August 16, 2013 - by
Buying an extended coverage for your vehicle that’s coming to the end of its original factory plan, or for a car/truck that you purchased used and has no protection, is a wise decision. Extended warranties, also known as vehicle service contracts, protect you from the high cost of automobile repair should something go wrong and, with autos (just like most things), problems typically start happening at about the time the original coverage period has expired.
While there are thousands of companies out there offering this type of coverage, finding a combination of the best policy coupled with the best price can be a challenge. One way to easily steer through this process is to utilize the expertise of a market expert that has done the necessary research and determined which companies offer the best protection and value for your dollar and who can give you a list of the best extended auto warranty companies out there. Your task then becomes much easier as you compare offerings from several providers, all of whom you know meet the qualifications the unbiased experts have deemed worthy of being at the top of your list.
How Much Should a Good Car Warranty Cost?
Many factors are used in determining the actual price of a vehicle service contract and no two vehicles are the same. Some companies offer special discounts for first time buyers, seniors, students and/or military personnel, so be sure to check on the availability of these.
Factors typically used in determining the cost of an extended auto warranty include the following:
- Make/Model – as a generalized example, and depending on model and year, a 36-month service contract on an Acura may run between $800-$1900 while coverage for a Mercedes may cost from $1000-$3200. Lower-priced vehicles and those with a high reliability history will typically cost less to insure. Vehicles that are more expensive will cost more to repair (parts and labor) so vehicle service contract will be higher-priced.
- Vehicle Condition – age, mileage and condition of a vehicle are all factored in when determining rates. An older car with low mileage will cost less to protect than a newer car with higher mileage. A car in poor condition and high miles presents a greater risk to an insurer (for potential repairs) and they will charge more to assume this additional exposure. The number of miles an automobile is usually driven in a year’s time will also be a rating factor, with high mileage drivers charged more for their protection.
- Deductible Amount – low deductibles are more expansive than high deductibles. This is the amount you must pay when your car is repaired and may be based on a per visit or a per repair charge. Per repair deductibles mean more out of your pocket so this coverage should cost less to buy initially.
- Coverage Plan – there are three basic types of protection plans: Bumper-to-bumper (exclusionary), stated component (inclusionary), and drive-train plan. Bumper-to-bumper covers all components on your vehicle except those specifically excluded and is the highest-priced plan. Stated component covers only items specifically listed in the policy. Drive-train plan typically covers only the engine, transmission, differential and drive axle. This is the least expensive option.
- Extra Options – some policies include extras such as roadside assistance and car rental reimbursement. These will add to the cost of a policy.
With the high prices of vehicle repairs, having a vehicle service contract is becoming much more necessary these days. While they may typically run from $800 to more than $3000, with one substantial repair during the policy period the policy could likely pay for itself. To receive a personalized and more precise quote for your vehicle it is best to contact the vehicle service contract provider directly. Many companies offer online quotes which most customers find very convenient.
If you need help choosing which company to go with, our team can help. Our company compared and rated the top companies in the industry, giving you quick access to information about these companies and letting you share the feedback with other consumers. We are constantly updating our list based on the feedback and reviews that you provide. Not only we rate coverage providers but also share useful information with drivers in the United States. On our website you can find the list of commonly used industry terms, top tips, examples of scam tactics, information about various factory plans, reliable automotive resources, etc.