[Blog] 4 Things You Need to Know about Extended Car Warranties

An extended car warranty is optional vehicle protection that can help you cover certain costs in case of a car breakdown or unexpected car repairs (such as transmission, air conditioner, brakes, steering). An extended car warranty essentially extends the type of coverage one would get with the car’s original factory or manufacturer warrant, so you remain protected from expensive repair costs. Now that you know what an extended warranty is, here are the top 4 questions to ask when deciding if an extended car warranty is the right choice for you.

1. What components will be covered by the extended car warranty?

It is important to know exactly what will be covered by an extended car warranty in order to decide whether it is worth it for you. Although coverage will vary depending on the provider, and the plan that you choose, this is an overview of the most common components that extended car warranties cover based on GuardTree’s article

Powertrain Parts

Extended car warranties typically cover repairs for everything in a vehicle’s powertrain, which includes:

 Additional Critical Parts

These parts are commonly affected by vehicle breakdowns, so it is good to make sure the warranty provider that you choose will cover them:  

Benefits Extended car warranties can also include extra benefits or cover some of the other costs associated with a vehicle breakdown. For example, GuardTree, a monthly subscription-based extended car warranty available in Ontario, covers expenses for roadside assistance, trip-interruption (i.e.: lodging and meals), and car rentals.

2. What components will not be covered by the extended car warranty?

It is important to proactively look at what components are not covered by extended car warranties. These are some of the most commonly excluded components:

Beyond these general exclusions, we always recommend reading the provider’s terms and conditions before signing up. Be sure to keep an eye out for exclusions that are specific to your situation.

3. Does an extended car warranty make sense considering my situation and budget?

If you own an older car or a secondhand vehicle, you may want to consider an extended car warranty or “aftermarket warranty” to help protect you from unexpected, costly repairs that may occur after your manufacturer’s warranty expires. But is an extended car warranty really worth the upfront cost when your car seems to be doing just fine for now? 

To answer that question, you should consider the specifics of your situation. Factors like your vehicle’s age, mileage, and your personal budget all come into play.To help you decide if an extended car warranty is worth it for you, consider this math scenario: here.

4. What should you ask before choosing the right extended car warranty provider?

It’s important to choose an extended warranty that works well for your specific needs. Make sure you can clearly answer the following questions before you choose an extended warranty for your vehicle:

Comparing extended car warranty providers and feeling overwhelmed by all the options? Check out our comparison chart of the top extended car warranty providers in Canada: Canada’s top extended car warranties.

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