What Extended Warranty Is and What It Does

Owning a vehicle is expensive. Even after you've paid for gas and insurance, you still have licensing fees.

Maintenance and repairs for your car are another cost you might overlook. Each year, Americans spend about $850 on maintaining and repairing their cars.

Eight hundred fifty dollars a year could probably be put toward a few other things. One of the reasons you may want to consider an extended warranty for your car is because of this.

car warranty service

The purpose of this guide is to explain the car warranty service and what it covers. In our final section, we'll explain how to find the best auto insurance coverage.

What is an Extended Warranty?

Exactly what does an extended warranty for a car cover? The term extended warranty refers to a product that covers repairs beyond the time limits of a factory warranty.

Manufacturers cover repairs under factory warranties. These warranties ensure the manufacturer will pay for certain repairs.

The warranties are only valid for a limited time. Your vehicle repairs will be on your own dime once your warranty expires.

The manufacturer's warranty does not cover the repairs after the manufacturer's car warranty service period has expired.

You may be able to buy an extended warranty from the automaker. Similar protection plans are also available from third parties.

There are many types of extended warranties.

It's common to hear people refer to "vehicle service contracts" and "vehicle protection plans." These are the same thing.

According to official terminology, car manufacturers can only offer extended warranties. The warranties must accompany the purchase of the car. Third-party warranties or warranties that you can purchase after the sale of the vehicle are not extended warranties.

This is a matter of professional jargon. It leads to the same result. After the manufacturer's warranty expires, your car is covered by an "extended warranty" and a vehicle service contract.

Expired warranties versus insurance

Another area of confusion is the difference between insurance and extended warranties. Some repairs to your car might be covered by both. But the circumstances under which you are covered will vary.

If someone breaks into your car or you are in an accident, your insurance will cover the repairs. In the event that your powertrain fails, your insurance company will not pay.

Fortunately, a car warranty service covers this. Generally, an extended warranty will cover components that fail for reasons other than wear and tear.

Find out what's covered below.

Now that we have the terminology out of the way, you want to know, “What does an extended warranty cover?”.

It depends on your particular situation. A vehicle service contract can be purchased for almost any type of vehicle, whether it is new or used. There are a few factors that determine the coverage you can get:

What is the age of your vehicle? Generally speaking, the newer the vehicle, the better the protection.

How many miles does it have? The same principle applies to how much you use your vehicle since more use means more wear and tear on the parts.

What kind of maintenance does the vehicle receive? If your 1998 car has low miles and is in mint condition, it could be better protected than a rusty 2012 with 200,000 miles.

How to Choose the Right Extended Warranty

Now that you understand the extended warranty definition, you're considering buying one. An extended warranty can be an excellent investment for vehicle owners.

Make sure you choose the right car warranty service for you by taking your time. If you're unsure which service to choose, check out Protection Gurus. You can compare different plans and companies with their help, so you get one that fits your needs.

 

Location: United States

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