A car warranty is essentially a repair contract limiting a car owner’s financial risk for a set period.
That contract says that your car’s manufacturer, or the company you bought an extended warranty from, will pay for some repairs of your vehicle.
Having a car warranty can help you find peace of mind even on a day it’s not needed because it can protect you from paying out-of-pocket fees if your car needs repairs.
However, it’s best to keep in mind that not all warranties are set up the same.
What does it cover?
Car manufacturers, dealerships and warranty companies offer different warranties for your vehicle’s powertrain. The powertrain includes things like your engine and transmission and a more basic parts list.
You must read through your warranty. See what items are included in the car warranties you are considering. Things like your battery, clutch or brake pads are often not included.
A car warranty covers defects or damage during everyday use and can’t be considered normal wear and tear. It pays to replace defective parts with new or reconditioned parts at the company’s discretion behind the warranty.
Usually, it also covers labour.
How long does it last?
Whether you are buying new or used, arguably the most important part of your warranty is how long it lasts.
Often, your warranty will be quoted with a length of time and a mileage. For example, a “3-year/36,000 mile warranty” means that you are covered for three years from the date of purchase or 36,000 miles, whichever comes first.
If you are driving the average or more, your warranty will end a lot faster than three years.
Pros Of Car Warranties
Cost Saving
The truth is that some car warranty plans are less expensive than others. However, it’s essential to look around and find the best deal for your finances.
This means that a driver's warranty cost may be cheaper than buying a new vehicle. This is a significant consideration for many drivers when deciding if they can afford a new car.
Less Worry
It isn’t easy to find someone who does not need peace of mind while driving a vehicle. No one can afford to take any risks while traveling, and hence it is necessary to be sure that your car is safe in the hands of the owner or driver.
One of the best ways to have peace of mind while driving is to buy a car warranty from a reputable company.
Hence, no matter the car you have, it will still be protected from any unforeseen accident. It also gives you a sense of security, which is very important while on the road.
You will know that your car is in good hands and that no unseen accidents have occurred during the journey.
Comprehensive Coverage
Comprehensive coverage goes well beyond liability insurance, and it may also include the damage done to your vehicle and damage done to another car. Not only for accidents but from all sorts of natural disasters.
Comprehensive coverage is designed to protect you in case of accidents. If, for example, you are driving along and happen to hit a pothole in the road, the insurance company will cover all damages.
While this might seem like a good thing on its own, there are some circumstances where this kind of coverage might prove to be helpful.
“Cons” of car warranties
Not all repairs are covered
Routine wear and tear, including tires, may not be part of the deal, so check carefully to see what is and isn’t covered.
Make sure you see the warranty’s “exclusion list.” This will clearly show what is not covered under warranty. Reviewing this list will help you make an informed decision and prevent unpleasant future surprises.
A savings account may make more sense
If you don’t want to take that risk, you might consider saving up your own money to cover repairs in the future, and it only covers repairs listed in the contract.
The best advice always comes from an expert
If you live in Alberta and are looking for the best pre-owned cars, don’t hesitate to look at House of Cars Calgary. We are one of the best used cars dealers in Calgary!
Buying a car warranty is not just about the price of the coverage, but the saving on your future repairs without having to pay for them out of your pocket. If you do your homework and compare different plans, you can save a lot of money.
While still receiving the type of coverage that will help you through those rough times in the future, you should also check into your existing factory warranty to determine if you are entitled to receiving repairs costs without a rebate.
Even if you are still indecisive about whether to contract a car warranty or not, make sure to get in contact with our experts so they can help you find the best option for you.
