If you’ve finally purchased your dream car, you can customize an extended warranty to cover costly repairs, take some paperwork off your hands, and keep your car humming for years to come. Sometimes, though, extended warranties aren’t worth it, as they can leave you feeling tied down to your car and might cost you more than repairs would in the long run.
If you’re on the fence about buying an extended car warranty, the trustworthy super app
for car insurance
comparison, Jerry
, is here to help you out. We’ll break down the pros and cons of extended warranties, tips for tailoring the warranty to your needs, and traps to avoid during the process. Most importantly, we’ll leave you prepared to answer the million-dollar question: is an extended warranty worth it for me?
Three benefits of extended car warranties
Extended car warranties can give you peace of mind if you’re buying a car that you've fallen in love with—after all, who wouldn’t want to save time and money on repairs, payments, and paperwork? Extended warranties aren’t all peaches and cream, though, and it’s up to you to decide whether a warranty is the right fit for you.
Here’s a closer look at the biggest pros and cons of extended car warranties.
Pro #1: Save money on pricey repairs
According to AAA
, the average car repair costs between $500 and $600, and complicated repairs can run much higher than that! An extended warranty takes this financial burden off of your shoulders—even if the receipt runs into the thousands.What’s more, modern cars are more complex than ever. If there’s a malfunction with your car’s advanced technology, you can breathe a sigh of relief knowing that you’re covered. Whether it’s a high-tech Tesla
or a heavy-duty Ford
, your vehicle will be with you for the long haul. MORE: How to choose an extended car warranty
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Pro #2: Customize your warranty coverage
Extended warranties give you a unique opportunity to complement your car’s existing warranty by tailoring your extended warranty to your specific needs.
For example, let’s say that your car came with an excellent powertrain warranty but the bumper-to-bumper warranty left a little something to be desired. You can extend the bumper-to-bumper warranty, leave the powertrain warranty as it is, and ride off into the sunset fully covered!
Pro Tip Double-check that your extended warranty covers technology features, especially if you’re buying a brand-new car.
Pro #3: Dealers handle payment and paperwork
Sure, you might have to drop a few extra dimes to get an extended warranty through your dealer, but in exchange, they’ll take care of the paperwork and payment processing.
Without the warranty, you’ll have to visit multiple mechanics, compare offers, and hope you get a fair price for the repairs. If you don’t, you might have to go through the pain of disputing your bill
! With the warranty, though, the dealership will work directly with your car manufacturer to make sure your vehicle is in ship shape and gets only premium parts. Three drawbacks of extended car warranties
Though extended warranties offer plenty of perks, they’re not for everybody. We’ll take a detailed look at the downsides of extended warranties, so you’re ready to make your final decision.
Con #1: The costs might outweigh the savings
At the end of the day, extended car warranties are a wager—you’re betting that the warranty will be cheaper than paying for repairs out of pocket. Most extended warranties will set you back between $2,000 and $5,000.
If you’re getting a luxury car that’s expensive to maintain—say, a BMW
or an Audi
—it might be worth it to invest in the extra coverage. On the other hand, if you’re rolling down the streets in an ultra-reliable Mazda CX-5
, you could skip the extended warranty and be better for it. MORE: The 10 most reliable cars in 2022
Con #2: Extended warranties aren’t all-inclusive
Most extended car warranties cover repairs that are caused by an unforeseen mechanical breakdown. However, if the damage is due to regular wear and tear of the car, you’ll probably be stuck paying with your own money!
On top of that, most car warranties have an exclusion list—that is, things that the warranty won’t cover. The more you pay for the warranty, the smaller the exclusion list will become, but it’ll still be there. Don’t let it ambush you!
Pro Tip Zero-in on the fine print of extended car warranties. Often, they’ll list repairs that aren’t covered, and sometimes they’ll even limit the providers you’re allowed to see.
Con #3: You might feel tied down to your car
Say you bought a powertrain warranty that covers five years of repairs, but you realize after two years of owning your car that you’re ready to switch. Since the extended warranty is attached to your current car, you might have to bite the bullet financially if you choose to buy a new car.
Fortunately, some extended warranties are refundable. So, if you decide that your warranty was a mistake, you might be able to drop the warranty and get some of your money back.
The best way to save money on car insurance
Now that you’ve wrestled with the benefits and drawbacks of an extended warranty, we’re here to give you an easy decision: using car insurance
super app Jerry
to find the best deals. We’d give you the pros and cons of using Jerry if we could—but it’s all pros! Here, we’ll prove it to you:
Pro: You can sign up in 45 seconds and get quotes from over 50 top insurers.
Pro: Jerry’s top-rated app gets you the lowest rates from the comfort of your phone.
Pro: Jerry’s team will help you switch policies—no long forms or annoying phone calls.
But here’s the biggest pro of all: the average Jerry user saves $887 on car insurance!
“Jerry
had a super simple app that was easy to navigate. And their terrific customer service made everything even easier. Plus I saved $700 in a single year.” —Lucia M.
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