An extended car warranty can be a good way to protect yourself against covering the cost of repairs to your vehicle after the manufacturer’s warranty has ended. However, they aren’t always a good purchase for everyone, and there are many important considerations to make when deciding which warranty is best for you.
Read on to discover the different types of extended car warranties out there and some other useful information which will help you find the right deal for you.
What do these Warranties Cover?
The types of damage an extended car warranty covers will depend on the individual warranty, with a more comprehensive warranty costing more than one which is fairly barebones. However, there are some general rules which apply to what extended car warranties typically cover.
For example, they usually don’t cover the cost of fixing a known defect or any damage to a car’s interior or its paintwork.
Types of Extended Car Warranties
Bumper-to-Bumper warranties cover the cost of repairing most types of damage to your car, with a few limited exceptions.
It’s important to note that they don’t cover the cost of the standard maintenance of a car, so you’ll still have to pay for things like oil checks and top-ups.
Powertrain and Drivetrain Warranties
Powertrain warranties cover any damage to the powertrain of a car, which includes its engine and gearbox.
On the other hand, a drivetrain warranty only covers the cost of repair work needed on the transmission of a car, in addition to a few other related minor components.
As powertrain warranties cover more components which may be potentially damaged, they are significantly more expensive than drivetrain warranties.
Used Car Warranties
As you can probably tell from its name, a used car warranty is simply a type of extended car warranty that can be purchased for a second-hand car. There are various different types of used car warranties, including bumper-to-bumper warranties and powertrain warranties.
It can sometimes be quite complicated to buy a warranty for a used car, and it’s important to make sure that the car is in a good state and doesn’t have any major existing damage or defects which may result in your warranty being voided.
How Much Does an Extended Car Warranty Cost?
The cost of an extended car warranty is dependent on a multitude of factors, such as the level of coverage you want and the value of your car. However, for most cars, you should expect to pay anywhere from a few hundred dollars to around $1,500 per year of cover.
An extended car warranty can be a smart purchase, especially if your car is quite expensive and would therefore be pretty costly to repair.
As discussed, there are many different factors to consider and it’s a good idea to read reviews on extended car warranty providers so you can get a sense of what they’re like to deal with before committing to a warranty with them.
Also, it’s always worth shopping around to look for a better deal – and it’s equally important to make sure you fully understand the terms and conditions before parting with your money, as breaching the T&Cs could result in your policy being voided.