As a general rule, extended warranties do not cover scheduled maintenance items such as oil changes, timing belt replacements or adjustments. Most extended warranties do not cover items that wear out, such as brake pads and windshield wipers. 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. Extended coverage companies don't cover pre-existing conditions because companies would go bankrupt if they were covered. It's similar to your health insurance provider not accepting pre-existing medical conditions.
You cannot call Blue Cross Blue Shield to purchase a policy while you are in the ambulance on your way to the hospital. The warranties do not cover oil changes, brake work, tires or other “wear items”, that is, things that are subject to wear and tear. Expanded car warranties are worthwhile if a driver does not have enough savings to pay for vehicle system repairs or if he is concerned about the reliability of his car. Whether you buy the extended warranty from the manufacturer or from a third-party vendor, you may be able to choose from several coverage plans.
For more information, see WalletHub's guides on mechanical breakdown insurance and extended car warranties. A good time to consider the value of an extended warranty is when your vehicle's manufacturer's warranty has expired or will expire soon. Owners of those cars are much more likely to find that an extended warranty saves them money one day. Please note that most warranties do not extend to items that are prone to wear, such as windshield wipers and brake pads.
It's probably a smart decision to wait until your manufacturer's warranty is about to expire to assess your situation and determine if you want to pay for an extended warranty. Manufacturers often issue separate emissions warranties that provide California residents with longer protections. If you're thinking of buying a car that's working in years and is no longer covered by the original manufacturer's warranty, an extended warranty may ease some fears about the potential cost of major repairs. An extended car warranty is a service contract that drivers can purchase to pay for repairs to a vehicle's main systems, including the transmission and engine.
Check the language of the extended warranty contract you choose, as this may mean paying for repairs in advance and then waiting for coverage to reimburse you. Extended warranties come in a combination of deductibles and mileage extensions, bundles with other types of coverage. This website is intended solely for the purpose of providing general information regarding the purchase of extended warranties. When a driver is looking for an extended car warranty, one of the first things they should do is make sure their vehicle is in perfect working order.