While home, life, health and car insurance are generally clear necessities for nearly everybody, extended warranties for cars are a much more complicated issue. These warranties can be very useful or completely useless, depending on the exact circumstances. Typically, you pay about $2,500 – $4,500 to a manufacturer, dealer or third party. In return, you get a 2 year/100,000 mile protection plan that will pay for certain repairs if you need them. The value of these warranty plans depends on what repairs you end up needing.
- Knowing who the warranty is offered from, such as manufacturer, dealer or another party helps one decide whether it would be cost effective.
- make sure to read the fine details, as some warranty coverage terms
- make sure to know what voids a warranty, such as having work done outside of an authorized dealership
“Never before has the adage, “The devil’s in the details,” been so applicable.”