Is it worth getting extended car warranty?

 Is a used automobile warranty necessary, or is it more cost-effective to pay for repairs up front? Our guide explains how warranties for secondhand cars operate and if they're worth the money.

Many new car warranties are only good for a few years – three years being the most typical – so if you own or acquire a car that is older than that, you will be responsible for the expense of repairs. Purchasing a used automobile warranty is another option.

Whether your manufacturer's new-vehicle warranty has expired or you've recently purchased a used automobile, there are a plethora of third-party warranties to choose from. Used car warranties claim to provide financial peace of mind by covering the cost of repairs if your car breaks down, but we've discovered that many come with exorbitant rates and restrictive terms.

What does a used car warranty cover?

You would think that warranties for secondhand cars would cover any repairs that aren't due to normal wear and tear (a standard exclusion). However, when we've looked into a number of third-party warranties in the past, we've found a slew of terms, conditions, and limitations, all aimed at limiting when the supplier has to pay out. The countless pages of small type might be perplexing and confusing. For example, if a warning light prompts a trip to the garage, the defect may not be covered by your warranty.

The cost of warranty cover:

According to past studies, many used car warranties are more expensive than the typical repair expense for a used family car. Most warranties can be tweaked, but doing so will raise the price, and once you've got the coverage just right, you might find yourself with a plan that can't compete with the low average repair costs for most used automobiles. On the other hand, don't be fooled by a low-cost bargain that includes a laundry list of terms and conditions that is as long as your arm.

Should you buy it?

When you consider customary exclusions and high premiums, as well as the low average annual cost of car repairs, it's tough to justify the cost of many used car warranties. A car in the garage is stressful enough, and haggling with your warranty provider over what constitutes wear and tear in order to get your garage fees paid is an added hassle you might do without. Consider purchasing a manufacturer extended warranty when purchasing a new automobile if having a warranty to cover your car as it ages is important to you. These have fewer exclusions than third-party competitors.

Terms and conditions:

Even before you try to wrap your head around the imprecise terminology that are open to interpretation, wading through the seemingly endless terms and conditions of most car warranties is a test of patience. Unfortunately, if you want to know exactly what coverage you're paying for, you'll have to read your policy. This alphabetical guide will assist you in deciphering the lingo.