Are Extended Car Warranties Worth It?

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A straightforward answer to whether an extended car warranty is worth it or not is –it depends. However, most consumers recommend that such a warranty can be a lifesaver for many others in multiple unexpected situations. Cars are, after all, machines operating on a mechanical and electrical process. There is no guarantee that will not have faults. Replacing or repairing parts of a new or advanced vehicle may cost a giant hole in your pocket. Therefore, having a back-up is always a wise choice.

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Protection of car. Business concept.

Chevrolet extended warranty companies blog content from Olive to make people aware of its extended plan’s necessity and possibilities. In the sections below, we have also attempted to make you understand if an extension is necessary for you or not.

What Is An Extended Warranty?

Before proceeding to whether you need a warranty extension or not, let us understand what is an extended warranty. Such a plan, as the name suggests, is an extension of the already existing warranty that you initiate at the time of buying a new car. However, it only has coverage for selective damage repairs. Extended warranties can be classified into two:

  1. The one offered by the manufacturer

In this type of extended plan, the products’ manufacturer keeps the convenience of the customers in mind.

  1. The other offered by a third party

In such a plan, third parties are usually known to provide better features.

Do You Need An Extended Warranty?

Still, you might be wondering whether you need an extended warranty or not. We have some pros and cons listed below, which will help you better understand why such a plan is necessary and why not.

Pros

  • It may help reduce your financial stress at times of unexpected repairs.
  • You can choose the services you want and plan accordingly.
  • You can also add services which you did not have in your first warranty.

Cons

  • You may not have to use the warranty even after paying for it.
  • It will not cover all the damages.
  • If it overlaps with your manufacturer’s warranty, you have to pay for something you are entitled to without charges.

Things to keep in mind when choosing extended car warranties

When it comes to choosing an extended car warranty, there are several things you need to keep in mind before making the final move.

  • You do not purchase the wrong extended car warranty. Make sure to research them well before you make a decision of buying a vehicle.
  • Go for an extended car warranty that comes with a 100% money-back guarantee. If you are not satisfied with the vehicle coverage you receive, then you can return your purchase for a complete 100% refund within 30 to 60-days.
  • Make sure that you don’t base your buying decision of the extended warranty plan from the information provided in the company’s pamphlet. You should read the original extended warranty contract so that you can review the terms and conditions of the plan before you buy.
  • When it comes to deductible, some companies will let you choose the deductible you want to pay. The more deductible, the less will be the overall cost of the extended car warranty. You need to pay a small charge during the time of purchase and dodge the hassle of deductible once and for all.
  • You will come across numerous car warranties that cover only for the repairs caused due to mechanical breakdown. It’s better to go for the auto warranties that delivers wear and tear protection as it will cover all the parts of your vehicle that break down because of wear and tear.
  • Overheating is a common factor of major mechanical issues when a particular vehicle breaks down. Make sure the car warranty you choose does not exclude the damage caused because of over-heating.

Extended warranty Vs. Car Insurance

It is prevalent to get confused between an extended warranty and car insurance. We will help you differentiate between the two in simple terms. When a specific part of your car is damaged due to abrasion will be covered under an extended warranty, provided that part damage repair is listed in the service contract.

On the other hand, if the same part is damaged in an accident, a car insurance will cover its repair expenses.

Therefore, if a particular part or parts of your car has maximum use in its lifetime and has the chances of wearing and tearing off, we suggest you should go for an extended warranty.

Conclusion

A requirement of an extended warranty varies from person to person. If you are someone who makes rigorous use of your car and has chances of its parts wearing off would be best if you considered an extended warranty. However, the final decision solely depends on you, and we would like to suggest that you should go for an extended warranty only after weighing both its pros and cons.

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Are Extended Car Warranties Worth It?
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A straightforward answer to whether an extended car warranty is worth it or not is –it depends.
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