The extended car warranty is a plan that covers the cost of repairing or replacing parts of your vehicle that break down over time. It is a useful option if you are not prepared to pay for expensive repairs. The primary purpose of an extended warranty is to cover major mechanical repairs, such as the engine, transmission, electrical system, and more. An extended warranty on a car is sometimes referred to as a vehicle service contract.
It is very similar to the manufacturer's warranty, since it usually covers faults in major systems, such as the powertrain. A comprehensive warranty can cover more systems, including heating and air conditioning, steering and safety technology, and more. Some extended car warranties may also cover repairs for typical car wear and tear. When it comes to extended warranties, there are several options available. Some extended warranties are based on certain areas of the car.
For example, you may be able to get an extended powertrain warranty, which will cover aspects such as the engine, transmission, and other areas of the powertrain. However, this will not cover other elements, such as interior components, air conditioning, or exterior elements, such as the transparent coating, paint and body panels. Car repairs after an accident, personal or passenger medical bills, liability payments for medical bills or property damage, repairs due to fire, storms, floods, falling objects, vandalism and theft are also covered. A comprehensive warranty is often the most comprehensive extended warranty you can purchase. More comprehensive accessory warranties may include coverage for audio and video equipment, cabin fabrics, and interior panels.
However, in general, extended warranties cover critical mechanical parts of the vehicle, including the engine, transmission, axles, and gaskets. Powertrain warranties cover everything that moves the vehicle, including the engine, transmission, and any power component that reaches the car's wheels. Manufacturer warranties typically cover defects in materials and workmanship while extended warranties can cover both defects and wear and tear. An extended car warranty can be useful if the car has high mileage or beyond the manufacturer's warranty. This coverage is an extension of your car's original factory warranty which includes an annual fee and some limitations.
If your powertrain warranty is active it will cover the cost of replacing a transmission that failed during daily driving. Mechanical breakdown insurance is a type of coverage that can replace the extended car warranty. You can purchase an extended warranty at any time even if you didn't get it when you first bought the car or if you bought a used car with one or more previous owners. It might also be worth extending your warranty if you're concerned about your ability to pay for major mechanical repairs in the future. Car manufacturers often include these secondary guarantees in their main warranty to comply with industry regulations or expand the coverage of atypical vehicle systems. Comprehensive warranty coverage is so comprehensive that it is sometimes referred to as exclusionary warranty coverage.
While there are some cases where it may make sense to extend the warranty it may make more sense to save money each month so that you can cover the cost of repairs yourself in case something breaks. A powertrain warranty is less comprehensive than a bumper-to-bumper warranty but it still offers significant coverage. Extended warranty providers typically offer several levels of coverage including benefits such as towing services rental car coverage and travel insurance. When considering an auto extended warranty it's important to understand what type of coverage you need for your vehicle. It's also important to understand what type of coverage is included in each plan so that you can make an informed decision about which plan best meets your needs.
Knowing what type of coverage is included in each plan will help you determine which plan best fits your budget and provides you with peace of mind.