What Does Extended Warranty Cover on a Car?

A vehicle’s warranty typically protects against unforeseen repair bills. However, once that manufacturer’s warranty expires, many Americans opt to purchase an extended warranty from a third-party provider like CarShield to protect their cars against costly repairs and replacement parts. These warranties can be expensive, but they offer peace of mind and save drivers money in the long run. The cost of an extended warranty varies depending on the make and model, mileage, deductible amount, and provider. However, knowing what does an extended warranty cover on a car is crucial to making an informed decision.

An extended warranty, also known as a car service contract or vehicle protection plan, is a separate purchase that expands on the factory-issued warranty. It’s designed to help with mechanical and electrical repairs not included in the original warranty, and it typically includes bumper-to-bumper and powertrain coverage. However, some providers may add additional features such as roadside assistance and rental car reimbursement to their plans.

Most extended warranties will require the driver to pay a small deductible for each covered repair, similar to auto insurance. Some warranties, however, have zero deductibles. A reputable vehicle service contract company will list its terms and conditions clearly, so you can compare options before making your purchase.

A premium extended warranty will often include a plethora of extra features, such as towing, roadside assistance, and a free loaner car while your vehicle is in the shop. These extras can quickly add up to a significant cost, so it’s important to carefully consider your budget before purchasing this type of coverage.

In addition to a comprehensive list of covered repairs, an extended warranty should also cover the cost of any labor that goes into repairing the covered component. This is important because labor rates are generally higher than the cost of parts. Additionally, it is possible that the seller of an extended warranty could go out of business or otherwise cease operations, which can leave the buyer with no recourse.

A warranty should also cover any consequential damage that results from a covered repair or part failure. This is usually defined by a “betterment” clause that requires the reworking of the affected component to restore it to its original condition. While this may not be a common issue, it is worth considering when shopping for an extended warranty.

Some common questions about an extended warranty include whether it covers oil changes, tires, and wipers. While these services are considered routine maintenance, most extended warranties will not cover them. Similarly, a battery is not typically included in a policy, but some providers do offer specialized policies that can help with the cost of replacing an electric vehicle’s battery pack. Additionally, an extended warranty will likely not cover cosmetic damage to a vehicle. This may include dings and scratches in the paint or even interior damage such as a broken seat or holes in the upholstery. what does extended warranty cover on a car

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