You take good care of your vehicle, but no one can prepare for the unexpected. If your car is on the road, it’s going to need maintenance and repairs. Some of these, like regular oil changes, are routine and affordable. What if something happens to the transmission? Are you prepared to pay for those big repairs out of pocket? If your factory warranty has expired, consider adding extended warranty coverage. How do you know if an extended warranty is right for you? Here are some tips for finding the best extended car warranty.
Check Your Factory Warranty
The chances are your car came with a factory or dealership warranty of some kind. These cover everything that could go wrong outside normal wear and tear. Double-check your paperwork to determine if you have already extended past your factory warranty.
The factory warranty typically expires within a certain period after the vehicle purchase or after a certain number of miles. It typically runs for three years or 36,000 miles (whichever comes first) from the date of purchase. Once you have determined your car is no longer under a factory warranty, you’re ready to pursue your extended warranty options.
Determine What You Need
Extended warranties are not for everyone. The worst-case scenario is you pay monthly premiums for your extended warranty and never use it. Of course, if that’s the case, it means nothing bad has happened to your vehicle, and you’ve paid for peace of mind. That’s not a bad deal. Still, you should do a cost-benefit analysis of what you might need in an extended warranty, how much it is likely to cost, and what it covers.
You have options when it comes to extended warranty coverage. You may choose to cover
- major repairs, like the engine or transmission
- minor but expensive problems, like your stereo or factory accessories
- bumper-to-bumper coverage, which is similar to your factory warranty
Factors that can affect whether an extended warranty is right for your situation are:
- Make and model of your vehicle
- Age and anticipated ownership
- Use
- Repair history
If your car is rare or special, you may wish to cover expensive or unique parts and services with an extended warranty. Depending on your vehicle and coverage option, you may find an extended warranty will save you a bundle in the long run. Especially if you drive a luxury car, sports car, or supercar, an extended warranty can save you on expensive repairs.
Your family minivan, on the other hand, could benefit from an extended warranty if it has a lot of miles or you anticipate major repairs in the future. Either way, an extended warranty is peace of mind that almost anything that happens to your car, truck, or SUV is covered under your warranty.
Choose the Right Warranty
Extended warranties come in all shapes and sizes. Depending on your type of vehicle and the type of coverage you want, you can insure everything, from the engine to the tires. Here are some of the most common types of extended warranties:
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- A bumper-to-bumper warranty provides the most extensive coverage. Often as good as or better than your factory warranty.
- A powertrain warranty covers the engine, transmission, and drive systems. It usually covers fewer but more vital repairs.
- A wear-and-tear warranty is specifically for normal use coverage. This is sometimes included in a bumper-to-bumper type warranty but not usually included in a factory warranty.
- Specialty, emissions, maintenance, accessory, and rust or corrosion warranties are other examples of after-market warranties.
Read the Terms and Reviews
Be sure you’re aware of what your extended warranty does and doesn’t cover. Remember your extended warranty is fundamentally different from your factory warranty and will often not cover the same things. You have to read the fine print on your warranty, so you know exactly what you’re paying for and what you will be responsible for covering in the event of an incident.
You can compare the pros and cons of each extended warranty company by looking at their rates and deductibles, coverage options, and length of time each warranty protects your car. Some companies offer extras such as roadside assistance that may be worth checking into.
Look for customers who are happy with their service and make note of what pleases them. Is the customer service available and reliable? Claims handled quickly and directly with the repair professionals? Also, check out the negative reviews to see if there are any potential issues to investigate before you commit. Be sure to look at how customers report dealing with the company directly.
The Bottom Line
Not everyone needs an extended warranty on their commuter or family car. There is such a thing as too much protection. If you have a luxury or classic car, though, an extended warranty becomes essential. Check all your options before deciding. Also, be sure to understand everything the warranty covers and then pick the best kind of coverage for your needs.
