Do I need an Extended Warranty for My Auto?

If you've recently bought a car or are considering buying one, it's crucial to understand the importance of getting an extended vehicle warranty. An extended auto warranty is just what the name implies -- an extension of coverage for your car.

The auto you currently own might have come with an extended warranty. If so, it's still a good idea to buy an extended car warranty plan. Keep in mind though, the sooner you buy your plan, the better it will be for you. Although you can purchase an extended warranty long after purchasing your vehicle, you will probably end up paying more. Your best bet is to purchase a plan as soon as you possibly can. This will ensure uninterrupted coverage and the best rates.

Many auto dealerships offer extended warranty products that can be paid for at the same time as your auto. Or, you could choose a third party company to provide your extended coverage. You may think that your new auto doesn't need an extended warranty. However, it's hard to forecast what may or may not go wrong. Even with a new car, truck or SUV, things can go wrong. With the rising cost of labor and parts, an extended car warranty can save you a bundle!

When searching for an extended auto warranty, consider plans offered by third party companies in addition to the ones offered by the dealership. Often these third party companies can offer you a better rate and a more comprehensive plan. Be sure that the plan you decide on covers both parts and labor. SSome plans will only cover parts, and in such a case, you'd be stuck paying extravagant labor rates. Nowadays, it's not uncommon for auto repair shops to charge more than $50 per hour for labor alone!

Before paying any money on an extended vehicle warranty, make sure you know all the details of the plan. Some warranties require that you pay a deductible, and some do not. Some vehicle warranties cover parts and labor, while others just cover parts. It's important to find a plan that covers not only mechanical failure, but wear and tear also. Certain plans even provide things like 24-hr roadside assistance in the event that you find yourself stranded by the roadside.

There are many different providers of extended vehicle warranties. You can buy a plan from the auto dealership, a warranty provider with a physical location, or a warranty provider that does business online.

Regardless of where you choose to get your extended warranty from, do some research to make sure you're getting the best deal from the best company. Just like any business, there are good companies and there are bad ones. Choosing the right provider can make the difference between a great extended warranty and one that's not so great!