Like a manufacturer warranty, an extended warranty is guaranteed coverage for certain repairs and replacements within the term’s length. When you extend your factory warranty with the manufacturer directly, you are legally extending the warranty.
When you purchase an “extended warranty” from a different company, you are buying a new policy with similar coverage, which is why they are legally vehicle service contracts. Depending on the terms, a service contract can have the same coverage as your original warranty.
However, like insurance companies, the coverage may be for only part of a part’s cost. With factory warranties, there are typically no out-of-pocket costs for faulty parts.
While your factory warranty may have been part of your purchase agreement, vehicle service contracts come at a cost.
The cost varies greatly depending on:
· Your vehicle’s make and model.
· Your vehicle’s age.
· The auto warranty company.
· The level of coverage.
Make sure to check auto warranty companies ratings before making a purchase. If an affordable extended car warranty looks too good to be true, it might be a waste of money.
Compare auto extended warranty quotes online, and check reviews from other customers. Make sure you know what coverage you are paying for and that the company is reputable.
You do not want to pay for coverage only to find out that it will not pay for repairs and replacements you need. Alternatively, you may benefit from a car care plan warranty more if you are concerned about paying for routine services like brake pad replacements and oil changes.