An extended car warranty is a service contract that covers some or all of the costs of certain repairs after the original manufacturer’s warranty expires. Many warranties also cover roadside assistance. They can cost thousands of dollars, and the costs may be rolled into your car payments. They are often offered by the dealer, but they can also be purchased from independent car warranty companies. Whether or not to buy an extended warranty depends on your budget, the vehicle’s reliability, and your comfort level with risk.
The main advantage of an extended warranty is that it reduces the amount you have to pay for repair bills if your car needs costly work after the original manufacturer’s warranty runs out. However, there are also some disadvantages to extending the car’s warranty that should be considered.
A major issue with a warranty is that you typically have to pay a deductible, which can be high, before the warranty company starts paying for repair costs. You should find out how deductibles work with your plan and decide whether you are comfortable with this or not. You can also make an informed decision by researching the reliability of your car and determining its age. Some cars are more prone to specific problems, so you can get an idea of what kind of maintenance is needed for your model.
You should also consider the total value of your car and how much it might depreciate. Using online tools like Edmunds can help you keep track of the value of your vehicle over time and compare it to the price of an extended warranty. It is also a good idea to add up any out-of-warranty repair expenses you have paid in the past. This will give you an idea of how much you might save by skipping the warranty.
There is also the possibility that you won’t use your extended warranty at all, in which case it will have been a waste of money. This is an important consideration, since you could have saved that money for other purposes.
If you are still unsure about whether or not to buy an extended warranty, you should request quotes from several different providers and review their terms and conditions. There are a number of online resources that can provide you with free, no-obligation extended car warranty quotes. You should also look at the financial stability and customer service reputation of each provider, which can be found by examining their profiles on WalletHub. If you’re not sure where to start, try one of our car insurance comparisons. These roundups can help you find the best options and receive multiple quotes from top-rated providers. This way, you can choose the right policy for your budget and lifestyle. Candace Baker is a contributor to WalletHub, a personal finance site. She has written about a variety of topics, including car insurance and credit cards. She is a graduate of The University of Texas at Austin. buy extended car warranty