For more information about our Warranty, please fill out the form
For more information about our Warranty, please fill out the form
What is an extended warranty? It is actually an insurance policy on your vehicle, a safeguard against expensive, unforeseen repairs. It covers repairs, parts and labor, for a period of time and miles that is right for you. Extended auto warranties are really vehicle service contracts because they cost extra and are sold separately. But to avoid confusion, we will continue to use the term extended warranty since that’s the term you’ll hear most often. There are different types of service plans available. A new vehicle usually has two different types of coverage. A powertrain warranty is responsible for covering your engine and transmission against defects in workmanship that would cause either your engine or transmission to not operate as intended. A bumper-to-bumper (sometimes called “limited”) warranty will cover most other items in the vehicle. In addition to major components under the hood, bumper-to-bumper warranties also cover things like navigation systems, power seats, onboard computers and various other electronics.
When picking out which warranty works best for you, you have a choice to select one with or without a deductible. Just like your auto insurance, the higher the deductible, the lower the policy will cost. The good news is that the deductibles for extended warranties tend to be minimal, rarely exceeding $200, with the most common being $100 or $0.
Many aftermarket warranties offer similar coverage as warranties provided by manufacturers. However, most warranties have exclusions, rules and requirements. Third-party warranties tend to cost less than those offered by the OEM. In most cases, a third-party warranty might be the only available option especially If you’re buying a used vehicle.
Purchasing an extended warranty isn’t the right move for every car shopper, but millions of shoppers who have purchased and used extended warranties are glad they did. If you are thinking of buying an extended warranty, take some time to read the fine print on the contract to make sure the warranty does what you want it to and doesn’t have red tape you’re not willing to deal with.