When it comes to the long-term cost of your car, extended warranties are generally “a bad deal,” Gillis says. In a Consumer Reports survey, 55% of people who bought an extended warranty never used it. Among those who did use the warranty, most saved less on repairs than they paid for the contract. Extended car warranties are worth it if you want coverage to continue after the factory warranty expires.
Without a warranty, you have to cover the repair costs yourself. Unlike a manufacturer's warranty, an extended warranty can provide comprehensive coverage for a longer period of time. Allstate's extended warranty program is called Extended Vehicle Care and covers the cost of repairing the engine, transmission, brakes, suspension and steering, among other things. CarShield sells service plans for vehicles, which are similar to extended warranties and will cover the cost of repairing automotive systems and mechanical parts.
For more information, see WalletHub's guides on insurance against mechanical breakdowns and extended car warranties. There are often many restrictions with extended warranties, including what it covers and where the vehicle can be repaired. Whether you have a used car or a new one, extended warranties are perfect if you need additional coverage or can't afford the costs of unexpected repairs. In general, extended warranties are intended to prevent drivers from paying out of pocket for sudden repairs, since other types of car insurance don't cover mechanical problems.
If you're buying a new car, it's almost a guarantee that you'll hear a proposal for extended protection plans at the dealership. If your car isn't the most reliable, you might be more comfortable buying an extended warranty than without it. The cost of an extended car warranty will vary from person to person, depending on the age of the vehicle, the mileage and the extent of the coverage desired. When you purchase an Endurance extended car warranty, you receive one-year Endurance Elite benefits.
Extended car warranties are worth it if the driver doesn't have enough savings to pay for vehicle system repairs or if he's concerned about the reliability of his car. Vehicle service contracts, often referred to as extended warranties, are a tempting option for consumers buying a used car or for those who want to extend comprehensive coverage for a new car. Once the factory warranty expires, it can be difficult to pay the cost of repairs, replacement parts, and labor needed without an extended warranty. It's also worth noting that mechanical breakdown insurance from an auto insurance company is often a cheaper alternative to a third-party vehicle service plan or an extended warranty.
If you drive a reliable car and save enough to pay for an emergency car repair, an extended car warranty may not be worth what you'd have to pay.