Are Auto Extended Warranties Worth the Price?

Vacation time has finally arrived and you’re having the perfect day driving to your favorite get-away. Then you hear a dreadful clanking sound coming from underneath the hood. Not wanting to make things worse, you pull over and call for a tow truck to haul your car to the nearest repair facility.

The service manager tells you that certain parts in the engine have broken—and if that’s not bad enough, your manufacturer’s warranty has just expired. The final repair costs are much higher than you expected and not part of your vacation budget.

What should you do? If you have an extended auto warranty on your vehicle, you don’t have to worry. Yes, your vehicle will still need repair, and delays are inevitable, but your expensive repairs are covered. Even the tow bill is covered. How much better does your vacation feel now?

Are extended warranties worth the price? All vehicles eventually break down, but extended vehicle warranties can save you time and money in the long run. For many of us, one large repair bill can pay for the entire extended warranty cost. You’ll still have to pay for routine maintenance on your vehicle, but auto breakdowns can be even more costly. One big repair bill covered by your extended car warranty (like an A.B.S brake system, air conditioner or transmission failure) will convince you that having a good extended auto warranty is the best way to go.

Is it an Advantage to Buy at Your Dealer?

If you plan on having your car serviced at the place of purchase, it does make sense to buy at your dealership. But many auto owners are searching online today for better deals because doing so can save hundreds. In some cases, the identical dealer warranty plan can be found through online distributors at discount prices. Manufacturers GM, Ford and Chrysler have discount online outlets for their factory extended warranty plans. A quick search reveals their locations.

Do You Need an Auto Extended Warranty?

I have always felt auto extended warranties offer a great value in the market place. With the annual increases in dealership parts and labor costs, protection from these rising costs makes good sense.

Before you purchase, think about the answers to these questions;

1. Does the thought of unexpected auto repairs make you feel nervous?
2. Could a major repair bill strain your budget?
3. Would you feel much better knowing you don’t have to worry about car repairs?
4. Can you afford the increase in your monthly payment?

If you answered yes to these questions, you are a good candidate for an auto extended warranty plan. Follow the buying advice in this blog and you’ll find the best extended auto warranty plan at the best possible price.

About the authors: As an 11 billion dollar U.S. business per year, the auto extended warranty is an integral part of the vehicle ownership experience for millions of Americans.

Written by a group of industry professionals with a combined 30 years experience, WarrantyWatchman.com is a consumer protection site and premier source for information regarding auto-extended-warranties.