A car is made up of tens of thousands of parts, all integral to its working. It is therefore definitely possible that even the best cars will have to go through repairs and replacements frequently. Wear and tear damage happens to all automobiles but getting it repaired can be very expensive. A car warranty is an assurance or rather a promise by the manufacturer, that for a specific period of time they will pay for any repairs or replace parts of the car if the need arises. This warranty usually applies for a specific period of time and mileage covered. Once the company warranty expires, you can purchase additional warranties to cover any repair that could happen after this type of warranty is called an extended car warranty. The extended warranty will cover any issues with air conditioning, electrical system, and powertrain, etc. It is also called a “service contract”. The extended warranty will not cover routine expenses of an oil change, brake pads, and any issues with tires. Most major repairs or defects crop up after 3-4 years of regular use.

The three main types of extended warranty are:

• Powertrain: This warranty covers the drivetrain of the car and includes parts of the engine and engine transmission and is usually available for long periods, i.e. 3 or 4 years. This type of warranty is best suited for high mileage cars or older cars.
• Bumper to bumper warranty: This car warranty offers comprehensive coverage and is an exclusionary warranty. Before purchasing this type of warranty, you have to look at what kinds of products or services are excluded from repairs or replacement. Reading the fine print here is very important before you make a payment or sign the document. Normally all mechanical systems will be covered, with the exclusion of certain items.
• Named component warranty: This is an inclusionary warranty and it only covers the parts included in the warranty. Any item or service not included in the list will not be covered. In this case, too, you should go through the fine print very carefully before purchasing the warranty.

How to choose a best-extended car warranty?
Points to consider before choosing an extended warranty plan are:

• How long are you planning to use the car for?
• How much are you planning to use the car in terms of mileage?
• How high is your car’s ranking in terms of reliability and quality?
• Does the warranty offer service only in a few or multiple dealer locations?
• Is it the best plan that I can get for the money I pay?

If you are planning to use a car for many years and you see a lot of usage ahead of you, it is definitely worth going in for an extended warranty to save yourself paying a huge amount of money in case of a problem. Your car’s reliability rankings which are available online can help you choose the kind of extended warranty plan that will best suit your car. Check the locations or dealers where you can get your vehicle serviced, as a limitation to this effect will be specified in the warranty contract. If you move to another location or your service station shuts down, your warranty might not be valid elsewhere. Get quotes from multiple dealers and compare it with others to get the best value for your money.

You might never use the warranty if your car is in good condition and you are not faced with big repairs. But if you don’t buy a warranty and are faced with a major problem, such as with the engine, you will end up paying a huge amount of money for repairs and service.