An extended warranty, also known as a vehicle service contract, is an optional plan that you can purchase to help you pay the cost of certain repairs your vehicle may need while you have it. It usually starts when the manufacturer's warranty expires, but sometimes the two overlap. To qualify for a Toco warranty plan, cars must be less than 20 years old and less than 175,000 miles. Eligibility may also vary by plan.
If you have a used vehicle that is known to need certain repairs within certain miles, an extended warranty may be a safe bet. While buying an extended car warranty is common when you buy a new car, you can usually get a service contract at any time before your warranty expires. However, service contracts generally only cover problems with electrical or mechanical parts, specifically those not covered by manufacturer's warranties. If you want more repair coverage, also consider Mechanical Breakdown Insurance (MBI), a type of insurance you get from your car insurance company to cover and perhaps pay for repairs to parts not covered by extended auto warranties, according to the insurer.
In addition, the EnduranceAdvantage plan is unique in the industry because it offers extended warranty coverage and vehicle maintenance. Extended warranty providers often offer multiple levels of coverage including benefits such as towing services, rental vehicle coverage, and travel insurance. Drivers can purchase aftermarket auto warranty coverage from vehicle manufacturers or from the best car extended warranty companies on the market. An extended warranty for a used car can be very useful because breakdowns and repairs are more common as the car ages.
When you buy an extended warranty for your CARCHEX vehicle, you'll also get additional benefits, such as roadside assistance, towing, gas delivery, rental vehicle reimbursement, travel protection benefits and more. The services covered by the warranty, along with the length of the extended warranty in time or miles, vary widely. Many insurance companies also offer an alternative to extended warranties called mechanical breakdown insurance (MBI). However, many manufacturer's warranties don't cover the costs associated with a vehicle breakdown or they may expire too soon.
The manufacturer's extended warranty is a vehicle service contract that is purchased from an automaker, while the extended warranty from a third party is purchased from an independent warranty company. To determine if an extended warranty is worth it on a new car, ask yourself if you are prepared to cover small repairs and the largest, most expensive occasional repairs you may encounter. Extended warranty coverage outperforms car insurance by dealing with damage due to normal use rather than just repairs caused by collisions, vandalism, theft or acts of nature.