the coverage, the higher the price. Additionally, providers may factor in the condition and mileage of the vehicle, the length of the term, and the deductible level. While insurance coverage can be more cost-effective than an extended warranty in some cases, the latter may be more economical if you have a poor claims history or high premium costs.

At present, Endurance is our top-rated provider, with a rating of 4.6 out of 5.0 stars. It offers a wide range of coverage options with up to 8 years or 200,000+ miles of protection, and works directly with customers rather than using independent contact administrators.

It is important to weigh up your options carefully when deciding on the best extended warranty for your car. Read up on comparison reviews of different providers to ensure you get the right coverage for your needs.

8. What’s the deductible/how many visits are covered?

The deductible and number of visits covered vary depending on the type of coverage plan you choose. Named-component plans cover only specific parts, while exclusionary plans cover almost all components, with certain parts excluded and spelled out in the policy. Manufacturer-backed plans usually don’t have any deductibles, but for third-party providers, deductibles can range from $50 to a few hundred dollars and can be “per visit” or “per repair.” It’s important to note that some deductibles are “per repair,” meaning you may end up paying a deductible for each part repaired, even if it’s on the same day.

Comparing plans is a great way to find the best coverage for your needs. For example, some of the best monthly payments are as low as $99, whereas plans with the best coverage may offer $300 off with a code. You can also look for policies that offer Trip Interruption reimbursement, which covers meal and lodging expenses incurred due to a covered breakdown far from home. Be sure to check the policy limits before you check in to the Ritz.

9. Where do I file a claim?

If you need to file a claim for an extended warranty for a car, you can log in to your provider’s website or call 1-866-749-7436. It’s important to research how the company will reimburse you for repairs. You should also check the policy limits and make sure the company has a highly rated insurer for their “Claims Reserve Account.” Additionally, some providers offer money-back guarantees for a limited period after the start of your plan. Finally, make sure to only buy coverage from companies with solid financials so they can actually pay your claims.

10. How do I get a quote?

Getting a quote for an extended warranty for your car can be a hassle, but there are several steps you can take to make the process easier. Here’s how to get a quote for an extended warranty for your car:

  1. Gather your vehicle information: Before requesting a quote, make sure you have your vehicle year, make, model, mileage, and vehicle identification number (VIN). Having this information on hand when you call will make the quote process faster.
  2. Get quotes from multiple companies: Compare quotes from at least four companies to see what levels of coverage you qualify for and to compare service and costs. Start comparing quotes from top-recommended providers by filling out the information on their website.
  3. Contact local dealerships: Some extended warranty companies do not sell directly to consumers but work through dealerships. Call local dealerships and ask about warranty pricing for your vehicle.
  4. Negotiate: Contract prices may not be set in stone, and many providers regularly run promotions. Ask about any available discounts, and don’t be afraid to try and drive your price down or ask for additional coverage to sweeten the deal.
  5. Sleep on it: An extended car warranty can be a significant investment. Be wary of any sales agents who pressure you into making an immediate decision.

By following these steps and taking the time to compare extended warranty cost information from multiple companies, you can get the best value on an extended car warranty.

How to Choose the Right Extended Warranty for Your Needs?

Step 1: evaluate your needs

When choosing an extended warranty, it is important to evaluate your needs and determine what type of coverage is best for you. Here is a step-by-step guide to finding the right car service contract for you:

Step 1: Find a company whose sole purpose is to provide car service contracts. Look for companies that are experienced, offer competitive prices, and have sample contracts available on their website.

Step 2: Request more information and get a quote. Submit a request form to the company and get personalized quotes for the different plans available for your vehicle.

Step 3: Research what each plan covers. Compare the different options and how they fit into your budget. Consider average repair costs and decide if you’re willing to pay out of pocket for things not covered.

Step 4: Ensure your vehicle is eligible. Most plans cover vehicles with less than 500,000 miles. Make sure your vehicle qualifies for the plan you select.

Step 5: Research any additional benefits and terms. Find out if the plan comes with roadside assistance, cancellation policies, payment plans, and the claims process.

Step 6: Determine your budget. Consider the highest level of coverage that your budget will allow.

Finally, remember to compare personalized quotes from multiple companies before deciding on an extended warranty.

Step 2: Research different types of extended warranties

When it comes to purchasing an extended car warranty, it is important to consider the different types of plans available, as well as the cost and coverage. There are two primary types of extended warranties: those offered by the vehicle’s original manufacturer and those offered by third-party extended warranty companies. Each of these plans have their own advantages and disadvantages, so researching them carefully is essential.

Manufacturer warranties are usually the most expensive, but they may provide the most comprehensive coverage. Additionally, they tend to be the most reliable and recognizable type of warranty available. Third-party warranties are usually cheaper, but the coverage may be more limited. It is important to read the fine print carefully and make sure the warranty covers the parts you need.

When researching extended warranties, it is important to have your vehicle’s make, model, year, mileage, and VIN number ready to get the most accurate quote. You should also call local dealerships to ask about warranty pricing for your vehicle. Negotiating with providers and asking about discounts and promotions can help you get the best deal. You should also research the company to make sure they are reputable and have good customer service, in case you need to file a claim.

Step 3: Determine what level of protection is right for you

When it comes to choosing the right level of protection for you when it comes to an extended car warranty, there are a few steps you should take. First, you should consider your finances, your financial comfort level, and the vehicle you’re buying. Then you’ll want to compare the prices of the different coverage plans and find out which company stands behind them.

Next, you’ll want to find a company whose sole purpose is to provide car service contracts, such as Fenix Protect. Request more information and get a quote from them to get a better sense of what your plan would cover.

Then, research what each plan covers, making sure to consider the different options and how they fit into your budget. Also, ensure that your vehicle is eligible for the plan you’re considering, as each plan has different specifications.

Finally, research any additional benefits and terms that come with the plan, such as roadside assistance and cancellation policies, as well as the payment and claims processes. Lastly, determine your budget and opt for the highest level of coverage that your budget will allow.

Step 4: Consider cost, coverage and flexibility benefits

When evaluating the cost, coverage and flexibility of an extended warranty, there are several factors to consider. First and foremost, it’s important to compare and contrast the different warranty companies in order to get the best value. Consider the price of coverage and the company that stands behind it, and make sure to get quotes from at least four companies. Additionally, think about your finances, financial comfort level and the vehicle you’re buying.

It’s also important to research what each plan covers. Think about the average repair costs to the parts that differ in each car service contract, and determine if you’re willing to pay out of pocket for things that aren’t covered. Additionally, research any additional benefits and terms such as roadside assistance and the cancellation policy.

Finally, consider the budget when determining the best plan. It’s usually recommended to purchase the highest level of coverage that the budget will allow. Insurance such as mechanical breakdown coverage may be more cost-effective than an extended warranty, but in certain cases, an extended warranty may be more economical.

Step 5: Evaluate previous experience with vehicle repairs

Evaluating previous experience with vehicle repairs can help you choose the right extended warranty for your needs by enabling you to assess the type of repairs you are likely to incur in the future. For example, if you have owned several cars with a reputation for outstanding long-term quality, then you may opt to not buy an extended warranty. On the other hand, if you own a vehicle that has had costly repairs in the past, then an extended warranty may be beneficial as a way to offset the cost of future repairs. Additionally, if the vehicle you are buying has many tech features that may be expensive to repair, you may want to consider the added protection of a warranty. Finally, it is important to take into account how much you have spent on out-of-warranty repairs in the past and compare the cost of the extended warranty to the amount you have already spent. By doing so, you can gain an understanding of the value of an extended warranty for your particular needs.

Step 6: Read reviews on the warranty company’s customer service and coverage

When reading reviews of a warranty company’s customer service and coverage, it’s important to consider the affordability, the variety of coverage options, and the company’s response to customer complaints. Affordability is an important factor, since it can be difficult to compare quotes between providers. Furthermore, the more coverage options available, the better. It’s essential to find a company that offers an array of coverage options so that customers can find the plan that fits their individual needs. Finally, it’s important to consider how a provider responds to customer complaints. Reviews from sites like the Better Business Bureau and Trustpilot can give insight into a company’s customer service.

Step 7: Check if the warranty is legally valid in your location

Step 1: Check your car’s mileage and date of purchase to determine whether it is still under the terms of the warranty. Your car’s owner’s manual will have details on the warranty coverage from when the car was initially sold. To find the mileage, check the odometer. If the car’s mileage exceeds the warranty limit, the car is no longer covered. If it does not go over the limit, you’ll still need to check the date of purchase. If you don’t know the original purchase date, write down the VIN (vehicle identification number) and call any dealership selling that car brand.

Step 2: If you are not your car’s first owner, you’ll also need to ask whether the warranty was transferred to you when you bought the car. The answer is almost always yes, but for some manufacturers and some model years, warranty terms can change when a car gets sold as a used vehicle.

Step 3: Before you purchase an extended warranty, make sure to review the contract and determine what is covered and what is not. Read the fine print to evaluate the repair approval process and ask if there is an appeals process if the warranty provider decides not to cover a repair that you or your mechanic believes should be covered.

Step 4: When choosing an extended warranty provider, make sure to look for a company that takes time to respond to customer complaints and offers solutions to problems.

Step 8: Look for approval from trusted sources such as CARCHEX, Toco Warranty Corporation and others

Step 1: Research the extended warranty provider. Check customer reviews and ratings on reliable third-party review sites.

Step 2: Make sure the provider is legitimate and well-established. Check to see if they have a strong presence in the market, such as CARCHEX, Toco Warranty Corporation and others.

Step 3: Confirm the provider has been approved by a trusted source. Look for endorsements from organizations such as the Better Business Bureau, Consumer Reports, and other reputable entities.

Step 4: Check to see if the provider is insured and licensed. Make sure the provider is licensed to do business in your state, and that they have the necessary financial backing to cover the cost of repairs.

Step 5: Read the terms and conditions of the extended warranty. Review the coverage, exclusions, and limitations of the policy to make sure it meets your needs. You should also check to see if there are any hidden fees or costs associated with the policy.