Benefits of an Extended Warranty

Many new car owners are faced with the decision of whether to purchase an extended warranty for their new vehicle or not. To help make the decision a little easier, let’s first define what an extended warranty is.

An extended warranty is designed to protect the owner from repair costs after the original new-vehicle warranty has expired. They can sometimes be called a service contract, vehicle service agreement, or extended service agreement.

These extended warranties typically allow customers to have repairs made to their vehicle, typically with little or no deductible, for an additional period after the original factory warranty runs out. They act as security against unexpected vehicle repairs and ensure that these repair costs are covered without having extra financial stress.

Along with repair benefits, many extended warranties offer other services such as car rental discounts, towing, lost-key services, and trip benefits that can help finance unexpected expenses if you are far away from home and your vehicle breaks down.

Unfortunately, there are some items not covered by extended warranties; these are known as “wear items”. Wear items that aren’t covered by extended warranties are typically parts that need to be replaced over time from normal use and can include tires, brakes and shocks. Every warranty is different from the next, so check the exclusions section to find out what isn’t covered by your warranty.

Many warranties are transferrable to future owners as well. This helps both the buyer and the seller, as it may increase resale value, and it also gives a peace of mind to the future buyer. Transfer fees for extended warranties are usually minimal.

If you are on a fixed budget and don’t want to be surprised by expensive repair bills, an extended warranty may be ideal for your vehicle. This is especially true if you plan to keep the vehicle longer than the original manufacturer’s warranty.

Like any insurance policy, prices vary and each one covers different aspects of your vehicle and repairs that are needed. Review your current warranty and financial budget to choose an extended warranty that benefits and suits your needs the most. Have questions about extended warranty coverage or pricing? Contact us today!

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