Between paying for auto insurance and the vehicle itself, you understandably wonder if adding another payment to the bundle is worth the money. The benefits of car warranties are highly contested by many, as are the downsides, which can make the car-buying experience even more confusing. The big question is, how do you know if the warranty plan you’re considering is worth the price tag?
Here are three questions to ask that will help you determine if the extended warranty is worth your hard-earned money.
Is the Manufacturer of the Vehicle Offering the Warranty?
If you’re considering a warranty that is offered by a third-party or someone your dealership recommends, it’s probably best to skip the policy. Those warranties can be sketchy and unreliable. However, if the company that made your car is offering an appealing extended warranty policy, it might be worth the price. They’ll stand behind their warranty and make it more worthwhile.
Does It Cover Many Kinds of Maintenance and Repairs?
Every warranty covers a different number of repairs and maintenance, which is why it’s very important to read all of the fine print on the contract. A warranty is not worth paying for if it will barely cover any of the problems your vehicle will encounter. If the policy does seem to cover a high number of repairs and regular maintenance, then it might be worth the price tag.
Have You Shopped Around for the Best Price?
You are not bound to buying an extended auto warranty where you bought your vehicle. Take the time to shop around with various companies to determine which policy fits your budget and needs the best. If you can find one that’s affordable and that covers everything you need it to, then you’ll certainly feel like the price is worth the benefits.