A car warranty can be a good investment, helping you to avoid costly repairs and providing peace of mind. However, a vehicle service contract can also be expensive, and it’s important to understand what factors go into the cost of one before you buy. This article will help you understand the process of getting a quote for an extended auto warranty and give you some tips on how to compare quotes and get the best price for your coverage.
You can get an extended warranty either through the dealership or from a third-party provider. Dealerships often inflate their warranties to make a profit, while third-party providers can offer a more competitive price. In some cases, you can even negotiate the price of a plan.
When comparing plans, look at the car components and systems they cover. Then, do a side-by-side comparison of the coverage to see what is included and what is excluded. It’s also a good idea to check out the warranty provider’s reputation and the way they handle customer complaints. You don’t want to be stuck with a company that has poor customer support or is difficult to work with.
Another factor that impacts the cost of an extended warranty is your car’s age and model. More recent models have a higher chance of breaking down, and the warranty will likely cost more to cover them. It’s also important to consider the amount of mileage you drive each year. High mileage drivers typically encounter parts failures more often and run out of factory warranty sooner than those who commute fewer miles.
Most extended car warranty companies require you to pay a deductible when you need to use your coverage. The amount of the deductible will be taken off the total repair bill by the warranty provider. Some plans have no deductible, while others have a low deductible of $75 to $250. A lower deductible will lower the overall cost of the policy, but it will also increase your risk of paying for a repair that isn’t covered.
The duration of your extended auto warranty can have a significant impact on its cost. Some plans last only a few years, while others extend up to seven. The longer the warranty, the more it will cost, but you may be able to get a discount if you purchase the policy in conjunction with a car purchase or trade-in. extended car warranty cost