It makes total sense to get coverage in the most important investments and assets in your life, and that includes getting an extended car warranty for your vehicle. A warranty plan serves as a sound backup for when your car is damaged and needs to be repaired.
Though there’s no strict enforcement in terms of getting an extended vehicle coverage, the financial risk aspect can prove to be too great to not consider one. Think of extended car warranties as insurance policies- in the instance that your vehicle is damaged, the costs of repair will be covered. You can save thousands of dollars if you have an extended warranty for your vehicle. It covers the cost of all small repairs quite nicely as well, which is included in the terms regarding your protection plan.
Are Extended Car Warranties Worth It?
Extended auto warranties can come in very handy when you need to cover costs that aren’t included in stock manufacturer warranties. As you may know, many new vehicles come in with their own factory warranty, and this covers a number of mechanical breakdowns in a set period of time. An extended warranty is like an extra coverage for your new car which covers some of the perks that aren’t included in a factory plan, i.e., rental cars for when the car is in the shop for repairs, towing services and roadside assistance.
You will be responsible for the repairs for your car once the factory warranty runs out. You can protect yourself from having to come up with large out-of-pocket expenses when you avail of an auto extended warranty plan. These plans often start when the original warranty expires and offers the basic warranties as a factory plan and then some.
Vehicles will be more prone to car breakdowns and will need frequent repairs as they age. With an extended car warranty, vehicle owners won’t have to worry about their cars breaking down in inopportune times while still having the coverage to get their cars repaired with the extended plan.
Car owners can save a significant amount of money over time when they buy an extended car plan for their new car. It’s an upfront money-saving endeavor that’s worth buying as soon as you can get them because the newer the car, the less the warranty premium.
Savings begin as soon as you get the extended warranty program for your new car. The difference in costs is significant- for example, a BMW X-5 will rack you up an approximate amount of $6,960 in repairs over the next 5 years, but getting an auto extended warranty for it will only cost you approximately $5,343. You’ll save a total of approximately $1,600 when you buy the extended plan for your new BMW.
What’s more, you’ll get shielded from eventual inflation of costs. It’s simple- car extended warranties can be bought at a fixed price when you get it, while costs of labor and parts are affected by price inflation. As long as you have coverage over the vehicle parts, the repairs are practically paid in full no matter how much they’ve gone up over the years.
If you’d like to avoid the hassles of haggling, then extended plans are perfect for you. All you need to do is to bring your vehicle to the repair shop and the assigned auto warranty agent will take over in your behalf. Price discussion and repair needs will be handled between the two parties so you can worry about other more important life matters instead of having to haggle.
You get bonuses aside from peace of mind when you opt in for an extended auto warranty. You can choose the repair facility (personal mechanic, licensed dealerships), get a rental car and avail of 24/7 roadside assistance when needed. Best of all, an extended plan adds actual value to your car should you decide to sell it. Transferring the plan is an easy and inexpensive process and increases your chances of selling the car at a fair price.
In the end, getting an extended auto warranty is a matter of personal preference. If you have health insurance and homeowner’s insurance, then an extended auto warranty is the insurance you need to protect one of your biggest assets. You get peace of mind and money saved down the road with extended vehicle protection.