The price of the extended warranty represents a percentage of the total cost of the product. As a general rule, you should not spend more than 30% of the cost of the product on a product warranty. Another type of extended warranty is the powertrain warranty. In addition to the cost of the plan, the warranty company charges a fee per service call each time you file a claim that results in a hired technician being sent to your home.
The company may charge a higher price for the extended warranty if the customer has a history of claims about their guarantees.