The extended warranty is a great way to safeguard your car from unexpected repairs and breakdowns. But it is essential to understand what is not included in the warranty. Generally, basic extended warranties don't cover pre-existing damage, normal wear and tear, or any form of abuse. They also don't cover routine maintenance such as oil changes or tire rotations.
In addition, items exposed to normal wear and tear, noise, vibration, or deterioration are not guaranteed. Noise and smell induced by foreign substances are also not acceptable. Filters, fuses, windshield wipers and bulbs (except headlights) need to be changed after six months and this is considered normal wear and tear and is not covered by the warranty. The clutch of a manual transmission will not be covered either.
Outer items such as sheet metal, glass, moldings, and the like are also not covered by the extended warranty. Hybrid component warranties and electric vehicle (EV) component warranties cover repairs to the battery, electric motor, and other unique components found in an electric or hybrid car. A standalone powertrain warranty covers the mechanical parts that move the car. However, something as simple as adding flat tires to a car that didn't come with them can also void parts of the warranty.
Other vehicle coverages include restraint system warranties, corrosion, emissions, hybrid components and electric vehicle components. CARCHEX is one of those companies with an A+ rating from the Better Business Bureau if you're looking for a guarantee from an accredited company. It is important to remember that car warranties generally don't cover racing with the car on (or off) a track, off-road use, or other non-standard uses. The price of extended warranties varies depending on the provider, the type of vehicle insured and the level of coverage.
Opting for an extended warranty can provide peace of mind as it protects against component failure as the vehicle ages. When you purchase an extended warranty at the dealership at the close of the sale of your new vehicle, you can include the cost of the warranty in the financing of your vehicle. For conventional vehicle owners, keeping an emergency repair fund set aside for auto repairs may make more financial sense than paying for an extended warranty.