Is an Extended Car Warranty Right for You?

Giulia Nigrini
Giulia Nigrini
Vehicle Service Contract Specialist, Traveler, Car Enthusiast
December 15, 2021
min. read
feet and legs of people wearing jeans standing on the side of a green car.

There is a very good chance that an extended warranty for your car is the right choice for you. Car warranties are meant to keep your vehicle’s most important mechanical components protected in the event of a breakdown. And they also provide other services that greatly benefit a car owner, making overall ownership that bit less stressful. Read on as we explore what an extended warranty is and how it can benefit you.

What is an Extended Car Warranty?

An extended warranty is a protection plan designed to act as an extension to your car’s factory warranty. They are available through your car's manufacturer. A vehicle service contract is similar but it is offered by a third party provider. Some automakers do provide an extended warranty option when your factory warranty comes to an end but they are generally limited and have few added benefits or optional extras. Many vehicle service contracts are more inclusive and have a greater number of additional perks. Both options are there to provide protection in the event of a mechanical breakdown.

Third-party vehicle protection providers generally offer a wider range of plans. They supply optional extras to add to your coverage plan should you use your car commercially or are looking to have a lift kit installed. Plus they provide added benefits such as roadside assistance, fuel delivery, towing services, and so much more.

What does an Extended Car Warranty Cover?

Extended car warranties or vehicle service contracts are available in two main variations, a powertrain plan, listed as the basic plan, or a bumper-to-bumper plan, listed as the best coverage. Your powertrain plans are affordable plans that cover the most critical parts of your car in the event of a mechanical breakdown. While bumper-to-bumper plans are more comprehensive and cover most of your mechanical parts. The powertrain plans also have longer terms than those of bumper-to-bumper warranty plans.

Below is a list of what is typically covered by powertrain plans and what is typically excluded from bumper-to-bumper plans:

Powertrain Warranty Covers:

Bumper-to-Bumper Warranty Does NOT Cover:

What are the Added Benefits?

You may be wondering what exactly are these added benefits? The benefits are services added onto your protection plan to ensure you get quick and reliable service in case you find yourself stuck on the side of the road. The roadside assistance includes winching services, fuel delivery, towing services, trip interruption if you are 100 miles or more from home, and flat tire service. All of this helps in those moments when you have a mechanical breakdown and you want to be sure you have assistance that is efficient and within your plan so you do not find yourself forking out any money unnecessarily.

Is an Extended Warranty Right for Me?

Repair costs can range between $300 and $8,000 depending on the repairs needed and damage done. Sometimes this amount can exceed $8,000 when the damage is extensive or you are driving a vehicle that has more expensive parts. There are labor costs to take into consideration as well. Though your average repair bill is going to be somewhere between $300 and $800 dollars it still means you will need to have at least $1,000 aside in case you need to have repairs done.

Seeing as mechanical breakdowns tend to happen sporadically it is unlikely that you will have a warning before these repairs spring themselves onto you. Granted proper maintenance and care for your vehicle will help lessen the frequency it will happen at some point. An extended warranty or vehicle service contract takes all that stress out of the equation and allows you to drive with peace of mind that you are covered. So yes, an extended car warranty or vehicle service contract is probably right for you.

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