A vehicle service contract, commonly known as an extended warranty for car owners, is an optional protection plan that you can purchase to help cover repair costs. The extended vehicle warranty usually begins after the manufacturer's warranty expires, but in some cases, the two protection plans overlap. The extended warranty covers all or part of the cost of certain repairs after the standard factory warranty has expired. It can also cover other items, such as repairing dents, replacing keys, and the like.Extended warranties are primarily intended for buyers who plan to own their car beyond the manufacturer's warranty.
They can be useful to avoid potentially high repair costs in the future. An extended warranty on a car is sometimes referred to as a vehicle service contract. An extended warranty 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.
The warranties provided by the manufacturer cover certain problems with a new vehicle for a specified period of time or miles. If the factory warranty doesn't meet your needs, you can purchase an extended warranty for longer or more comprehensive coverage in the event of mechanical or electrical faults.If you plan to keep your car beyond the manufacturer's warranty expiration, then buying an extended warranty could give you peace of mind going forward. A comprehensive warranty is often the most comprehensive extended warranty you can purchase. Likewise, you may not need an extended warranty if you already have a reliable mechanic or have insurance that offers similar benefits.
If you're buying a new car that's been under the manufacturer's warranty for a long time, an extended warranty can help cover repair costs when parts start to fail.Allstate's extended warranty program is called Extended Vehicle Care and covers the cost of repairing the engine, transmission, brakes, suspension and steering, among other things. Mechanical breakdown insurance (MBI) is generally purchased through an auto insurance company, while extended warranty is generally purchased through a dealer, manufacturer, or outside company. However, for most drivers, extended car warranties aren't used, so the potential benefits aren't enough to justify the initial cost. While manufacturer warranties are a big plus, extended warranties for cars are often not cheap.In general, extended warranties are intended to prevent drivers from paying out of pocket for sudden repairs, since mechanical problems aren't covered by other types of car insurance.
For more information, see WalletHub's guides on insurance against mechanical breakdowns 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. Car warranties generally don't cover acts of vandalism or theft, dents or dents, damage caused by road salt, damage related to environmental or natural disasters, damage from car washes, or normal routine maintenance.Like extended warranties, mechanical failure insurance covers damage to a vehicle's major systems, including the engine and transmission. Drivers can purchase an extended warranty from an outside company, such as Carchex or Endurance, or directly from the manufacturer of their vehicle.When it comes to deciding whether an extended auto warranty is worth it for your vehicle and driving habits there are several factors to consider.
Extended warranties can provide peace of mind knowing that if something goes wrong with your vehicle you won't be stuck with a large repair bill. However, they can also be expensive and may not be necessary if you already have reliable mechanics or insurance that offers similar benefits.It's important to do your research before purchasing an extended auto warranty so that you understand what it covers and how much it will cost. You should also compare different plans to find one that best fits your needs and budget. Ultimately it comes down to personal preference - if you feel comfortable with taking on potential repair costs yourself then an extended auto warranty may not be necessary.
