Cars are expensive. Very expensive. This is a well-known fact that leaves many people searching for the best protection at the best price. For some who want to find the cheapest option available take heed. Not all cheap options are as cost beneficial as they appear. Some cheap extended warranties will cost you more in the long run.
How Much Do Extended Warranties Cost?
Each extended warranty will vary due to a variety of factors. These factors include the vehicle mileage, make, model, and year. Typically, car brands play a big part with more reliable vehicle brands receiving lower warranty costs compared to less reliable vehicles. Additionally, the source or provider of the extended warranty will affect the plan costs as well. For example, CarShield provides extended warranties with flexible payment options and month-to-month contracts.
Coverage May Not Be Necessary With A Reliable Car
Extended auto warranties tend to be lower for reliable cars. If you filed multiple quotes and find low rates across the board, you may want to reconsider if an extended warranty is necessary. Otherwise, you may find yourself paying for a cheap warranty and never have to use it due to the reliability of your car.
Monthly Payments May be Costly
Most extended warranty plans charge a monthly payment for a set number of months. However, many cheap options that provide significantly cheaper monthly payments run on an unlimited term or for an indefinite amount of time. So, with this warranty plan, while you may save money monthly you will lose more in the long run as you may well end up paying for a longer time if this plan runs for a few years.
So, for someone who finds a warranty plan at $80 a month compared to three other options over $100 a month on the surface it seems like an easy decision; 80 is cheaper. However, the other three options end in four years while the $80 option ends in six years. Viewing both the monthly rate and the total costs of coverage over a plan’s lifetime give you the most accurate picture of extended warranty price.
Cheap Plans Provide Cheap Service
You get what you pay for. For mid-range to pricier extended warranties, you will find excellent service along from trusted and reputable providers. Likewise with many cheap options you will get terrible service from providers who are not easy to work with and can be a hassle to communicate to. Remember that when you pay for your auto extended warranty you are not just paying for coverage on your vehicle. You are also paying for a customer experience.
As you plan your warranty you want everything to be great if your vehicle ever does need assistance. With a cheap extended warranty this experience can be more gruesome than great if you choose a cheap plan with second rate service.
Do I Need An Expensive Extended Warranty?
You don’t necessarily need to get an expensive extended warranty to get good coverage and a great deal that works for you. Extended warranty providers offer many different options in terms of plans and you have the ability to shop around providers and view quotes. You can avoid both an expensive warranty along with a poor cheap option, and settle on a plan that works best for you and your vehicle in the middle.