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3 minutes read. Published November 28th, 2022.

Written by Jackie Lam Written by Contributing writer Jackie Lam is a contributing writer for Bankrate. Jackie write about automobile loans. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate from late 2021. They are passionate about helping readers to control their finances by providing concise, well-studied information that breaks down complex subjects into bite-sized pieces. The Bankrate promise

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We are compensated in exchange for the placement of sponsored products and services, or through you clicking specific links on our site. This compensation could affect the way, location and when products appear within listing categories, except where prohibited by law. We also offer mortgage or home equity products, as well as other products for home loans. Other factors, like our own website rules and whether a product is offered in your region or within your own personal credit score can also impact the manner in which products are featured on this site. Although we try to offer a wide range offers, Bankrate does not include details about each credit or financial service or product. A car warranty extension can protect you from financial stress in the event that your vehicle needs emergency repairs. However, is an extended warranty worth it? This largely depends on the specifics of the warranty as well as your needs. How much does an extended warranty for your car cost? When you think about extended car warranties, cost is a major aspect. Extended warranties vary in cost in a range of $0 to $1000 each year. The cost is contingent on a variety of variables like the company. What’s covered under your current warranty. The model, make and year of your car. The mileage of your car. Where you live and how often you drive. The cost of replacing parts and labor. Discounts that you qualify for. Other factors that impact the price of an extended car warranty include the extent that you are covered, as well as the amount of coverage and your deductible. The higher your deductible, the lower the price of the insurance. However more deductible you have, the higher your cost. Be aware that if you purchase your extended warranty through an auto loan it will mean that you are paying for not just the warranty but also for interest on the amount. What exactly does an extended warranty include? An extended warranty on your vehicle usually covers unexpected, expensive repairs involving key systems of the vehicle, like heating/air, the engine and brakes. Your exact coverage will depend upon the guarantee you buy that may cover labor, parts or both. Some extended warranties offer optional protection for roadside assistance tires and other vehicle-related expenses that you could encounter. The drawbacks of extended car warranties While the extended warranty of your car could be a great way to save money on the cost of costly repairs, let’s take a look at some of the drawbacks you might encounter when purchasing one. Some repairs are not covered. Because an extended car warranty typically matches the new car’s warranty. It also mirrors the limits such as mileage and the repairs that are covered. Check the fine print and the exclusions list before deciding if the coverage offered is worth the cost. There is a time limit for extended warranty on cars are only valid for the period of the extended warranty. For example, it may extend your original warranty by 2-years and 24,000 miles. If you had a warranty that was 3-years and 36,000 miles, that will mean that the entire warranty will last five years and 60,000 miles. It’s possible that you won’t use it. Among those who did hop into an extended warranty, 45 percent of them tapped onto their warranty extension, according to an . The other 55 percent didn’t. The people who bought one and used it suffered a net cost of over $375. You might not need it at all. Check the track record of the car you’re planning to purchase by doing your researchand reviewing reviews on cars and recommendations from Renee Valdes, senior advice editor at Kelley Blue Book. “If the vehicle is advertised as having , think twice before signing to extend the guarantee,” says Valdes. That money could be used for. Emergency savings can be used to pay for any repair on a car, not just repairs which are covered under the extended warranty with no time limit. If it’s logical to buy an extended vehicle warranty. An extended car warranty can only be used only under certain conditions. Extended warranties can be useful for those who are planning to drive their vehicles for years beyond the bumper-to-bumper and powertrain warranties, Valdes adds. “There’s nothing worse than getting stuck with a big cost for a damaged item on your car that there’s no warranty that covers the product,” says Valdes. If the manufacturer’s warranty has ended, it might be a good idea to hop into an extended car warranty. Warranty information from the manufacturer can be found on the sticker tag on the vehicle’s window. If you’re able to purchase a warrantee, it can help pay for covered repairs. It is helpful to know what will be covered during the first year of owning the vehicle. To avoid costly repairs, make sure you stay on top of your car’s maintenance. “It’s always recommended to be on top of vehicle maintenance to ensure that your total repair expenses are kept to a minimum over the timeframe you own your vehicle,” says Valdes. The bottom line: An extended car warranty is not an option for all. To determine if an extended warranty is worth it make sure you do your research and request a few quotes. Learn about the repairs your vehicle may require in the coming years, and ensure that they’re covered under a specific warranty.

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Written by Contributing writer Jackie Lam is a contributing writer for Bankrate. Jackie write about automobile loans. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate from late 2021. They are enthusiastic about helping readers gain the confidence to take control of their finances by providing concise, well-studied facts that break down complex topics into manageable bites.

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