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How do extend warranties work?

An extended warranty is actually an insurance policy on your vehicle, a safeguard against expensive, unforeseen repairs. It covers repairs for an agreed-upon period of time and miles. Extended auto warranties are really vehicle service contracts because they cost extra and are sold separately.

Are extended car warranties worth it?

While it may sound like a good idea in theory, extended warranties often come with a high price tag and don't necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.

Are extended warranties worth it?

Extended warranties are rarely worth your money. Products don't break on their own, and when they do, the price of repairs is usually lower than what you'd spend on an extended warranty. Sure, some people have saved a lot of money with extended warranties.

Are extended warranties on used cars worth it?

In general, we don't recommend buying an extended warranty on a used car. Warranty companies are in business to make money, and they've usually done their homework. This means you'll likely spend more on the warranty than any repair costs your car may accrue during the period when the warranty is valid.

What is a good price for an extended car warranty?

In general, the average extended car warranty cost ranges from $350-$700 per year, but every person and policy is different. When your car needs repairs, and you don't have coverage, the mechanic will require payment in full.

How long does an extended warranty last?

True extended warranties extend the coverage limits of a factory warranty. If the original warranty lasts three years and 36,000 miles, the automaker may extend it to five years and 60,000 miles.

How long does extend car warranty last?

The length of the warranty varies by manufacturer, but many offer bumper-to-bumper warranties for three years or 36,000 miles, whichever comes first. Powertrain warranties may last for up to 60 months or 60,000 miles.

What do most extended warranties cover?

An extended warranty is actually an insurance policy on your vehicle, a safeguard against expensive, unforeseen repairs. It covers repairs for an agreed-upon period of time and miles. An extended warranty can help make sure you don't have to pay through the nose for unexpected repairs.

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