Yahoo Autos How Much Does an Extended Car Warranty Cost?
If you want to protect your vehicle in the years to come, you might consider buying an extended car warranty. A car warranty offers coverage for certain types of repairs for your vehicle, including issues that affect the engine and transmission. You can buy an extended warranty from your vehicle manufacturer or through a third party, but you may want to compare extended car warranty costs before you commit to one of the plans available.
Compare Auto Loan Rates Here
If you're still uncertain about which kind of warranty you want, consider the cost. How much is an extended car warranty, and should you spend the money to cover the repairs your vehicle might need? Is there a way to get cheaper coverage without losing out on great coverage? As you'll see, trying to figure out how much you'll spend on an extended car warranty isn't always as easy as it seems.
The cost of a warranty depends on several factors, including the make and model of the vehicle and the company you buy the policy from. When you know how much money the extended car warranty costs, you'll have a better idea of whether this kind of policy is the right option for you.
What Is an Extended Car Warranty?
When you buy an extended car warranty, you're buying a plan to protect your vehicle. If something happens to your car, like a complete engine breakdown, the warranty covers repair expenses you would otherwise have to pay on your own. So long as the problem occurs within a specified time frame or before your vehicle hits a specific mileage cut-off, the warranty will cover your expenses.
Two types of providers offer extended car warranties: manufacturers and third-party extended car warranty companies. You'll first have a manufacturer's warranty. This is the warranty you get when you buy a new car. It has a time limit or a mileage limit. At that point, your extended warranty kicks in. Each company offers different coverage options, including coverage for towing or rental cars.
An extended warranty more commonly covers the expenses associated with repairs to the parts of the car you need to drive it. For example, the extended warranty may cover your engine or transmission, but it won't necessarily cover your tires or electronics. Additionally, the warranty might cover your powertrain, but it won't cover oil changes or other routine maintenance.
What Do Extended Car Warranties Cost?
Extended car warranties vary in price. While some extended auto warranties cost just $1000, you'll find plenty of other warranty plans available for several thousand more. Several factors come into play when it's time to assess the cost of your extended warranty:
Vehicle Make and Model
Your vehicle's make and model may make it more expensive to repair, which is why extended warranties cost more for high-end vehicles. Luxury cars are among the most expensive to cover with a warranty because repairs can be so costly. If you have a common car, like a four-door sedan, your warranty will probably be more affordable.
Vehicle Age and Mileage
The warranty provider will also consider the age of your vehicle. An older vehicle or one with higher mileage is more likely to need repairs in the near future. Newer vehicles are generally more reliable, so the likelihood that your warranty will have to pay out is slim.
Level of Coverage
The auto warranty's cost will also factor in how much coverage you'd like to buy. Several coverage options are available depending on issues that are common with your vehicle. For example, if your car is prone to transmission issues, you may want to consider holding on to a drivetrain policy that covers transmission issues. This coverage is a lot less expensive than a bumper-to-bumper option, but you won't get as much coverage.
Deductible
Your deductible is a factor you can change depending on how much you're willing to pay if your vehicle needs repairs. You can choose to lower your deductible and pay a higher fee, or you can raise your deductible and pay a lower fee. Play with this figure to make sure your warranty is cost-effective.
Coverage Length
The warranty provider also looks at the covered period, which is another factor you can change. If you choose an extended warranty that lasts five years, you'll likely spend more than if you were to buy a warranty that covers just three years. You'll also have the option to choose a mileage cap on your coverage.
Provider
The warranty provider is a key component in figuring out your extended warranty costs. For example, a manufacturer's warranty may cost more than a third-party warranty. Plus, if you buy a third-party warranty, you'll have more options to choose from. You can compare extended car warranty costs and coverage options based on your budget.
How Can You Make an Extended Car Warranty More Affordable?
If you're unhappy with the cost of the extended warranty quotes you receive, you might want to know about different ways you can make your plan more affordable. If you buy your warranty at the dealership when you finance a car, you can roll the cost of your warranty into your auto loan. This means you'll pay off the warranty each month when you pay on your car loan. While you may pay slightly more for your warranty in the long run, you may feel the impact less with monthly payments.
Which Type of Extended Car Warranty Is Right for You?
If you've been shopping for an extended car warranty, you can't get an accurate quote without deciding which kind of warranty is right for you. You can choose a plan based on what kind of coverage you think you'll need. Knowing the types of extended warranty options available ensures that you get the right coverage for your vehicle.
Bumper-to-Bumper Warranty
A bumper-to-bumper warranty is the most comprehensive option, which is why it's also one of the most expensive options on the list. This coverage is for all parts and systems in your vehicle. However, it doesn't cover routine maintenance or wear and tear damage. You can cover virtually every part of your car with this kind of extended warranty.
