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Top FAQs on extended vehicle warranty

An extended vehicle warranty proves to be beneficial if your vehicle warranty has expired and the car is in need of repairs. Having said that, there are times when an extended vehicle warranty that you have purchased at an extra cost may go unused. So, in that respect, you might have to then weigh your choice and evaluate if you actually need one. To give you more clarity, we’ve answered some of the mos

What is an extended vehicle warranty?
An extended vehicle warranty is also referred to as a vehicle service contract. It is offered to the buyer as an option and is helpful when your existing warranty expires and your vehicle needs urgent repairs.

There are certain things that an extended vehicle warranty doesn’t cover. They include new tires, oil changes, routine maintenance, and roadside assistance among others. So, it’s advisable to go through the agreement once before opting for the warranty.

How does it work?
An extended vehicle warranty works almost in the same manner as that of an original warranty given by the manufacturer. First, you need to choose a repair facility; preferably the ones that come under the manufacturer. Your vehicle will then be diagnosed with issues. Based on the warranty, the repair facility relays the claim to the manufacturer. After the repair is done you might or might not need to pay the deductibles. This depends on your service contract.

Once the repair is done, you can take your vehicle home. A service contract covers repair bills and is mostly inclusive of labor costs, parts installed, and any applicable taxes.

Is it worth the money?
Whether an extended vehicle warranty is worth it depends on many factors. For instance, you may want to see if the coverage periods of the manufacturer’s warranty and the extended warranty are overlapping or not. If they are, then it’s of no use because you may pay for a warranty that you are already getting.

Check if your extended vehicle warranty lets you have your vehicle repaired at all the major repair facilities. Also, check what comes under the coverage. To elaborate on this, some extended warranties only cover a certain part of the cost of repair depending on the vehicle’s mileage, which is when their worthiness comes into question.

What are its benefits?
One of the major benefits of an extended vehicle warranty is that it increases the value of your vehicle. With an extended vehicle warranty, you can maintain your vehicle for a longer duration.

While your manufacturer’s warranty may expire in two to three years, you might have difficulties dealing with extended breakdowns and accumulating costs thereafter. That’s where an extended warranty can provide you with protection.

Last but not the least, extended warranties come with services such as providing you with a rental vehicle just in case your vehicle breaks down or providing you with money for meals till the time your vehicle is being repaired.

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