When you buy a car, whether new or second-hand, it will come with a warranty. A car warranty is a type of insurance that offers financial coverage if your car runs into trouble.
Most warranties last between one and three years from the date of manufacture. If you’re buying a second-hand car, the warranty is usually valid for three to six months and it will be specific to the manufacturer. For example, if you’re buying a previously-owned Ford, you’ll be offered a Ford extended warranty.
What Does an Extended Warranty Cover?
Car warranties cover the costs of repairs associated with your vehicle’s engine, fuel system, suspension, steering, clutch, gearbox, and electrics. They don’t provide coverage for general wear and tear or the costs of repairing car diagnostic tools or extra gadgets.
How Much Do Extended Car Warranties Cost?
The cost of your extended warranty will depend on the type of vehicle you drive and the coverage you choose. Most warranty providers offer multiple plans, all with varying levels of coverage.
Going for a warranty that covers a wide range of car faults will cost you more but will also reduce your costs if something goes wrong with your car. You may also be able to add extra coverage for specific issues to your policy, which will affect the total price.
Benefits of Getting an Extended Warranty
Unlike auto insurance, warranties aren’t mandatory. You may choose to sign up for one or risk having no coverage and pay for future repairs out of your own pocket.
There are many benefits to having an extended warranty on your car. Let’s run through some of these benefits.
Reduced costs if something goes wrong with your vehicle
The most obvious benefit of having an extended warranty is the reduction in your expenses if and when there is a problem with your car. Your warranty provider will cover some of the costs of repairs and replacements to get your car up and running once again.
Access to top-quality mechanics
When your vehicle is under an extended warranty, you will gain access to the best mechanics. Faults in your car will be fixed almost immediately to minimize any disruptions to your daily living.
You can also save time and energy finding a great mechanic yourself. Your warranty provider will work with you to find the best mechanic or garage to fix the car faults that you’re dealing with, making things extra easy for you.
Peace of mind
Another major benefit of having an extended warranty is the peace of mind that it provides. You can relax knowing that you won’t be forking out major bills if your car engine malfunctions or the suspension falters.
You can minimize your money worries and avoid setting aside a large emergency fund when you have an extended warranty. Instead of saving ‘just in case something goes wrong with your vehicle, you can spend your money on other things.