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Purchasing a vehicle is a monumental achievement. However, people who buy cars have quite a bit to consider. Of these things, whether extended warranties are worth it for your car is among the biggest. Of course, some owners go for coverage from the manufacturer whereas others use car warranty companies. Still, many drivers wonder if getting an extended warranty for their car is worth it. 

Extended car warranties aren’t cheap and most people don’t use them

One of the reasons some people don’t buy extended car warranties is their price. Naturally, the amount of coverage needed for a vehicle isn’t going to be cheap, but this can be off putting for many. According to Market Watch, the average cost of an extended car warranty from a dealer or third party company ranges from $1,152 and $6,192. Of course, this depends on the vehicle and type of plan.

Car warranties from extended car warranty companies can have downsides
Car with an umbrella | Алексей Белозерский via iStock

Consumer Affairs reports that about 37% of car owners have extended warranties. However, the same survey found that only 10% of people with these types of car warranties used them. It should be noted that other surveys had more favorable results for getting an extended car warranty from companies or manufacturers.

Extended car warranties from companies and manufacturers have pros and cons

There are many reasons why some people decide to get extended car warranties and there is also justification for those who elect not to. In many ways, it does come down to your budget because as mentioned, extended car warranties are not cheap. Drivers also have to be aware that third party extended warranty companies can also have other fees. Still, prices aren’t the only pros or cons.

Pros of getting an extended warranty

We love our cars, but they can be unpredictable. This means that a person could go out and buy a vehicle that’s won all sorts of reliability awards and still have issues that arise after the standard warranty ends. Because of this, car warranties offer peace of mind. This is even the case if you never use the extended warranty. 

This is especially true for drivers who may not have the income needed for a significant repair but can afford the cost of extended vehicle coverage. Still, people should weight their options against their needs for extended car warranties

Cons of getting extended coverage

Video about the extended warranty

There are also many downsides to these types of warranties. Many of them have to do with the cost, but there are also others that potential buyers should be aware of. For starters, these warranties don’t cover all damages, and protection for your car from companies rather than the manufacturer is even worse for this as their contacts exist to protect them. 

For example, this expensive coverage may not include the cost of a rental car. This is important because your vehicle could be in the shop for an extended timeframe. Naturally, they don’t pay for repairs resulting from car accidents, theft, or natural disasters. Additionally, there are many reasons third party car warranty companies could void your coverage. Plus, they don’t last forever.

Overall, the decision to get these types of car warranties depends on the driver in question. If you have the money for an extended warranty and believe it could come in handy, many people would agree with you. Additionally, if a major repair would be impossible on your budget but you can afford coverage, it could also be a great idea. Still, many people elect not to get extended coverage.