Buying a car is a substantial investment in terms of time and money. However, this experience of owning a car can turn a little worrisome when your factory warranty runs out. The best option in such a case is to buy a new warranty, but, buying a regular warranty again can prove costly. To avoid that, you can opt for an extended car warranty.
An extended car warranty should ideally be opted for when you make the initial vehicle purchase. Although, if you have not done so, you can still extend your warranty later. To make your selection easier, here are the types of extended warranty options as well as extended car warranty benefits:
Types of extended car warranties
- New car warranty
This warranty is best suited for cars that are still within the original warranty period offered by the car manufacturer. The biggest benefit of this type is the extending of the manufacturer’s warranty by one to four years. However, this type of extended warranty is offered by the manufacturers rather than the dealers. - Assured warranty
This type is meant for covering repair costs on used cars. More specifically, it covers repair costs for used cars that are up to 8 years old and have traveled under 75,000 miles. - Used car warranty
This type of extended car warranty has the most limited coverage. Used car warranties usually only provide a cover of $2,000 to $3,000 for each claim. This coverage is conditional to the car being more than 8 years old or having traveled more than 75,000 miles.
Top 3 extended car warranty benefits
- Savings on repairs
Undoubtedly, the most obvious extended car warranty benefit is savings. You would lose a fortune trying to repair your vehicle outside its coverage. Keep in mind that there is a monthly premium that you have to pay for the service the warranty offers. However, this cost is definitely much lower than what you would actually have to spend while trying to cover your own repairs. - Access to good advice
Apart from the substantial savings on the cost, one of the major extended car warranty benefits is the assistance provided by the knowledgeable staff of the organization that you have gotten the extended warranty from. While many car owners are familiar with the workings of their cars, many have no other option than to pay for whatever repairs the mechanics at a repair shop claim are needed. If the repair shop is being untruthful about the costs or the repairs required, you may end up facing unnecessary and useless costs. - Peace of mind
Finally, an extension of warranty gives you a sense of security. Similar to most types of coverage such as life insurance, auto insurance, or home owner’s insurance, you hope that you never have use for it. However, if the need arises, you will feel safer by investing in a solution beforehand.
