What does the automatic extended warranty cover?

The extended warranty takes effect after the manufacturer's comprehensive warranty has expired. While the manufacturer's warranty is included in the purchase price, the extended warranty is sold separately. Exactly what an extended warranty covers depends on the type of warranty you choose. But, in general, extended warranties cover the critical mechanical parts of your vehicle, including the engine, transmission, axles and gaskets.

If you buy a powertrain warranty, you're likely to pay less for coverage than you would for comprehensive comprehensive coverage. Secondly, you may intend to keep the car for ten years, but the warranty covers three years or 36,000 miles. A comprehensive warranty is usually the most comprehensive extended warranty you can purchase. For more information, see WalletHub's guides on mechanical breakdown insurance and extended car warranties.

If you're buying a new car, consider how long you plan to keep the car and how many miles you'll travel annually. Many insurance companies also offer an alternative to extended warranties called mechanical breakdown insurance (MBI). Once you know what an extended warranty covers, the next question is how long the warranty lasts. Often referred to as service agreements, service contracts, protection plans, or service plans, extended warranties cover the bill for repair costs after the factory warranty expires.

You may believe that this is enough coverage to keep your new vehicle on the road and out of the repair shop for years to come. Eligibility for auto finance prequalification from participating lenders is determined by the information you submitted, along with the personal credit profile of credit reporting agencies that Capital One obtains through your Auto Navigator prequalification application. A higher level of coverage will generally last longer miles and a longer period of time than a lower level. An extended warranty could also be worthwhile if you're concerned about your ability to pay for major mechanical repairs in the future.

But like the financing they offer, dealers tend to increase the cost of extended warranties to make a profit. If your car isn't very reliable and you're not in a financial position to risk paying for repairs or replacing the car yourself, it might be worth paying a higher upfront cost for protection through an extended warranty.

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