When you buy a car, you need to purchase insurance. Driving without valid insurance is illegal and could lead to you losing your license.
Unlike car insurance, car warranties aren’t mandatory by law. They’re an optional form of insurance that you can choose to purchase if you wish.
There’s no right or wrong answer when you’re considering whether to get a car warranty. The choice is in your hands!
Knowing what a car warranty is and what it covers is important to help you make the right decision. Below, we’ve covered all of the details you need to know about car warranties and whether they’re worth your money.
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What is a Car Warranty?
A car warranty is a type of insurance that provides financial coverage for the costs of fixing a range of issues with your vehicle. Some of the faults that are often covered by a car warranty include those related to the engine, suspension, electrics, clutch, brake pads, and steering.
Brand-new cars come with a warranty of three years. Some warranties expire after the car has driven a total of 60,000 miles. After this point, the warranty expires and the vehicle is not covered for the costs of the above repairs.
When you buy a second-hand car, you’ll be given a three to six month warranty. Once this expires, you have the choice to get an extended warranty, which can last several years.
Extended warranties can be specific to one manufacturer. For example, you can get a Hyundai extended warranty or one that is specifically for Ford cars.
The car dealership will usually offer the relevant extended warranty when you purchase a used car. Alternatively, you can purchase your extended warranty from a third-party provider.
How Much Do You Pay for an Extended Warranty?
The cost of an extended warranty depends on several factors. The car manufacturer and model, the presence or absence of vehicle modifications, and the level of coverage are key influencers in the premium price.
If you’re concerned about paying too much for an extended car warranty, do some research and compare several quotes from multiple providers. You can use third-party websites to check the reviews of different car warranty companies and determine whether their prices are fair.
How Does Having an Extended Warranty Benefit You as a Vehicle Owner?
The obvious benefit of having an extended warranty on your car is the reduction in your expenses if there is a problem with your car.
As long as the fault is covered by your policy, your warranty provider will cover some of the costs of the repairs. You can save money on car maintenance and repairs, and avoid dipping into your savings if your vehicle runs into trouble.
Not only will this help you to manage your finances effectively but it will also take some pressure off your shoulders. You can relax a little knowing that you have the financial support of your warranty provider.
Car warranties are usually affordable and are worth the annual fees if you end up making a claim. If you have several major repairs, you’ll save more money than you’ve spent on your policy, so it’s definitely worth considering an extended warranty if you’re a driver!