Pricing for extended car warranties can vary greatly, as there are many factors that can influence the cost. While a vehicle service contract can offer a lot of benefits, the answer to whether you should buy one is not always straightforward. An extended car warranty may not be the right choice for every car owner. For instance, some warranty plans can be quite expensive.
If you don't plan on keeping your car for much longer, then a warranty may not be the best option. The cost of extended warranties can range from hundreds to thousands of dollars a year, and in some cases, you may end up paying thousands. Unfortunately, some warranty companies use aggressive marketing tactics and offer warranties with poor quality coverage. Depending on the extended warranty, you can get coverage similar to the manufacturer's warranty or purchase a plan that covers only essential parts, such as the transmission.
Extended car protection services, also known as vehicle service contracts (VSC), provide protection when your vehicle breaks down. If your car is not particularly reliable and you wouldn't be able to afford major repairs right now, then it may be worth extending your warranty. For new cars, the service contract won't take effect for several years, usually close to the expiration of the original warranty. The AAA Extended Warranty Program is called the AAA Vehicle Protection Plan and covers engine, transmission, suspension, steering, and brake repairs, among other things.
Extended warranties can reduce financial stress, especially for those who own unreliable brand models. If your car meets the required maintenance program, then your repairs will be covered if you take it to the specified auto shop. Extended powertrain warranties are a lower-cost option that is often an excellent choice for used cars. When buying extended warranties, it's always a good idea to compare custom quotes from several companies.
If you're thinking of extending your car's warranty, you should first determine if you're eligible to buy one. The cost of an extended car warranty varies from policy to policy and will depend on the car you want to cover. CarShield sells service plans for vehicles which are similar to extended warranties and cover the cost of repairs to automotive systems and mechanical parts. Having the peace of mind that an extended warranty provides is a big advantage of buying an extended warranty, but it can also be a double-edged sword.
If you want to compare the cost of industry-leading extended warranty plans, see the table below. Regardless of the exact type, extended guarantees are an investment in peace of mind that limits financial risk for a specified period of time.
