While extended warranties are often viewed as snake oil in the car industry, they can provide peace of mind for drivers worried about high repair costs or those who may not be able to afford a significant expense out-of-pocket. However, a car extended warranty cost can vary from one provider to the next and can be worth it or not depending on how the plan is used and what kind of car is driven.

Car extended warranty companies are notorious for inflating prices and earning high commissions from the people who sell their products, so it’s important to compare quotes from a few different providers to get the best deal. Some plans come with additional perks like roadside assistance and rental car coverage that can be useful in a real emergency.

It’s also important to consider the type of vehicle you drive and whether or not you have a savings account set aside for car repairs. If you own a mainstream car made by a domestic or Asian automaker, the peace of mind that comes with an extended warranty can be worth the extra money spent. However, if you own a luxury car with expensive parts, a repair bill could easily top your original purchase price, making an extended warranty less than ideal.

According to Consumer Reports, the average car extended warranty cost is $1,214 for a five-year contract and covers bumper-to-bumper and powertrain coverage. These figures are based on the survey results of 1,214 extended warranty buyers who actually used their service contracts.

The number of repairs made during the covered period is another factor that can influence car extended warranty cost. A more frequent need for repairs can lead to higher rates as the warranty company is taking on more risk. You should also consider how much you are willing to pay for your deductible as it will affect the overall cost of the plan.

Typically, an independent car warranty company offers more flexibility and customization options than a manufacturer’s plan. This allows you to select the level of coverage you need and pick a repair shop that’s most convenient for you. Unlike a manufacturer’s extended warranty, which requires you to use their branded service centers, most third-party car warranty providers will allow you to choose any reputable repair facility for your repairs.

It’s also important to consider whether or not the extended warranty company has a good reputation in the industry. You can find out about the company’s track record by reading reviews and checking its Better Business Bureau rating. Also, ask about the cancellation policy and how easy it is to cancel your plan if you decide it’s not right for you. A good cancellation policy will ensure you’re not stuck with a warranty that you don’t use and could end up paying for. In many cases, this can be avoided by contacting a company directly before making any commitments.

By Admin

Leave a Reply

Your email address will not be published. Required fields are marked *