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We hear it all the time after buying anything: “would you be interested in purchasing an extended warranty?” The questions comes up whenever you’re buying a TV, a cell-phone, even video games, but you’re certainly going to hear it when buying a new car.
Is an extended warranty a good choice? It’s a very open ended question, so we’ll do our best to guide you through the ins and outs of an extended warranty.

What is an Extended Warranty?

An extended warranty is a service that you pay for that provides extra “peace-of-mind” when it comes to costly car repairs. Extended warranty programs provide coverage of things that aren’t covered in the standard manufacturer’s warranty. Some things covered in the extended warranty include exhaust, electrical systems, engine and components, AC, heating as well as regular wear-and-tear. Coverage of wear-and-tear components is one of the best reasons to get an extended warranty, since that can cover things like brake pads, oil changes, filters and clutches, all of which are items that get changed quite often during the lifetime of a vehicle.

Additionally, an extended warranty can also provide 24-hour technical assistance and roadside assistance.
That all sounds great, but have you ever really read through what’s covered in the standard insurance? Before ever considering an extended warranty, make sure you know what the difference is between a manufacturer’s extended warranty, and it’s standard one.
Let’s take a look at the extended warranties that car manufacturers provide. Some automakers have different levels of coverage. For example, Fordhas four different extended service plans that vary widely in what’s covered. The lowest of the range apparently only covers 29 key components like the engine, transmission, and your vehicle’s drive axles.

The next best plan covers the steering, brakes, suspension, AC and heating. Plans increase in covered components until the highest end plan which seems to cover just about everything.
Considering buying an Extended Warranty for your car? Check out this article from to learn more about whether you should buy an extended warranty or not.
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