The Cost of an Extended Warranty for My Car
Many people buy extended warranties because they want to have peace of mind in knowing that a major repair or replacement will be covered. The cost of an extended warranty varies depending on the type of coverage you choose (bumper-to-bumper, stated component, or powertrain), the vehicle’s make and model, and the duration of the contract. Some extended warranty plans also include prepaid maintenance or tire protection. The best way to determine whether an extended warranty is worth it for your specific vehicle and budget is to get a quote from several providers.
The company that backs the extended warranty will have a significant impact on your plan’s costs. Read online reviews to see what others think about the company and the quality of their service. A reputable company will have a good track record and will provide a clear outline of what is covered and not.
Be wary of warranties backed by the dealership where you are purchasing your vehicle. Dealerships often inflate the prices of their extended warranties to earn commissions, which is why it’s important to compare quotes from different third-party providers and the manufacturer. You can also save money by buying the extended warranty at the same time you’re financing your car, as it can then be rolled into your loan payment.
It’s important to understand what is and isn’t covered by an extended warranty before making a decision to purchase. For example, most extended warranties do not cover normal wear items like tires, brake pads and mufflers, which can be extremely costly when the vehicle reaches high mileage. In addition, extended warranties often have a deductible that you must pay out of pocket before the provider covers the cost of a repair or replacement.
Some extended warranties also restrict where you can have repairs done, which can be frustrating if your car breaks down while traveling or in an unfamiliar city. Then you’ll need to find another repair shop to fix your vehicle, possibly incurring extra costs. Additionally, it is possible that the manufacturer’s original warranty and your extended warranty will overlap at the same time, which can leave you paying for both contracts while not receiving any benefits.
Toco Warranty Corporation
This company is a relative newcomer to the extended warranty industry, but they’re already making a big splash. Toco offers an affordable option with no down payment and the ability to pay in monthly installments. They also offer a 30-day money back guarantee, which is a plus if you decide not to continue with your policy. The company also allows you to transfer your warranty if you decide to sell your vehicle. extended warranty for my car