An extended auto warranty is a policy that is meant to protect a car owner from expenses related to fixing things after the expiration of the original vehicle warranty. There are two main types of this car service contracts. The first one is provided by car manufacturers. These policies are extended from the original warranty for some additional period of time which allows customers to continue taking their car to dealers for repair when the original warranty ends.

The second type of one offered by insurance company or an independent service. The warranty allows services to be done in different locations which includes the dealership. Due to the fact that the aftermarket car warranty is offered by third party, some companies will ask customers to pay the repair shop directly for their services. These are some benefits of an extended warranty.

Safeguard against unexpected car repairs

This warranty makes sure that the expense involved in repair is fully covered without any undue financial stress. Most of these warranties can also be transferred to future owners and this is in favor of the seller as it can increase its resale value. For buyers, it gives them some peace of mind when getting the car.

Ideal for people on fixed budget

For those who do not want to be surprised with costly repair bills, this type of warranty is ideal for them. If you are thinking of keeping your car for some period of time longer than the length of warranty from the original manufacturer, then this extended contract is right for you. Just like all insurance policies, you need to do some research before you buy this warranty.

Cars that have low charge of repair are not ideal for an extended warranty. The price of repair varies greatly between the models and makes and it might be less costly to pay for minor repair from your own pocket instead of buying a costly warranty. A general electrical part like an alternator is going to be priced two times or even thrice price on some cars. Have a look at the cost on familiar parts in order to know the amount of money that will be used for fixing your car before you think of investing in any warranty.

A warranty which is under the warranty of the manufacturer might not be ideal. Review your current warranty and if your car is warranted by the manufacturer for the next few years, then there is no reason for you to have double coverage. Take into consideration that you can purchase this warranty before your original one expires.

Just like any other insurance product, there are some policies which are less costly than others and there are those which are more detailed too. It is therefore ideal for one to read car warranty reviews. When you have read auto warranty reviews, you will then be in a better position to choose the best one that fits your budget and has clauses which allows for it to be transferred to any future owner.