A car warranty covers repair costs if your vehicle breaks down. Depending on the coverage, it can help you avoid expensive repair bills or even save you money when buying a used vehicle. The cost of an extended car warranty depends on several factors, including the level and length of coverage, the deductible, and the company providing the plan.
Some companies offer free quotes through a calculator tool on their website. Other providers allow you to call a representative for quotes and can explain the different tiers of protection they offer. The cheapest car warranties will typically cover the most basic components in your vehicle, while more comprehensive plans include additional benefits such as roadside assistance, towing and rental car reimbursement.
Many vehicle manufacturers offer their own warranties, which might be cheaper than third-party car warranty options. For example, Ford offers four levels of vehicle service contracts. The most affordable option, Powertrain Care, covers the engine and transmission for up to eight years or 150,000 miles. It also comes with a $100 deductible and includes other features like towing and roadside assistance.
Other car manufacturers, such as Toyota and MINI, also offer their own extended warranties. However, most of these come with a higher price tag than third-party plans. This is because the manufacturer’s warranties usually only cover parts and systems that are considered essential, such as the brakes, clutch, and transmission. Nonetheless, the manufacturer may also provide other valuable services such as trip interruption coverage and towing with some of its warranties.
There are several third-party providers of extended car warranties, with some offering month-to-month plans that can be canceled anytime. Some of the most popular include Endurance and Olive. Endurance has six tiers of coverage, ranging from high-level stated-component protection to a full maintenance plan that will keep your car running at peak performance. The cost of a plan is based on the age and mileage of your vehicle, as well as your driving habits and maintenance history.
While an extended car warranty might help you avoid costly repairs, it’s important to remember that the car may still break down. This is why it’s important to shop for a reliable vehicle and learn how to maintain your car properly once you buy it. Additionally, most extended warranties require a 30-day or 1,000-mile waiting period that’s designed to prevent car owners from purchasing them right before their vehicles break down.
It’s also worth mentioning that a car warranty can be a risky purchase because a company that provides it could go out of business, leaving you with an unenforceable contract that won’t pay for repairs. To avoid this, it’s recommended to shop around for the best price and read reviews about the provider before deciding to buy a warranty. Moreover, the most affordable car warranties will likely be those offered by companies with A+ ratings on sites like the Better Business Bureau. A reputable company should also make it easy and inexpensive to cancel the warranty. cost of extended car warranty