Home Cars 7 Tips for Understanding How Extended Car Warranties Work – 2024 Guide

7 Tips for Understanding How Extended Car Warranties Work – 2024 Guide

by Tracy Finke

Extended car warranties are very important nowadays to provide your car protection for a longer period. Car repairs can be extremely expensive especially if you have a luxurious car. Extended car warranties mainly cover repairs and maintenance for a specific period and miles. Extended car warranties specifically help you with expensive repairs at a much lower price.

You must buy extended car warranties only when the factory warranty is expired. If you are looking for a well-reputed company with years of experience to get an extended car warranty, to cover any repairs to your car head on to this site https://selectautoprotect.com.

Tips for understanding how extended car warranties work

1. Check if the car warranty has actually expired

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Before buying an extended car warranty, you must ensure that your car warranty has actually expired or not. Extended car warranties can be costly and you don’t want to spend money on getting extended warranties when you are still under the coverage of the factory warranty.

However, extended car warranties are mostly beneficial for used cars. If you are buying a used car, it’s more likely you will not be getting a factory warranty. Hence, extended warranties become necessary as a safeguard against expensive and unpredictable repairs of your car.

2. Determining the period of an extended car warranty

It is important to determine the period of an extended car warranty based on if it’s a new car or a used car. If you are buying an extended car warranty, then you must check whether the period of the warranty begins from when the car was originally purchased or after you acquired the ownership of the car.

If you want an extended car warranty for your new car, then consider if you are planning to sell the car anytime soon. If you intend to use your car for a long period, then you should buy an extended car warranty for a longer period, and with more miles only after the manufacturer’s warranty is expired.

3. Check thoroughly what is covered in the extended car warranty

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You must always check thoroughly what is covered in the extended car warranty and based on that you can avail of the services. These extended car warranties come with various plans depending on your budget and your needs. Ensure the warranty plan covers all the common issues you are looking for.

The difference between different plans might have slight changes. But it can make a huge difference when you claim for the services. If it’s a used car, then it becomes more important to select the appropriate plan as it is more likely will require frequent repairs. Take your time and read the documents before you sign and pay for the warranty.

4. Check if you can cancel the car warranty later

There can be many reasons you might feel like canceling the extended car warranty. Some companies give you the option to cancel the car warranty anytime later as per your decision. While some companies have no refund policies. You must also check the terms related to the cancellation of the warranty.

Companies that allow cancellation of your car warranty give you a refund on the prorated amount. If you are paying for the extended car warranty in installments then the number of installments will be reduced keeping the payment amount the same.

5. Does extended car warranties cover scheduled maintenance?

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Extended car warranties don’t cover scheduled car maintenance. You will have to maintain a separate budget for the regular maintenance of your car. Scheduled maintenance is also important for any car and keeps your car in good shape. But this doesn’t mean you don’t need extended car warranties.

The regular maintenance of a car includes oil changes, timing belt replacements, or tune-ups, and these are not included in extended car warranties. Some extended car warranties also do not provide coverage against items like wear out of brake pads, windshield wipers, etc. You might have to incur separate expenses for these repairs.

6. Compare the price of extended car warranties

It is very much important to compare the price of extended car warranties before you buy them as they can be quite expensive. Depending on your requirement you should compare the prices of different car warranties. Extended car warranties can cost between a few hundred dollars to thousands of dollars yearly.

If you are too cautious while driving your car, then you can opt for a cheaper extended car warranty for a standard car. For luxurious cars replacing or repairing any parts can cost significantly high. So it’s better to always have a car warranty that includes every service on repairs.

7. Other additional extended car warranty tips

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It’s not important to buy extended car warranties as soon as you buy a car. You can make this decision later when the factory warranty is about to expire. If you are paying for the car in installments, it’s better not to incur additional expenses on extended car warranties.

It is important to get extended car warranty service from a reputable company with 24/7 customer service so you can get repairs for your car anytime you want. There are even fraud providers who will offer extended warranties at cheap prices. Hence, ensure the company is legitimate and has years of experience in providing warranty services.

Ensure that the provider fully discloses the terms of services included in the extended car warranty. Also, it’s your responsibility to read the documents thoroughly before paying for the services. Companies need to maintain a high level of transparency to avoid any future conflicts.

The Bottom-line

Extended car warranties are a strategic financial decision to make. You must have an extended car warranty if you don’t have enough finances. Moreover, it’s also important to know when you actually need an extended car warranty.

Having a car warranty helps you to find peace when you are driving on the roads and can also save huge expenses on repairs. Here are a few tips for understanding how extended car warranties work that you must follow before buying an extended car warranty.