Are Prolonged Automotive Warranties Actually Price It? (2022)

Right here’s our detailed information to assist clear info and bust myths relating to automobile warranties

by Bhavik Sreenath, on LISTEN 06: 45

Prolonged Guarantee could be a perplexing topic. With totally different packages and guarantee time frames supplied by totally different producers and businesses, it will probably all be a bit a lot for a brand new purchaser. So ought to this topic have an effect on your subsequent buy determination? To not fear as we attempt to bust the myths round automotive warranties and can aid you attain a profound understanding by the tip of this text.

How Does an prolonged automobile guarantee work?

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  • An prolonged guarantee refers to a service contract that covers a variety of repairs after the producer’s guarantee is over. The protection of an prolonged guarantee program normally begins after the expiry of the producer’s manufacturing facility guarantee program.
  • A typical Prolonged Guarantee program covers restore and alternative prices {of electrical} and mechanical elements, which in some instances embrace downside areas not lined by the producer.
  • A guaranty program can final anyplace from one to eight years and most producers supply in-house prolonged guarantee packages on the time of buy.
  • Each third-party and producer guarantee packages begin from as little as $1000 and pre-repair deductibles attain as excessive as $100.
  • Guarantee protection can come in useful for those who don’t wish to spend cash later or select to buy a car that prices increased than typical to run and preserve. In instances of reasonably priced and dependable automobiles, the warranties won’t be as helpful particularly for those who stroll round with sufficient financial savings to cowl occasional restore payments.
  • Earlier than shopping for an prolonged guarantee ensure you consider suppliers based mostly on value, protection, and comfort. Additionally, don’t overlook to match insurance policies and negotiate to get the very best deal.

Lengthy Time period feasibility of an Prolonged Warrant Program

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In keeping with Liberty Mutual, listed here are a couple of repairs that value between $500 and $1,000 on common and a few of the most costly objects to interchange and restore together with their common prices.

Water pump alternative$300 to $750
Radiator alternative$500
Timing or a serpentine belt alternative$500 to $950
Airbag alternative$3,000 to $6,000
Transmission alternative$1,500 to $3,000
Suspension system alternative$1,500 to $3,500
Head gasket alternative$1,000 to $1,500

However all the time learn the whole coverage and maintain be aware of every part that’s lined by your guarantee supplier so that you simply don’t get any surprises. All stated and performed, for those who plan to purchase a automobile and maintain it for a very long time, then an prolonged guarantee can come in useful, however for short-term patrons who change automobiles incessantly, it won’t be value the additional money.

Price of Restore vs. Price of Prolonged Warrant

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In keeping with experiences, a median American spends roughly $1,986 on annual car repairs and upkeep. Your mileage might range drastically so right here are some things to bear in mind earlier than you run off to get a guaranty.

  • In case you select to go for an reasonably priced automobile with good reliability data and a trusted vendor community reminiscent of Toyota Corolla or a Honda Civic and might afford to pay for surprising repairs, then it won’t be value splurging on an costly prolonged guarantee program. Nonetheless, an reasonably priced plan can nonetheless aid you reap sure advantages like roadside help and even assist in bettering your automobile’s resale worth.
  • In the event you select to purchase an costly luxurious automobile for long-term use from manufacturers like BMW or Jaguar, then a complete prolonged guarantee program might show to be extraordinarily helpful for you and your pocket. Though you won’t spend all that a lot on periodic upkeep over a extra reasonably priced model, the price of components could be a trigger for concern. Most luxurious manufacturers wish to cram their automobiles with screens and sophisticated electronics which aren’t very dependable and in the event that they do go fallacious can break the bank to repair, so a complete plan that covers digital and electrical programs can prevent a fortune in the long term.

Firm vs. Third-Social gathering Prolonged Guarantee Packages

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Producer Guarantee:

Prolonged guarantee packages offered by the producer are extra handy in relation to making claims and promise to supply a hassle-free expertise. They can be added on the time of buy making it the least cumbersome possibility in relation to prolonged warranties nevertheless you’ll find yourself paying curiosity on it for those who go for any type of financing on the time of buy. So think about a producer plan in instances the place you intend to pay to your automobile upfront.

Third-Social gathering Guarantee:

As is the case with most insurance coverage corporations, third-party guarantee suppliers supply quite a lot of perks such because the comfort of selecting your most popular restore store, reasonably priced plans with versatile fee choices, the power to opt-in even after the producer’s manufacturing facility guarantee runs out, and extra. Nonetheless, processing claims and tying up together with your native restore retailers won’t be as seamless an expertise because the one supplied by a dealership. So think about a third-party guarantee solely after finding out the declare course of and converse to your nearest restore store for the very best outcomes.

Professionals & Cons of Prolonged Guarantee

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  • Saves you cash in the long term particularly if you find yourself coping with premium or much less dependable automobile manufacturers with an costly after-sales community.
  • Most plans incorporate added advantages like roadside help which may show to be extremely helpful and so much cheaper in case of a breakdown.
  • It’s a confirmed means to enhance a automobile’s resale worth as used automobile patrons favor automobiles which can be below guarantee.


  • Select your plan rigorously. It is very important decide a plan that’s complete by way of protection. Among the extra reasonably priced plans won’t cowl a few of the costly elements and you could possibly find yourself shedding cash.
  • One all the time runs the danger of by no means utilizing the guarantee, so for many who maintain altering automobiles incessantly, an costly prolonged guarantee plan won’t be a sensible monetary determination.
  • Overlapping protection is one other situation individuals incessantly run into. Although it’s not going to hurt the consumer in any means, it nonetheless looks like a waste of hard-earned cash.

Right here’s an inventory of prime prolonged guarantee suppliers within the nation:


  • For automobiles as much as 10 years outdated/ 140k miles
  • 100% on-line prolonged guarantee answer with customizable plans
  • File claims on-line 24/7
  • Inexpensive month-to-month funds
  • Name for a quote & get a free $5 reward card


  • Covers automobiles with as much as 250k miles
  • First-rate full-coverage safety for brand spanking new and used automobiles
  • The declare submitting course of is determined by the coverage
  • No-haggle, low-price assure
  • A+ ranking from the Higher Enterprise Bureau


  • Protection for automobiles as much as 20 years outdated
  • Lower restore prices with full safety to your car
  • Inspection is required earlier than a declare may be filed
  • Additional perks with all-inclusive membership
  • Be a part of & save $300 on a safety plan

Choose Auto

  • Claims may be filed 24/7
  • Covers automobiles from all years
  • 30-day money-back assure
  • Name & save $750 on any plan


  • For automobiles as much as 10 years outdated/ 140k miles
  • Prolonged car warranties that’ll offer you peace of thoughts
  • The declare submitting course of varies per coverage
  • 30-day money-back assure
  • Choose your restore store
Bhavik Sreenath

Bhavik Sreenath

A eager automotive fanatic with a love for something with engines. He loves discovering the world of automobiles and know-how to discover new boundaries within the discipline of modern-day journalism.  Learn full bio

Concerning the writer

Patrick Moore

Patrick is our chief editor and he's very passionate about cars. He has a bachelor's degree in marketing and he studies journalism. His favorite brand is BMW and he drives an X5 series. When he's not writing for, he enjoys spending time with his family and 9 years old son.

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