Are Car Warranties Worth it?

Casey Louw
Casey Louw
Extended Warranty Specialist
November 30, 2021
min. read

When you buy your car new from a dealership it comes with a standard factory warranty. Depending on your car make, the warranty will cover a set number of years or amount of mileage of coverage. If you purchase a used car it’s a good idea to invest in an extended warranty. An extended warranty is another name for a Vehicle Service Contract and means the same thing. The question is: are extended car warranties worth it? The answer to that question would be yes. We will delve deeper into the reasons why we believe this is the case.

Are Extended Car Warranties Worth it?

Extended car warranties or Vehicle Service Contracts will cover your car in the case of a mechanical breakdown. If your car runs into trouble and you haven’t purchased an extended car warranty you will have to reach into your own pocket to pay for the repair bills. If you invest in an extended car warranty after your factory warranty expires you can save sometimes thousands on repair costs.

Are Used Car Warranties worth it?

If you have a used car you may wonder to yourself: are used car warranties worth it? We would say yes, most definitely. Your used car is even more likely to run into mechanical problems than a newer car, as there will be more wear and tear on the vehicle. You will need to buy an extended warranty. We recommend using Chaiz to source your used car extended warranty or Vehicle Service Contract.

Are Third-party Car Warranties Worth It?

Buying a third-party car warranty is definitely worth it. Hop onto the Chaiz platform and use our handy search tool to input your car’s details. According to your make, age of car and mileage covered top warranties will be listed for you to choose from third-party providers.

So, if you pose the question: are third-party car warranties worth it? The answer would be yes. If your car is covered you won’t need to pay for hefty car repair bills in the event of a mechanical breakdown. A third-party warranty from Chaiz allows you to drive with confidence as well as peace of mind, because you know your car has good coverage.

The Different Types of Extended Car Warranties

You are in the market for an extended car warranty. The two main types of extended car warranties are the bumper-to-bumper extended car warranty and the powertrain car warranty.

Purchasing a Bumper-to-bumper Extended Warranty

The bumper-to-bumper extended car warranty or exclusionary coverage covers more components of your car and is more expensive than the powertrain warranty.

The parts of your vehicle that will be covered are:

If you asked, are car warranties worth it? A bumper-to-bumper warranty/ exclusionary coverage is worth it if you cover big distances in your car as this is the most comprehensive coverage on offer. The further your travel, the greater the wear and tear on your car, so this type of warranty would work for you!

Most of the policies we offer on Chaiz include benefits like towing services as well as gas delivery, roadside assistance and also a tire changing service. Bumper-to-bumper extended car warranties provided by third-party warranty providers differ in price according to your car’s make, age and mileage.

Purchasing a Powertrain Extended Warranty

You are still wondering, are car warranties worth it? We will explore the powertrain warranty to answer this question. Powertrain warranties are a cheaper option and offer less coverage than bumper-to-bumper warranties. This type of warranty covers parts of your car that make up the drivetrain and the power source.

The drivetrain is made up of:

Also included are the transfer case and the drive box. If you don’t cover too much mileage in your car, the powertrain warranty would be a good option for you.

As is the case with bumper-to-bumper or exclusionary coverage warranties, most powertrain warranties come with added perks like towing services, gas delivery, roadside assistance and a tire change service. These additional benefits could come really in handy when out on the road!

Interested? Let's get your quotes

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Third-Party Warranties Are a Worthwhile Investment

We have discovered the answers to the questions: are extended car warranties worth it? And: Are used car warranties worth it? The answer to both these questions is yes. With the help of the Chaiz search tool we make finding your ideal extended warranty easy and convenient. You won’t have to shop around and make endless calls to compare quotes. Our system provides you with the top third-party warranty provider quotes within seconds.

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