Anyone who’s ever owned or driven a car is familiar with the concept of car warranties. This is the contractual guarantee that protects new car owners from having to spend money on repairs that occur due to electrical or mechanical faults, and this includes replacement parts and labour costs. If you don’t have a warranty, all these repairs can be extremely expensive.
This is why it’s required by law that car manufacturers offer what is called a “manufacturer warranty” to buyers of brand new cars. This warranty is good for a certain period of time; the minimum length is 2 years. For second-hand cars, the dealer will usually offer a warranty of up to 3 months. In both cases, when the initial warranty expires, you have several options.
One, you can just put money aside to cover any unexpected repairs. However, this option is not only costly but extremely impractical. As your car “ages,” not only does it depreciate in value but it also begins to become vulnerable to mechanical or electrical problems. You will find your vehicle experiencing problems more and more often, and all this will put too much of a strain on your finances over time.
Your second option is to sell your vehicle or have it traded in for a brand new one with a corresponding new warranty. Like the first option, this is a bit impractical, especially if you don’t have the ready funds to spend for a new vehicle just like that.
All things considered, your best bet would be to apply for an extended car warranty. Like the manufacturer’s warranty, this also offers coverage for repairs, replacements of parts, and labour costs, although there might be some differing terms and conditions. You should also keep in mind that different policies have varying levels of coverage for each policyholder. For instance, some warranties might have set conditions, while others are more flexible. The reason for this is because not all car owners require the same level of coverage. A lot can also depend on the make and model of the vehicle as well as its mileage and how old it is.
But what about the extended car warranty cost, you might ask. The costs themselves can vary too, depending on how comprehensive the coverage is. Indeed, some policies can either cost lower or higher than others. In such a case, aside from considering your budget, you will also need to look into the exact parts that are covered in the warranty—since it doesn’t necessarily follow that the cheaper, the better. When considering a policy, it’s important to read the fine print, so to speak, so you will know exactly what it covers and if that is what you want or require.
Finally, check the wording in your policy to see what is and isn’t allowed. There have been cases where warranties were voided due to simple mistakes made in ignorance. For example, if you’ve altered your car in any way or used non-standard parts in repairing it, those actions can affect the validity of your warranty. To avoid this, you must make it a point to talk to your policy provider as to the terms and conditions of your warranty, especially those that are a bit confusing to you.