With the help of an extended warranty, protecting yourself against having to shell out a small fortune just to cover the repair costs of a vehicle, can be an absolute lifesaver. While undeniably allowing for that extra peace of mind, is getting one truly worth the cost? And if so, in which cases is this a recommended path to take?
- Understand the limitations of a factory warranty
When buying a new vehicle, you’re going to get a factory warranty with it, but the problem with this is that it does not quite cover every possible scenario and comes with its own set of limitations. While certain ‘wearable’ parts of your vehicle will be protected by it and thus replaced for free (think windshield wipers and tires), oil maintenance or tire rotation is a whole different thing.
As you might have guessed, it’s not included. Due to this, certain brands like Hyundai have started to offer a wide selection of Hyundai extended warranties, allowing you to protect your investment against various unfortunate events (particularly those not covered by the original factory warranty).
- Eliminating the fear of unforeseen costs
Try to picture the mental burden of being involved in an accident. You may very well still be shaking from the shock and physical trauma, only to experience more gloom once you visit the repair shop and have the mechanic estimate the repair costs. Not exactly what fairytales are made of, right?
Thankfully, an extended warranty tends to cover the areas that other types of insurance and warranties don’t, so your peace of mind can be established once again. Depending on the level of the warranty you decide to purchase, you may even be eligible for a temporary replacement vehicle you’re free to drive around until they get you main one repaired.
- Ultimately, it’s about balancing the risk against potential savings
The more likely your car is to break down on you, the more it makes sense to get an extended warranty. Generally speaking, if you’re driving a used vehicle, going the extra mile and getting an extended warrant is probably a smart idea, since you never know when it might leave you hanging. Moreover, if your lifestyle or career demands that you always have a reliable pair of wheels by your side, this is another scenario that greatly steers things in favor of you getting one.
To make the final decision, though, you’re probably going to need to do some math and also be familiar with the average repair costs. Can you afford paying for a sudden expense out of pocket? Which scenario do you believe will lead to you saving more money in the end? Finally, as a responsible vehicle owner, it’s important to realize that certain things can actually void your warranty, and not servicing it regularly is one of them. So make sure you do your due diligence and not get trapped in an unfortunate situation that could have been prevented.
In the end, many people choose to allow themselves a good night’s sleep, knowing that opting for an extended warranty is what’s going to allow them to carry on without breaking the bank. Still, making the final call depends on your goals, preferences, and what you believe is the better investment to make. In any case, knowing your options when it comes to car insurance is absolutely essential for you to make an educated buying decision.