Does an extended warranty on your car worth it? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial decisions by providing you with interactive financial calculators and tools, publishing original and objective content, by enabling you to conduct your own research and compare data for free to help you make financial decisions with confidence. Bankrate has partnerships with issuers such as, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn money The products that appear on this website are provided by companies that pay us. This compensation can affect the way and when products are listed on the site, such as the sequence in which they be listed within the categories of listing and other categories, unless prohibited by law for our mortgage or home equity, and also other products for home loans. But this compensation does have no impact on the content we publish or the reviews appear on this website. We do not contain the vast array of companies or financial deals that might be available to you. Aaron Greene/Getty Images

3 minutes read. Published November 28th, 2022.

Jackie Lam Written Jackie Lam Written by Contributing writer Jackie Lam is a contributing writer for Bankrate. Jackie write about automobile loans. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate from late 2021. They are dedicated to helping their readers to control their finances by providing concise, well-studied information that breaks down complicated topics into manageable bites. The Bankrate promises

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So, this compensation can influence the manner, place and in what order items are displayed within the categories of listing, except where prohibited by law. This is the case for our mortgage home equity, mortgage and other home loan products. Other elements, such as our own rules for our website and whether or not a product is offered in your region or within your self-selected credit score range can also impact the way and place products are listed on this site. Although we try to offer the most diverse selection of products, Bankrate does not include specific information on each credit or financial service or product. An extended car warranty can protect you from financial stress if your car requires emergency repairs. What is the best way to determine if an extended car warranty worth it? It all depends on the details of the warranty as well as your specific needs. How much will an extended car warranty cost? When you think about extended car warranties the cost is an important aspect. Extended warranties vary in cost and range from a median of between every year. The price is based on a variety of variables like the service company. What’s covered by your existing warranty. The make, model and year of your vehicle. Your car’s mileage. What you live in and how often you drive. The cost of replacing parts and labor. Discounts you are eligible for. Other elements that affect the price of an extended warranty include the length that you are covered, as well as the amount of coverage and your deductible. The higher your deductible, the lower the cost of coverage. However the lower your deductible, higher your cost. Keep in mind that if you purchase your extended warranty with an auto loan, you will be paying more than just for the warranty but also for interest on that amount. What will an extended warranty cover? A warranty extended to your vehicle generally covers unplanned costly repairs that affect the major systems of the vehicle, like heating and air conditioning, the engine and brakes. The exact coverage you receive will depend on the warranty you buy and could include either labor or parts. Some extended warranties offer optional coverage for roadside assistance, tires and other vehicle-related expenses that you could encounter. Extended car warranty disadvantages an extended car warranty can be a great way to save money on the cost of expensive repairs, let’s take a look at some of the cons that might come with getting one. Some repairs are not covered. since an extended car warranty usually matches the new car’s warranty. It also reflects the limitations such as mileage and the types of repairs covered. Look at the fine print and exclusions list before deciding whether the protection offered is worth the cost. There’s a time limit Extended warranty on cars are only valid for the time period of the extended warranty. In other words, it could extend the original warranty by 2-years and 24,000 miles. If you started with an initial warranty of one year and 36,000 miles. That would mean the full warranty lasts five years and 60,000 miles. It’s possible that you won’t use it. If you did decide to take onto an extended warranty, only 45 percent of them tapped onto their warranty extension, according to a . The other 55 percent did not. The people who bought one and used it experienced a net loss of more than $375. You might not need it in the first place Know the track record of the car you’re planning to purchase by doing your research, including reviewing reviews on cars and recommendations from Renee Valdes, senior advice editor at Kelley Blue Book. “If the vehicle is advertised as having look at it carefully before signing to an extended warranty,” says Valdes. That money could be used instead for. The emergency savings fund can pay for any car repair that is not that are covered by the extended warranty — with no time limit. If it’s logical to buy an extended car warranty. An extended car warranty is only useful in very specific circumstances. Extended warranties might work well for those who are planning to drive their vehicles for a long time beyond bumper-to-bumper and powertrain warranty, Valdes adds. “There’s nothing more frustrating than being confronted with a large bill for a broken item on your luxury vehicle when there’s no warranty that covers the product,” says Valdes. If you’re and the manufacturer’s warranty has expired then it could be an ideal idea to get onto an extended warranty for your car. Manufacturer warranting information is on the tag that is on the car’s window. If you can afford to buy a warranty, it can help with the cost of covered repairs. It is helpful to know what will be covered during the first year of owning the vehicle. And to reduce instances of expensive repairs, be on top of your car’s upkeep. “It’s always best to keep up with vehicle maintenance to ensure that your total repair costs remain low over the duration of your ownership of your car,” says Valdes. The bottom line: An extended warranty for your vehicle isn’t suitable for every person. To see whether an extended warranty is worth the cost, do your homework and request a few quotes. Research what repairs your vehicle will require in the coming years and check to see if they’re covered under a particular warranty.

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Written by Contributing writer Jackie Lam is a contributing writer for Bankrate. Jackie write about automobile loans. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers gain the confidence to control their finances through providing clear, well-researched information that breaks down complex subjects into bite-sized pieces.

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