- Wear and tear items (tires, wiper blades, brake pads, etc.)
- Regular maintenance (oil changes, wheel alignment, etc.)
- Weather-related damage
- Damage caused by neglect
Have you ever wondered if you should buy an extended warranty? Adding a protection plan to your vehicle may help you save money on costly repairs down the road. This guide will help you determine if buying an extended warranty for your car is the right choice for you.
Discover the benefits of an extended warranty and learn what questions you should ask before buying a vehicle protection plan. At CARCHEX, we offer Extended Vehicle Protection Plans to cover a variety of vehicle repairs.
Extended warranties are offered as extensions of the coverage provided by a standard warranty, such as a manufacturer warranty or a home warranty. Known sometimes as a service agreement, service contract, protection plan, or service plan, extended warranties increase the length of protection for large purchases. You can buy extended warranties for most major appliances like refrigerators or washing machines, as well as new and pre-owned vehicles.
Once your factory warranty expires, your vehicle is without protection. An extended auto warranty can replace that protection. These service contracts are useful for used cars or cars with higher mileage that need extra protection.
You’ll typically see different levels of coverage. The two most common are:
Extended auto warranties are offered as a way to pay for expensive repairs on vehicles, but they don’t cover everything.
You can purchase an extended warranty through a dealership or third-party warranty company that specializes in extended vehicle protection.
Purchasing an extended warranty for your vehicle offers additional benefits and protections that aren’t always included in a standard warranty. Some of these benefits include:
Cars are complex machines that are still vulnerable to breakdowns, no matter how advanced or reliable they may be. You can potentially save hundreds or even thousands of dollars in repairs with an extended warranty.
We broke down the cost of common repairs on 10 of the 50 most researched cars in 2019, according to Edmunds. The chart below details some of the estimated repair costs for common vehicle issues of popular cars, trucks, and SUVs.
|Car Make and Model||Repair Type||Average Cost Without Extended Warranty|
|Honda CR-V||Head Gasket Replacement||$1,859|
|Toyota RAV4||Brake Line Replacement||$297|
|Toyota Camry||Transmission Replacement||$6,204|
|Ford F-150||Transmission Case Shift Motor Replacement||$284|
|Honda Civic||AC Compressor Replacement||$930|
|Mazda CX-5||Daytime Running LED light failure||$1,100|
|Subaru Outback||Windshield Replacement||$540|
|Jeep Wrangler||Oil Housing Replacement||$730|
|Honda Accord||Starter Replacement||$630|
|Subaru Forester||Suspension Coil Replacement||$1,170|
Common repairs such as those listed above generally happen outside of a manufacturer’s warranty. If your car warranty has expired, these repair costs may have to come out of pocket. Depending on the coverage you choose, an extended warranty may cover the cost of these repairs.
CARCHEX offers several tiers of Extended Vehicle Protection Plans that offer different advantages. You can select from a comprehensive plan, cover your powertrain and a few other select items, or project only the items with the most expensive repairs.
Most manufacturer warranties cover common repairs for a short amount of time or limited mileage—usually three to five years or up to 60,000 miles. On the other hand, an extended warranty from a third-party company like CARCHEX can last up to 10 years. We also include additional benefits such as:
If your vehicle breaks down along the road, CARCHEX will not only help you pay for car repairs, but also transport your vehicle to the repair shop. Additionally, CARCHEX offers rental cars to keep you on the move if your car is in the shop for an extended period of time.
These extra perks can quickly add up to cost savings if you find yourself facing car repairs. Rentals cars and vehicle tows are expensive. You can potentially save hundreds of dollars in expenses before your car is even in the shop.
If you are thinking of buying an extended warranty for your car, take the time to consider the following important questions.
Knowing the potential extended warranty cost is likely one of the most important factors when deciding to buy a vehicle protection plan. Be sure to factor in the make and model of your car, and what the potential repair costs might be. An imported car may be more expensive to repair due to limited access to parts. You should also take the condition of your vehicle into account, as poorly maintained vehicles may not qualify for some coverage.
Your extended warranty could cost from a few hundred dollars to well over $1,000, depending on the level of coverage you choose. You should also be aware of the contract’s deductibles, as contracts could require a deductible of more than $100 for each repair.
When shopping for the best price, be sure to look for warranty companies that offer different levels of coverage. Companies like CARCHEX that specialize in protection plans for vehicles are likely to provide you with several different price and coverage options.
Other companies will require you to spend hours negotiating to get the best price. Reputable companies like CARCHEX won’t make you do this, and will offer you the best price up front as part of our No-Haggle, Low-Price Everyday Guarantee™. If necessary, you can choose an affordable, monthly payment plan to finance your warranty.
If you just bought a new car, it is probably covered by a manufacturer’s warranty. You may think that this is plenty of coverage to keep your shiny new vehicle on the road and out of the repair shop for years to come. However, many manufacturer warranties don’t cover the costs associated with a vehicle breakdown or may expire too soon.
Once your manufacturer warranty expires on your new car, purchasing an extended warranty will provide the protection you need.
Purchasing an extended warranty sooner rather than later, while your car is still new, may make your warranty cheaper. Your car’s age and mileage are factors that determine the cost of your extended warranty. Adding a warranty to a new car will cost less than an older vehicle. For drivers who plan to keep their cars for a long time, this can generate a lot of cost savings.
Many used cars can benefit from an extended warranty. Often, when you purchase a used car, the manufacturer’s warranty has already expired. Unless the owner sold you a warranty, this means that the car is not covered by any warranty, and you’re responsible for repair costs. An extended warranty gives you the option to choose how much coverage is appropriate for your used car.
The best way to determine if you should add an extended warranty to a used vehicle is to consider the reliability of the vehicle. You can start by checking online for lists of the best used cars to get an idea of reliability, and look into your specific make and model’s common repairs.
If you have a used vehicle that is known for needing certain repairs at certain mileages, an extended warranty can be a safe bet.
CARCHEX does not exclude used and CPO vehicles, or vehicles with more than 100,000 miles. So, you won’t be turned away from protection for your used vehicle. After all, older cars with higher mileage are more likely to face a breakdown, so having a warranty with perks like roadside assistance is a major benefit.
Once you know what is covered under an extended warranty, the next question is to find out how long the warranty lasts. Your options will likely be a certain number of years and/or mileage. Most providers have several options, so you can customize your extended warranty to meet your needs.
A high level of coverage is generally going to be active for more miles and a longer length of time than a lower level. Shorter warranties are most useful if you plan to trade in your vehicle in the next couple of years. This allows you to enjoy the benefits of the warranty without the fear that it will go to waste when you purchase a new vehicle.
In most cases, you can transfer your extended warranty to a new owner. Selling a used car with a vehicle protection plan can increase its value. For a small transfer fee, usually around $40–$50, you can move the warranty over to the new owner. The new owner then enjoys the same benefits of the warranty that you did.
Offering to transfer the extended warranty gives potential buyers a sense of protection if they choose to purchase the vehicle. It can also show that you took care of the car and valued its maintenance. The buyer will be more comfortable knowing that there are no concerning repairs needed for the vehicle, and if they come up, they won’t have to foot the bill.
Third-party companies like CARCHEX offer numerous benefits in their extended warranty plans. Unlike dealership extended warranties, third-party providers allow you the freedom to choose your own repair shop. When you buy a dealership warranty, they are likely to require that repairs be made at the dealer or a specific repair shop.
In addition to the flexibility of using your trusted local mechanic for car repairs, CARCHEX provides a No-Haggle, Low-Price Everyday Guarantee™. Many other warranty companies quote you an inflated price and hope you do not try to negotiate. CARCHEX gives you their best price the first time, saving you time and frustrations when buying an extended warranty.
Learn more about CARCHEX’s flexible options by calling 866-261-3457 for a free quote.
The friendly customer service representatives at CARCHEX work with you to determine which coverage level is best for your vehicle. With five levels of coverage and a variety of plans within each level, CARCHEX has an option for every budget.
Many third-party extended warranty providers offer similar coverage plans, such as powertrain or bumper-to-bumper, but not all extended warranty brands have the same level of customer service, reputation and cost-effectiveness.
CARCHEX has the highest BBB ranking among its competitors, with higher customer satisfaction and a host of endorsements and reputable partnerships. Compare our performance with competitors in the chart below.
|CARCHEX||AA Auto Protection||AutoAssure||Delta Auto Protect||Endurance|
|Years in Business||20||30||8||4||13|
|BBB Rating||A+||A-||B||Not Rated||B+|
|Partnerships & Endorsements||CARFAX, RepairPal, Edmunds.com, Autoblog, Sirius XM, Vehicle Protection Association, Goss’ Garage||Allegiance Administrators, Royal||Vehicle Protection Association, Dun & Bradstreet Verified||Consumer Affairs Accredited||Courtney Hansen, Katie Osbourne, and Vehicle Protection Association|
At CARCHEX, our customers are pleased with our Extended Vehicle Protection Plans and customer service. We boast a 99.9% customer satisfaction rating and grade of A+ on Better Business Bureau.
Here are a few reviews from our customers:
“Outstanding customer service representative answered all questions. Also spoke with her supervisor who also was very knowledgeable and friendly! I was very impressed with the professional service and would highly recommend to anyone needing their product.” – Gerald
“My alternator went out on my 2011 Nissan Maxima. I called CARCHEX to set up a claim within minutes they told me it was covered under warranty. CARCHEX saved me a lot of money!” – Jackema
I compared warranties, and this company offered the best deal with the most coverage. [The representative] explained everything to me in detail, which made my decision easy. - Troy”
“The representative I worked with was very knowledgeable, helpful and not pushy. Talked where I could understand him and explained everything very well.” – Cynthia
“Warranty coverage is top rate. Advisors are willing to provide feedback to ensure clients purchase exactly what they need. Coverage details are clear and easy to understand. Coverage prices are comparable to other warranty providers.” – William
Purchasing a vehicle service contract can protect you from unforeseen repair costs. The coverage offered by an extended warranty may save you hundreds, and possibly thousands, of dollars in repairs to your vehicle.
Find out if an extended warranty is right for you by speaking with a trusted provider like CARCHEX and asking the important questions regarding coverage. Call CARCHEX now at 866-261-3457 for a free quote.
Business Dictionary: http://www.businessdictionary.com/definition/extended-warranty.html
NEA Member Benefits: https://www.neamb.com/shopping-discounts/is-an-extended-car-warranty-really-worth-the-cost.htm
U.S. News and World Report: https://cars.usnews.com/cars-trucks/rankings/used
Better Business Bureau: https://www.bbb.org/us/md/hunt-valley/profile/extended-warranty-contract-service-companies/carchex-0011-23015869
These brands and more trust and recommend CARCHEX.
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