A car warranty is an insurance policy that protects against expensive repairs or replacements in the event of a mechanical breakdown. Many newer cars come with a factory warranty, but you can also purchase an extended warranty from a third-party provider.
If you’re considering purchasing an extended car warranty, it’s essential to understand how they work and what they cover. This guide will review everything you need to know about car warranties; we will use CarShield reviews as our sample.
What is a car warranty?
A car warranty is an insurance policy that helps protect against expensive repairs or replacements in the event of a mechanical breakdown. Most new cars come with a factory warranty, but you can also purchase an extended warranty from a third-party provider.
Warranties typically cover significant components of your car, like the engine, transmission, and electrical system. Some also cover items like air conditioning, paint, and upholstery. Most warranties have a limited term and mileage, so it’s essential to read the fine print before purchasing.
Factory warranties are included in the price of your car and are typically valid for three years or 36,000 miles, whichever comes first. An extended warranty is an additional insurance policy that you can purchase to cover repairs after your factory warranty expires.
How much does an extended warranty cost?
The cost of an extended warranty depends on several factors, including the length of the coverage, the make and model of your car, and your driving habits. Generally speaking, extended warranties can range in price from a few hundred dollars to several thousand dollars.
When an extended warranty is part of a used car purchase, it’s often included in the financed price of the vehicle. Remember that most extended warranties have a deductible included, so though you’re still paying monthly, you’ll need to set aside a certain amount in case you need to file a claim.
What does an extended warranty cover?
An extended warranty is an insurance policy that covers repairs or replacements after your factory warranty expires. As with any insurance policy, it’s essential to read the fine print before purchasing to understand what’s included and excluded.
Generally speaking, extended warranties cover significant components of your car, like the engine, transmission, and electrical system. Some also cover items like air conditioning, paint, and upholstery. Most warranties have a limited term and mileage, so it’s essential to read the fine print before purchasing.
What is not covered by an extended warranty?
Most extended warranties exclude cosmetic damage, wear and tear, and routine maintenance coverage. They also typically exclude coverage for vehicles modified or used for commercial purposes.
It’s important to note that some extended warranties only cover repairs made at specific repair shops or dealerships. Read the fine print before purchasing to understand all the terms and conditions.
CarShield review
A Carshield review is an in-depth look at the company’s extended car warranty offerings. Carshield is a third-party provider of extended car warranties, so their coverage is not included in the price of your car.
Carshield offers several plans, all of which have terms and conditions. Read the fine print before purchasing to understand what’s included and excluded.
- Carshield’s highest level of coverage is their Platinum plan, which covers repairs or replacements for your car for up to $100,000. The deductible for this plan is $500, so you would need to pay that amount out-of-pocket in case of a claim.
- Carshield also has a Gold plan, which covers repairs or replacements up to $75,000. The deductible for this plan is $250.
- The Silver plan covers repairs or replacements up to $50,000. The deductible for this plan is $100.
- Finally, Carshield’s Bronze plan covers repairs or replacements up to $25,000. The deductible for this plan is $50.
No matter which Carshield plan you choose, you’ll be responsible for paying the monthly premium. Carshield offers a variety of payment options, including automatic withdrawals from your checking account or credit card.
Ways to Save Money on Your Car
For some people, an extended warranty may seem like an unneeded extra expense, while others find the peace of mind worth the cost. You can shift your budget around and save money on your car in other areas by following the following suggestions:
Routine Maintenance
Keep up your car’s routine maintenance, like oil changes and tire rotations. This will help extend the life of your vehicle and avoid more expensive repairs down the road.
Shop for the Best Insurance Rates
Shop around for auto insurance: Auto insurance rates vary widely, so it pays to shop around. Get quotes from several different companies and compare coverage levels and prices.
