Are Extended Car Warranties Worth It?

If your original factory warranty is about to expire, you may be wondering if an extended car warranty is a smart investment. With repairs becoming increasingly expensive, an additional protection plan seems appealing. But are extended auto warranties really worth the money or just an upsell? We'll examine the pros and cons to help you decide.

Why Consider an Extended Auto Warranty?

Once your included manufacturer's warranty runs out, usually after 3 years or 36,000 miles, you become liable for all repair bills out of pocket. Things like the engine, transmission, electronics, and A/C often start needing repairs after this coverage period. An extended warranty can protect you from these major expenses down the road.

Benefits of extended warranties include:

  • Coverage for thousands in future repair costs
  • Protection from unpredictable breakdowns
  • Peace of mind driving knowing you're covered
  • Ability to choose your preferred repair shop
  • Options for rental car reimbursement
  • 24/7 roadside assistance included
  • No out-of-pocket costs for covered repairs

For older and high-mileage vehicles especially, the savings from a single major repair can offset the cost of an extended warranty. 

What Factors Should Give You Pause?

However, Auto Warranty services aren't always the right choice for every driver. Here are some potential drawbacks to consider:

  • Monthly costs can add up over time
  • You may not end up using the coverage
  • Claims may be denied over fine print
  • Warranty may not transfer to a new owner
  • Repairs through dealerships may be required

You'll also want to read the fine print carefully to see what's excluded - warranties never cover maintenance items or wear-and-tear repairs.

Should You Purchase an Extended Auto Warranty?

The value comes down to your individual situation:

✅ Consider it if You own an older/high-mileage vehicle prone to repairs, want to budget for surprise issues, or lack auto repair savings.

❌ Skip it if Your vehicle is still fairly new with years left on the factory warranty or you have money saved for repairs.

The peace of mind of an extended car warranty may be worth it for you. Be sure to get an Auto Extended Warranty Quote from multiple providers like Concord Auto Protect to find the best coverage at the lowest price. Protect your vehicle investment against expensive surprises down the road.

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