What do you need to know about extended warranties?
It helps to know what a general car warranty actually is to know why an extended warranty may be beneficial. Automotive manufacturers and dealerships hype up the importance of warranties all the time without explaining what they are. This leads to a lot of confusion and misconceptions about what they actually cover.
How can I find out if my car has an extended warranty?
Follow these steps to check if you have an extended warranty on your car—and if you’re still covered. The easiest way to check is to find the paperwork you received when you bought the car. If you’re in luck, this will include the details of your extended warranty, which is probably referred to as a vehicle service contract (VSC).
When does the AA extended warranty take over?
An extended vehicle warranty takes over when the manufacturer’s warranty ends, and covers the costs of replacement parts and labour for major (and costly) car parts, so you won’t have to pay for them out of your own pocket.
What do you need to know about car warranties?
Scope: Car warranties have certain parts they cover and certain parts they ignore. Known as inclusions (include) and exclusions (ignore), the scope of the warranty affects how much it covers overall. Comprehensive warranties, for example, cover everything between the bumpers.
What is an extended warranty on a car?
What is an extended car warranty? An extended warranty — also known as a vehicle service contract — is an optional plan you can buy to help you pay for the cost of certain repairs your vehicle may need while you own it. It usually begins when the manufacturer’s warranty expires, but sometimes the two overlap.
When is the best time to buy an extended warranty?
The best time to purchase protection for newer vehicles is while they’re still under the original factory warranty, according to AAA. This helps keep the cost down, and you can get a greater selection of longer coverage terms. For those driving used vehicles, usually the best coverage options are for vehicles with under 80,000 miles.
How long is the warranty on a new car?
Even if you bought your vehicle brand new, it can sometimes be challenging to keep track of warranty terms. Moreover, different parts of your car may be covered under separate warranties. For example, many new vehicles come with a 10-year, 100,000-mile powertrain warranty.
What are the pros and cons of an extended warranty?
It may be tempting to purchase an extended warranty plan to protect against unexpected repair costs. But before you do, consider both the pros and the cons. Pros of an extended warranty. The biggest benefit of an extended warranty is that it can save you money if your car needs a costly repair that’s covered under your contract.