How Much Does an Extended Car Warranty Cost?
The initial few years of owning a new car are relatively worry-free thanks to manufacturers' bumper-to-bumper warranties. With the original warranty covering most repairs, you can drive as you please without concern for various components breaking or systems malfunctioning.
However, as the years go by and thousands of miles add up, not only does the manufacturer's warranty expire but wear and tear occurs. Various items need replacement, like tires, spark plugs, timing belts, and filters. And even though today's vehicles have excellent quality standards, mechanical issues still occur, requiring visits to a repair facility.
But opting for a used vehicle comes with several benefits, too. When you buy a used car, you're likely saving thousands of dollars and still getting behind the wheel of a quality vehicle. If you continue to drive a car you've paid off and taken care of for years, you no longer have a monthly payment and know it's been well-maintained. Or maybe you have good memories and experiences attached to a car you've owned for a while and don't want to let it go.
With the upside to owning or buying a used car, wouldn't it be nice to have the reassurance offered by the original bumper-to-bumper warranty? Not only would you have the upsides of used car ownership, but you could also drive without concern for possible mechanical issues or thousands of dollars in repairs.
That's where extended warranties come in, providing security as your vehicle goes through the years, keeping your finances protected if unexpected repairs arise. But how much does an extended warranty cost? Let's look at extended warranty prices and how you can benefit from signing up for one.
What is an extended warranty?
Extended auto warranties offer financial protection against unexpected repair costs once your original warranty expires. Though you can purchase an extended warranty at any time, typically, these begin once the original one runs out and may overlap with it as well.
Available either from the manufacturer or a third-party provider, extended auto warranties provide different levels of coverage, depending on the plan and your budget. Basic extended warranties might cover only the powertrain, while more costly options protect almost any component of your car.
Different plans offer different benefits, some with additional perks like roadside assistance or rental car reimbursement, allowing you to receive reassuring coverage should mechanical issues occur.
However, finding a reputable extended warranty provider ensures a smooth claims process should you run into trouble, as well as excellent customer service to guide you along the way.
Going with a third-party provider may save you money when compared to the original manufacturer, too.
Remember, generally speaking, two types of extended warranties exist: inclusionary and exclusionary. Inclusionary warranties name a specific list of components covered and only fix those in the event of needed repairs. Exclusionary warranties offer more thorough protection, specifying only the parts they don't cover while paying for all other areas. Exclusionary warranties are more costly due to their comprehensive protection.
Extended car warranties can lengthen your original coverage of a few years up to seven in total, depending on the company you choose, letting you drive with freedom from concern about possible vehicle issues down the road. But most providers require your car to have less than 75,000 miles, so that's important to remember before starting your research.
Buying a used car is a wise financial decision, with the potential to save you many thousands of dollars. But even with the economic benefits of purchasing a used car, you need something that lasts for years to come. Shift's vehicle protection plans provide reassuring coverage mile after mile, protecting you from expensive repairs and also offering assistance when you encounter the unexpected. In addition to covering essential components like the engine and transmission, Shift's vehicle protection plans also provide free towing and rental car reimbursement.
How much is an extended warranty?
Extended warranty prices vary depending on the provider, plan, and the vehicle's make, model, and mileage. An average figure for yearly premiums is $1,000-$2,000.
And while extended car warranties insure you against expensive repairs, most require you to pay a deductible before coverage kicks in. Like car insurance, when you choose a lower deductible amount, your premium rises, with the opposite being true for higher deductibles.
Vehicle type also plays a part in determining car warranty costs. Luxury cars with expensive replacement parts come with higher premiums – up to $3,000 – while more economical models are eligible for lower ones.
The nice thing about choosing the extended car warranty for you is you can conduct research and find the one that suits you best. Providers typically offer varying levels of protection, ranging from basic extended powertrain warranties up to ones that provide bumper-to-bumper coverage. But with increasing degrees of coverage come higher premiums as well.
As you look at different companies before choosing a plan, several factors are essential. Their Better Business Bureau rating lets you know of positive and negative reviews and their previous customers' experiences. Also, some extended warranty plans include extra perks like roadside assistance and complimentary towing. Lastly, a company with a good reputation for customer service, like Shift, ensures you get what you pay for when you need to make a claim.
Car warranty cost: Is it worth the money?
Sure, nobody likes spending extra money if they don't have to. So it's understandable that shelling out a couple of thousand per year for an extended warranty may seem like a needless expense, especially if your car has no mechanical issues.
But when something goes wrong with a car, that's where the cost of an extended car warranty proves valuable, as it saves you from paying for repairs and replacement parts and smooths out the process.
Not only that, you have peace of mind, knowing you have coverage in the event of unexpected vehicle issues, no matter the make and model.
Whether you're in the market for a used Tesla or a supercharged sports car, you want a quality vehicle at a great price. Shift offers fair, no-haggle prices driven by powerful machine learning algorithms and tons of data for its cars and extended warranty plans, too.
Extended warranty cost in summary
Extended auto warranties financially protect you from unexpected repair expenses once the original one runs out.
Though coverage and price depend on the provider and plan selected, an extended car warranty from Shift gives you peace of mind as your vehicle racks up the miles, year after year.
Not only are repairs covered, but additional benefits like free towing, jump starts, and rental car reimbursement make things easier when you encounter trouble on the road.
Though the cost of an extended warranty is an extra expense, it pays for itself when you encounter mechanical problems and by giving you the freedom to enjoy driving.
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All prices are based on vehicle availability and pricing as of
November 29, 2021
Pricing shown is not guaranteed and does not include taxes or other product fees.