Peace of mind is perhaps the biggest benefit of an extended car warranty. Your mind can rest well knowing that the extended warranty you purchased covers certain expensive scenarios.
You also get flexibility. For instance, a Lincoln extended warranty can offer different levels of coverage for different years or mileage distances. You can choose to have more than 1,000 parts covered, or 113, 84, or 29. Let’s look at the different ways an extended warranty is great for peace of mind.
1. It Is a Form of Insurance That Safeguards You Against Costly Repairs
An extended car warranty is akin to an insurance policy for the major components of your car. If repairs are needed, you pay a deductible that you agree to when you take out the warranty. You budget ahead of time for the warranty so it is a huge help for financial planning. That is especially true if your car is rare or unusually expensive.
What exactly the warranty covers depends on the coverage you select. That’s true with any type of insurance policy. Generally, though, an extended warranty covers important mechanical parts such as the engine, transmission, gaskets, and axles.
The thing about insurance is that it is there when you need it. It helps protect your wallet against unexpected costly repairs. You pay upfront costs (premiums) and a deductible, if needed, in exchange for that protection.
2. It Can Come in Handy if You Are Stranded
Many extended car warranties offer perks such as roadside assistance, key fob replacements, up to two replaced or repaired tires a year, substitute transportation, and even movie vouchers. Of course, roadside assistance is less a perk and more a lifesaving measure if you are stranded somewhere. An extended car warranty gives you that priceless peace of mind.
3. It Boosts the Car’s Resale Value
Some people may not be sure about getting an extended warranty if they think they might sell their car in the next year or so. The good news is that a warranty can be transferable to a new owner for free or for a small fee (do check before signing on the warranty’s bottom line). If a potential buyer is comparing multiple cars, the one with an extended warranty has a leg up on the others.
4. You Can Customize It in One of Many Ways
Factory warranties (the original warranties you get with a new car) do not offer opportunities for customization. The story is vastly different with extended warranties. You should be able to find a warranty that works for your budget and priorities.
You can purchase third-party warranties or original equipment manufacturer (OEM) warranties from automakers such as Ford and Lincoln. Third-party warranties typically have more exclusions but are cheaper. Drivers can usually get third-party work done at any repair shop, too.
5. It May Cover Your Rideshare
If you work as a Uber, Lyft, or another type of other rideshare driver, some extended car warranties cover you. This is especially important because even unexpired factory warranties might not cover you if you experience a vehicle breakdown while driving for work. The right type of extended warranty would, though.
6. It Can Pay for Oil Changes and Tire Rotations
An extended warranty can cover oil and filter changes, tire rotations, other basic vehicle maintenance services, and even one-off brake pad/shoe replacement and battery replacement. If maintenance coverage matters to you, be sure to shop around for the right policy.
7. Virtually Any Car Can Qualify
Whether your vehicle is brand new, rebuilt, salvaged, or so used it has more than 100,000 miles, you can find an extended warranty to cover it. It may require some legwork depending on your situation because many warranty companies have eligibility guidelines.
8. Get the Repairs Performed Pretty Much Anywhere
You can choose a warranty that lets you get the car repaired virtually anywhere rather than make you jump through hoops to find nearby qualifying garages. Local repair shops and dealerships can cover air conditioning, alternator, axle, engine, and other repairs. Just ensure you read your warranty completely before you agree to it so you get exactly the coverage you are expecting.
9. You Can Add an Extended Warranty at Any Time
You do not need to stress about rushing an extended warranty decision. You can add one at any time, including right when you buy a car or after the factory warranty has expired. You can get free online quotes from many places and even a refund (plus perhaps a processing fee) if you decide to cancel the warranty within a certain timeframe. An extended warranty will be there for you if or when you want one.
Car extended warranties are a form of insurance that protects vehicle owners from expensive repairs. The warranties offer many levels of protection and services for various budgets and needs. They provide incredible peace of mind to help people budget and plan financially.