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How does an extended warranty 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.
Is extended warranty 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 the money?
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.
How much should an extended warranty cost?
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.
Do I need extended warranty?
If you hope to keep your car for 10 years, and it only comes with a three-year/36,000-mile warranty, you might consider extended warranty coverage for peace of mind for the first couple of years after your new car warranty expires. Cars with high marks are less likely to need costly repairs.
How much will I get back if I cancel my extended warranty?
On the contract, it says, if you cancel within 60 days, you get 100% refund. After 60 days or if you have incurred a claim, a pro rata refund of the lesser unused months or unused miles will be made.
Can I get a refund on my extended car warranty?
How to get your money back. You can cancel an extended warranty at any time, and you'll get a prorated refund for the unused portion of your policy. If the warranty was included in your loan, your car payment won't drop, but you may pay off the car sooner after the refund is deducted from your balance.
How long does it take to get a car warranty refund?
If the warranty was financed with the vehicle, then any refund would be owed to the lender. It does however take warranty companies a notoriously long time to refund money (4-6 weeks).
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