About Extended Warranties for Cars

If your car is not under warranty, you could be stuck footing the bill for costly repairs. That is why many people opt to pay a little money up front to protect themselves from being stuck with a massive repair bill. It makes sense, because today's extended warranties are versatile contracts that cover all types of repairs. They are relatively inexpensive too, when you compare them to the cost of a repair job.

Misconceptions

Extended warranties cost too much to be worthwhile. That is one misconception. There are many cheap extended auto warranties; however, they don't always offer the best coverage. Nevertheless, even the more expensive warranties can offer enough protection to be more than worthwhile, protecting you from potentially thousands of dollars in auto repair costs.

The Facts

Extended car warranties offer coverage for several parts of your car from the drive train to the fuel pump. They will cover the cost of your car repair when a part fails or breaks. They do not cover damage due to a collision. These warranties can be purchased from a warranty company for a set term of years.

Benefits

An extended car warranty gives you extra peace of mind, because you know you won't be responsible for paying for a part that breaks. They can be especially beneficial for those who purchase a used car from a private seller and have doubts as to the condition of the car. An extended car warranty will assure that certain, important parts are protected, when the seller doesn't offer a warranty.

Features

Extended car warranties have several features, including the ability to be transferred to anyone who buys your car. They also offer additional protection for towing, rental cars and transportation back home when your car breaks down far away from where you live. Additional features refer to the terms of the warranty, including the length of time the warranty is in effect, or how miles it covers.

Expert Insight

Buy an extended warranty that covers your vehicle for the parts you are most concerned about. For older cars, drive trains, transmissions and fuel pumps are the most expensive things to repair. So, it makes sense to buy a warranty for them if there isn't one. Chances are the warranty will cost less than the replacement for one of these major parts. Some warranties also cover single parts, and are called single-part warranties. You can get them for fuel pumps, alternators and other major parts. They cost less and keep you covered.

Type

Extended car warranties fall into two categories: single-part and multi-part warranties. Single-part warranties cover only one part like an alternator, and multi-part cover a mixed bag of parts. Not all multi-part warranties cover every part. Only bumper-to-bumper warranties cover everything on your car, from drive train to rotors. They do not cover wear and tear parts like brakes. Only wear and tear warranties cover brakes and rotors. Common sub-types of warranties include transferable, non-transferable and deductible or non-deductible warranties.

Resources

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