Don’t you hate it when you need a big repair job and the money to fix your car just vanished?
Repair prices are skyrocketing every year without any limits. This is especially critical for the owners of older cars when technical faults seem to haunt you. Fortunately, there is a way to save yourself from financial ruin.
Extended car warranties will keep you safe when your car breaks down.
The thing is that most people do not even think about repairs. It happens in the back of their heads until, one day, all the problems start piling up.
Car repairs prices go beyond our expectations.
We call it “an elephant in the room” for a reason.
That moment when your beloved car really needs a major repair… That’s when you realize it was coming.
But you could prepare for it better.
Let me show you how.
In this article you will find out:
- What extended warranties are
- How much can modern repairs cost
- What usually covered in extended warranties
- How to know if extended warranty is right for you
What are extended warranties?
I promise you that it’s quite simple when you understand it.
You can call an extended warranty a type of insurance that covers repair costs of your vehicle after manufacturer’s warranty expires. In this way, you won’t have to pay money from your pocket.
But here’s the thing…
Extended warranty subscriptions are a kind of extended warranty that works differently from traditional coverage. Extended warranty subscriptions work like Netflix, instead of a large up-front payment you make monthly payments. This made protecting your car more affordable for many drivers.
Extended warranties kick in right when your car ages and is more prone to expensive problems.
How much can modern car repairs cost?
Mind you the following chart…
Car repair costs have jumped 43.6% between 2019 and 2025, and this is according to data from the United States Bureau of Labor Statistics. Yikes! A 40+ increase in just six years is something, am I right?
Is not even over…
Average repair costs across the country are now $838 per visit to the mechanic. And that’s just an average price that includes your weekly oil changes. Any major fix like an engine or a transmission can cost you between $1,200 and $10,000.
So why repairs cost so much?
- Modern cars are increasingly high-tech with computer systems
- Parts are getting more expensive each year
- Wages are being raised year by year
- Cars are staying on the road much longer (12.8 years old on average now).
Picture this.
Your transmission dies and you don’t have warranty to cover that cost. It might be hard to believe, but that’s $1,200 to $10,000 gone in a snap.
Repair costs will just only drain your budget to a point where you feel that.
What usually covered in extended warranties?
Extended warranties are not all the same, my friend.
The best ones cover expensive things that tend to break more often. The coverage usually includes:
- Powertrain coverage: Engine, transmission, and drivetrain
- Major electrical systems: Computer modules, sensors, and control units
- Cooling and heating systems: AC, radiators, and climate control
- Steering and suspension: Power steering, shocks, struts
Extended warranties usually don’t cover:
- Regular maintenance costs such as oil changes
- Wear items such as brake pads, wiper blades
- Damage from accidents, neglect or other driving related issues
- Cosmetics that doesn’t impact how the car works
Many extended warranties also add roadside assistance, rental car coverage, and trip interruption coverage as an option. You will never know when you will need that.
Is extended warranty right for you?
The final decision on whether to get extended warranty or not is still up to you.
But there are some things you can use to make a decision. Consider the age and mileage of your car. The older and the more kilometers the vehicle runs, the more it can get things that need to be repaired.
You should think of buying one as your current warranty of the manufacturer is about to expire.
Ask yourself the following questions:
- Can I afford $2,000 repair bill that I will need tomorrow?
- Is my car still under the manufacturer’s warranty?
- Do you plan to drive this car for the next few years?
- Is my car equipped with expensive technologies?
If you said YES to a majority of these questions, then probably extended warranty will be the right decision for you.
Extended warranties are not only about saving you money on repairs. It’s about peace of mind as well. The safety net that will keep you from getting a large bill out of the blue.
The protection you need
As I said before, car repairs cost can utterly ruin you if you don’t plan for them in advance.
Extended warranties are like a safety net for you. Instead of panicking over every noise the car will make, you will be more relaxed and calm.
Math does not lie. If you will pay between $50-$100 each month for the extended warranty, that will be between $600 and $1,200 each year. And this is not a lot of money compared to the average American spending almost $1,500 on maintenance and repairs. So if you have one big repair, the coverage will already cover the warranty.
Coverage levels
Don’t confuse, but different drivers need different levels of protection.
Basic powertrain coverage is the absolute minimum that will keep you 100% safe. It covers the most expensive parts of the car-engine, transmission, and drivetrain.
Comprehensive coverage level takes powertrain coverage to a next level and expands it. All major electrical systems such as computer modules, sensors, control units are included in the game.
Cooling, heating systems, suspension, steering, everything. So this option is a bit more expensive but definitely provides much more comprehensive safety from every fault that happens once the car ages.
Premium coverage often times included rental car reimbursement, roadside assistance, trip interruption protection, and so on.
This coverage level is highly recommended.
Extended warranty: when to buy?
The timing is also important when it comes to the purchase of the extended warranty.
The best time to get extended coverage is to just before your manufacturer’s warranty expires. This way you will have seamless protection with no coverage gaps. Most manufacturers provide 3-year/36,000-mile coverage, so it is better to consider this.
If you already passed that point, don’t be in a hurry.
Most providers will be willing to cover your older car, the cost of coverage would just be a bit higher.
A good strategy for you:
Do some research a couple of months before the expiration of your factory warranty. Browse around, read customer reviews, and study the coverage so that you can make the right decision with no pressure on time.
The Bottom Line
Extended warranties will protect you from unpredictable repair costs of modern cars.
Repair prices are rising every year, while car mechanics keep getting more complex. Therefore, getting protection for your vehicle is more and more sense each year.
The right extended warranty will provide you with:
- Protection against car repair’s bills shock
- Budget stability with affordable monthly payments
- Peace of mind while driving your car
- Repair costs coverage for expensive components and systems
The final decision is still up to you, but if you cannot easily afford a $2,000 repair bill and your car is getting old, an extended warranty probably makes sense.
Don’t wait until your car gets broken to regret you have not done anything before. Start looking at extended warranty now when your car still runs smoothly.
