When it comes to extended warranties, there are certain items that are not covered. Generally, scheduled maintenance items such as oil changes, timing belt replacements, and adjustments are not included. Additionally, items that wear out over time, such as brake pads and windshield wipers, are not covered. The main difference between insurance against mechanical breakdowns and an extended warranty is where you purchase them. The cost of an extended car warranty depends on several factors, such as the condition of the car, the mileage of the car, and the amount of coverage included in the warranty.
Most basic extended warranties do not cover anything that could be considered a routine maintenance item, such as changing oil or rotating tires. It is possible to get a warranty for a used car after you purchase it from a third-party extended warranty company. An extended car warranty is an optional service plan that drivers can purchase to pay for repairs to the vehicle's main systems, including the transmission and engine. Vehicle service plans are offered by auto insurance companies, while extended warranties are generally sold by dealers or third-party companies. According to a Consumer Reports survey, most people who purchase an extended warranty save less on repairs than they pay for the contract. You may receive a phone call offering to sell you an extended car warranty or even asking to be paid to renew an extended warranty for a car you don't remember buying.
An extended warranty can cover engine, transmission, air conditioning and electrical system repairs. Vehicle service contracts (VSC) are often referred to as “car warranties” or “extended car warranties” but they are not warranties. Owners of certain cars are more likely to find that an extended car warranty saves them money one day. Drivers can purchase an extended warranty from an outside company or directly from their vehicle manufacturer. Like extended warranties, mechanical failure insurance covers damage to a vehicle's major systems, including the engine and transmission. If you're considering investing in an extended car warranty, it's best to wait until your manufacturer's warranty is about to expire.
For more information on this topic, check out WalletHub's guides on insurance against mechanical breakdowns and extended car warranties.
