Extended warranties are a great way to protect your car from costly repairs and provide peace of mind. But how much should an extended auto warranty cost? To answer this question, it's important to understand the different types of warranties available and the factors that affect the cost. The two main types of extended warranties are powertrain and comprehensive. Powertrain warranties cover the essential components necessary for a vehicle to function, such as the engine, transmission, and drivetrain.
Comprehensive inclusive plans and Powertrain Plus plans are mid-range levels of coverage that offer more protection than powertrain warranties. The cost of an extended warranty depends on several factors, including the age of the vehicle, the mileage, and the level and period of coverage. Truck warranties can sometimes be more expensive due to larger parts that can wear out more quickly. To be profitable, extended warranty companies must charge an amount large enough to cover all car repairs with money left over.
Many car owners find it worth extending the warranty for the added peace of mind and potential to save hundreds or even thousands of dollars on expensive repairs. Before making a decision about whether you need extended protection for your car or not, consider factors such as your driving habits, the age and condition of your car, and your budget. Extended warranties don't cover routine maintenance or breakdowns due to normal wear and tear, so you'll still need to save money for new tires. By including the extended warranty in your car financing, you'll pay interest on the warranty, which only adds to the total cost.
Some used vehicles are covered by certified used vehicle warranties (CPO), which offer levels of protection similar to those of the factory warranty. When you buy a new car, it typically comes with a manufacturer's warranty that covers car repairs for a predetermined period of time and miles. In general, if you have a plan with low deductibles or no deductibles, you'll pay more for the extended warranty than if you choose a plan with a higher deductible. Look for a reputable extended warranty provider with a strong customer service record. Extended auto warranties can be very beneficial if you like driving cars that aren't exactly top-of-the-line in terms of owner satisfaction. To determine if you would benefit from additional coverage, consider factors such as your driving habits, the age and condition of your car, and your budget.