Forking money over for car repairs is an inevitable – albeit expensive – part of life. Although owning a car comes with many added expenses, the best way to mitigate some of the financial strain is to purchase an extended auto warranty.
An extended warranty is similar to an insurance plan, but it will cover the costs to repair your vehicle once the original manufacturer’s warranty runs out.
Extended auto warranties come into force as soon as the original warranty expires, and it is designed to safeguard you against the cost of major repairs. If you have an old or unreliable car that’s prone to breakdowns, an extended warranty can be a lifesaver.
Now that you know how an extended warranty works, here is all the information you need to choose the right one.
Choose an Extended Warranty Provider
When choosing an extended warranty provider, you should compare companies online – you can search for extended warranty providers and compare them, for instance, Endurance Vs. CarShield. You will also have the option of buying an extended warranty from a manufacturer or a third-party provider.
Manufacturers sell warranties for their own cars, while aftermarket providers offer them for all models and brands.
Buying your extended warranty from a manufacturer will mean that you have access to specialized technicians. Still, it also means that you will be limited when it comes to choosing your own mechanic to conduct your repairs.
If you purchase your extended warranty from a third-party provider, you have more freedom to choose a repair shop or a specific mechanic.
Consider Your Needs
Typically, extended warranty providers offer two main types of coverage – limited and comprehensive. Limited coverage is the cheaper option because it will usually only cover powertrain or mechanical repairs.
Comprehensive plans offer more extensive coverage, including electrical, audio, and sensor repairs. Although comprehensive cover is the more expensive option, it may be worth it for new cars with advanced technology and features.
Determine the Specifics of Your Coverage
You should decide what coverage you need according to your car’s life expectancy, your annual mileage, and how likely your car is to experience mechanical failure.
The older your car is, and the more you drive it, the more likely it is that it will need repairs at least one point in its lifetime. If you drive often, you’ll also need to ensure you have a high mileage limit on your warranty.
When determining the specifics of your coverage, you’ll also need to set your deductible. If you are likely to make numerous or expensive claims, you should select a low deductible.
You also need to consider your budget – an extended warranty that covers a longer-term and has a higher mileage limit will be more expensive.
How to Get the Best Deal
To get the best deal on an extended warranty for your car, you need to be prepared to do the research and go in fully prepared. Before you even purchase a new car, you should know your requirements to ensure you don’t make any impulse decisions.
Shop around by getting quotes for an extended warranty from several providers – compare what each provider is offering to see who is offering the best price.