Extended vehicle warranties can be a useful way to save money on car repairs, but it’s important to understand what they do and don’t cover before you purchase one.

What are extended vehicle warranties?

Extended vehicle warranties are also known as extended auto warranties, vehicle service contracts, or vehicle protection plans. They are contracts that provide coverage for repairs to your vehicle beyond the period covered by the manufacturer’s warranty.

How do extended vehicle warranties work?

When you purchase an extended vehicle warranty, you will pay a monthly or annual fee. If your vehicle breaks down during the warranty period, you will pay a deductible and the warranty company will pay for the cost of repairs.

What do extended vehicle warranties cover?

Extended vehicle warranties can cover a wide range of repairs, depending on the plan you choose. Some common items covered by extended vehicle warranties include:

• Engine
• Transmission
• Air conditioning and heating
• Steering
• Electrical
• Suspension
• Technology

What don’t extended vehicle warranties cover?

Extended vehicle warranties typically do not cover routine maintenance items, such as oil changes, brake pads, and tires. They also do not cover damage caused by accidents, negligence, or abuse.

Here are some things to consider when deciding whether or not to purchase an extended vehicle warranty:

• The make and model of your vehicle: Some vehicles are more reliable than others. If you own a vehicle that is known to be unreliable, then an extended warranty may be a good investment. 
• The length of the warranty: Extended vehicle warranties typically range from one to five years. If you are planning on keeping your vehicle for a long time, then you may want to purchase a longer warranty.
• The level of coverage you choose: Extended vehicle warranties typically offer different levels of coverage. Some warranties only cover major components, while others cover a wider range of components. Choose a warranty that covers the components that are most likely to fail on your vehicle.
• The cost of the warranty: Extended vehicle warranties can be expensive. Make sure to compare the cost of different warranties before you purchase one.

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