Is Extended Warranty on Cars Worth the Money? - An Insight

They offer you these plans to cover the damage or depreciation money of the item you purchased. In cases of cars, you would be tempted to buy this warranty as you want to protect your vehicle. But the question remains, "is it worth it?"

Extended warranty means increasing the warranty time of an existing purchase which runs beyond the standard timeline. This warranty can be of two types- the product's manufacturer offers one, and the third party provides the other. The former comes with a convenient feature for the consumer, whereas the latter comes with better features.

However, one should not get confused between the extended warranty and the insurance. An extended warranty only works while your car faces any technical problem like wear and tear because of continuous use. On the other hand, insurance will cover the damage caused by any accident.

Even if extended warranty and insurance are poles apart, it is often mistakenly taken as a part of insurance for the car. Hence, a question arises as to whether extended warranties are worth it? As mentioned earlier, this extended warranty is not necessary in every case. So you need to think it through before going in for one.

Getting to know the company

It is essential for you to know about the company very well. Having a vivid idea can help you decide about getting a warranty from that company. It is crucial that your warranty is backed up by a registered company.

Beware of duplicates!

Your car is the most coveted thing in your life (at least in most cases!) So protection it is your prime responsibility. While getting the extended warranty, you need to be careful about getting an authentic one. There is a high chance of getting fooled by a duplicate warranty. So you need to be more cautious

Covers the repair amount

When you purchase a new car, the first thing you dwell on is not getting into any type of accidents where you need to pay a considerable amount on repairs. In the present day, people have faced significant issues with their new cars because of accidents or similar mishaps. Extended warranties often come to the rescue in these scenarios, helping you save more money in the future.  

Help you to retain the car.

You can keep your precious car for an extended period if you have a warranty. There is nothing wrong with buying a premium package or an extended warranty for your favourite vehicle. On the other hand, while you are selling the car, you can get the privilege of getting some extra money if the vehicle is still under warranty.

Offers a flexible package

With time, the industry has evolved a lot. In the 21st century, cars have got various modern features that you may not have imagined before. Similarly, unlike before, the extended warranty plans have flexible packages to offer, where you can choose whatever you want to cover. There are some add-on options that the manufacturer generally provides.

Freedom from extra paperwork

Going through extra paperwork is a real mess. There are generally two types of extended warranty packages available. One is offered by the manufacturer, and the other is by the third party. However, one should consider buying the warranty from the brand or manufacturer as they can assure you of less paperwork. It will be the dealer's job to take care of the paperwork, and you won't have to deal with it. At the same time, the third-party warranty is cheaper than the former one but it may have issues in the long run.

In Conclusion

After reading this article, it is to be hoped that you have gained an insight regarding an extended warranty. Now it is on you whether you want to go for the extended warranty or not. However, you can get a vivid picture regarding this if you scour the internet.