auto warranty
Saving Money

How to Buy an Extended Auto Warranty

Factory warranties that come with a new car purchase only get you so far. You might have a five-year or 50,000-mile powertrain warranty that protects your engine and transmission. Tire coverage and limited corrosion protection may also be a part of the package, but possibly for less time. However, an extended auto warranty covers you for as long as you need in case something goes awry.

In theory, an extended auto warranty is a really good safety protection. If your car breaks down and requires repairs or replacement parts, this coverage will ensure you don’t have to pay out of pocket. The auto industry adds a layer of complexity simply because some companies aren’t reputable or use unclear language when communicating warranty terms. If you want to go for an extended auto warranty, here’s how to do so.

Find a reputable brand

I’ll be the first one to say it. Not every company in the auto industry has your best interest at heart. For many, profit is paramount. However, that’s not a sweeping generalization. There are plenty of companies offering extended auto warranties that really mean well. Here’s a non-exhaustive list:

  • Protect My Car
  • Endurance
  • Liberty Bell Auto Protect
  • Carchex
  • Omega Auto Care
  • CarShield
  • Concord Auto Protect

Ask yourself these questions before deciding on an extended auto warranty

Not all warranty plans are created equal. To help you narrow down your options, here’s a list of questions you can ask yourself. Based on the answers, you can determine which plans check the most important boxes, and which ones you can toss.

  1. How many miles does your car have? Some companies only provide new extended auto warranty plans for vehicles under a certain mileage. This will be relevant in your search.
  2. Are you looking for roadside assistance coverage? Some companies offer this, so determine if it’s a priority.
  3. What’s your ideal range for a monthly premium? What about your deductible?
  4. Would you like to pay a down payment or skip out on it? Some companies offer better plans than others if you choose to omit the down payment.
  5. Will you need rental car coverage while your personal vehicle is in the shop?
  6. Are you interested in added perks, like rewards and repair accessibility? Some extended auto warranties are more bare bones while others have a whole slew of niceties.
  7. How expensive is your car’s value? A pricier ride may want premium coverage.

How to know if an extended auto warranty is right for you

If you don’t want to save money (or you feel like you’re unable to) in order to pay for a potential vehicle issue down the line, you may be better off paying small premiums to protect yourself. Some people might not want to save money while the federal interest rate is low because they’re not getting much bang for their buck in interest yield. In that case, it might be worth it to simply pay the premium.

If you plan on keeping your vehicle through the end of its life, you may also benefit from an extended auto warranty. Your vehicle will inevitably run into issues, and they can get costly in the later years. While your insurance covers damage from accidents, an extended warranty focuses on repairs and part replacements if (or when) your ride breaks down. It reflects the manufacturer’s warranty, but it lasts a lot longer.

 

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Rachel Curry
"Hey! My name's Rachel Curry and I'm a full-time writer who loves telling the world's stories as much as hanging with my dogs (and that's saying a lot). A University of Delaware graduate, I've traveled extensively, living everywhere from Ireland to Thailand. Bylines include Matador Network and Delaware Today."

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