If you want to avoid paying thousands for the most expensive repairs, you’ll want to have the right protection plan in place.
But with various coverage options available and terminologies to figure out, finding the right one can be difficult, especially if you’re new to car ownership. (Some of us have been car owners for years and could still use some help navigating it all!)
We’re here to help drivers like you make the best choices so you can find the right extended warranty. After your factory warranty expires, you run the risk of paying out-of-pocket for sudden repairs.
Below we’ll give you a top-level overview of this type of coverage and layout our advice on when is the best time to buy an extended car warranty. You can find out more here about the different ways you can protect your car.
When you buy a new car, the manufacturer includes a warranty that says they’ll cover repair or replacement costs if something goes wrong. They’re like guarantees and referred to as manufacturer or factory warranties. Each manufacturer offers its warranty, so the terms differ from one to another.
Extended warranties, also known as vehicle service contracts, rather than being included in a car’s price, are an add-on. They provide additional coverage from repair costs and give you ongoing peace of mind even when your factory warranty expires. Extended warranties are available from manufacturers or third-party providers.
They usually cover your vehicle for several years or up to a set mileage (whichever you reach first is when it expires). Better plans can come with added benefits such as breakdown roadside assistance and rental car provision.
What are the different ways you can protect your car?
If you’ve only had your car for a few years and you haven’t done many miles, it may still be under warranty with the manufacturer. Here’s how to check.
Check the terms of the warranty in the paperwork or with the dealership. Then, compare with the number of years since the original purchase, performing a brief history, if necessary, on the National Motor Vehicle Title Information System website. Check the mileage against it too. There can be other terms you’ll need to check.
If you think you might already have extended cover, you can do a quick check.
Find the paperwork that came with the car. If you no longer have it, you can check with the dealership or the finance company if you used one. Then compare the mileage limit and years covered to find out if it’s expired.
Whether or not you have cover in place, you might want to consider extended cover now. Read on to find out why.
There are various reasons why every driver should have an extended car warranty in place. Here are the top times to buy:
Dealerships will often ask you if you’d like to purchase an extended warranty when you’re buying a new car. For some, this can save you time and give you peace of mind for longer.
Ask yourself the following questions, though:
If you want an extended warranty from the manufacturer of your car, you’ll almost definitely need to purchase it before the original warranty expires.
If you aren’t set on a manufacturer-issued extended warranty, you’ll be able to buy third-party extended warranties at any time, giving you more flexibility.
If you buy a used car from a dealership, you may be offered an extended warranty. If the used car is outside the original factory warranty, an extended warranty can give you welcome peace of mind and make any repairs you end up needing a lot less painful.
If you’re satisfied, an extended warranty makes sense for you, this is an excellent time to buy one. But first, make sure you check the terms of the cover carefully and consider shopping around to find a better deal.
For new cars the best time to buy an extended warranty is when the factory warranty is about to run out. This means you won’t spend money on it until you’re going to use it. You can also sometimes save money and qualify for a higher level of cover.
Consumer advice website NerdWallet points out you’ll know your car better after a few years of ownership: “You’ll know two things by then that you didn’t when you bought the car new: how much you like it and how troublesome it’s been.” You’ll also have a better idea of how much longer you’ll want to keep it.
Avoid leaving it too late, though, as you don’t want to be left with a coverage gap.
For used cars out of the factory warranty period the best time is when you’re buying the car to make sure you’re always covered, although we do suggest comparing different providers.
It’s up to you, but we’d recommend it. Your insurance policy generally won’t provide any protection against the costs of routine maintenance and repairs. While it certainly isn’t compulsory to have a valid warranty, it can combine with your insurance to provide you with complete cover for your car. Learn more about the difference between car insurance and extended warranties.
It can be. If you’re planning on keeping the car beyond the age or mileage covered by the manufacturer warranty, you can get a good deal by taking out an extended warranty at the time of purchase. You can also get cover and other benefits beyond those offered by your factory warranty.
Remember, it’s best to shop around and find the best extended warranty cover for your vehicle. It can also make more sense to wait until your manufacturer warranty is about to expire.
Read our reviews of the big extended warranty providers – all tried, tested, and honestly reviewed to help you get the best deal.
No. We recommend taking out an extended warranty before your current cover expires. By doing this, you make sure you aren’t left without cover at any point and you can also take advantage of the best offers.
Find out more about extended car warranties in our introductory guide or go to our buyer guide and find the right coverage option for you.
This website uses cookies.