After purchase, a new car comes with a somewhat confusing term: extended car warranty. This extra layer of protection prevents unexpected repair crashes, but understanding its complexities can seem challenging.
This guide will cover the full range of extended car warranties available, teaching you everything you need to know.
Learn about extended car warranties
What is an extended warranty?
An extended car warranty is a service that extends beyond the manufacturer’s warranty period.
New car warranties cover certain repairs and replacements for a certain period of time (3 years or 50,000 kilometers).
Once the warranty expires, an extended warranty will provide similar protection during the extended period:
- Main coverage: Engine and electrical components.
- Optional coverage:Roadside assistance, labor charges and reimbursements.
Key features of extended car warranty:
- Cost structure: These range from a one-time payment to monthly installments. Repairs are subject to a deductible.
- flexibility: You can customize coverage periods and coverage to fit your needs.
What does an extended car warranty cover?
Extended car warranties can cover a wide range of issues, but it’s important to understand what’s included. Typically, it includes:
- Engine and transmission repair
- Electrical system (alternator, starter motor, power windows, etc.)
- Labor costs for complex repairs
- Some plans offer additional benefits such as roadside assistance and rental coverage
What is not covered by an extended car warranty?
While extended warranties offer extensive coverage, certain items are often excluded, including:
- Routine maintenance (oil change, tire rotation)
- Wear parts (brake pads, clutch, suspension)
- Modifications and damage caused by accidents
Advantages of Extended Car Warranty
- Maintenance savings:Extension covers all repairs and major component replacements.
- Increase resale value: Vehicles with valid warranties command higher resale prices.
- convenient: Extended warranty includes benefits such as roadside assistance and reimbursement.
Disadvantages of Extended Car Warranty
- Higher upfront costs: Extended car warranties can increase vehicle costs.
- General exclusions: Parts involving general wear and tear are not covered by the extended warranty plan.
- Underutilization: If the vehicle does not experience major problems, the insurance will not be used.
Extended car warranty price in india
The cost of extended car warranty in India depends on several factors:
- Vehicle brand and interior: Luxury cars cost more than commercial vehicles.
- Coverage period: 2-year plan is cheaper than 5-year extension.
- Reseller or third party:Manufacturer warranties are more expensive but more comprehensive than third-party warranties.
average car warranty price in india
| Warranty period | Price (INR) | |
| hatchback | 2 years | Rs 10,000 – 20,000 |
| car | 3 years | Rs 25,000 – 35,000 |
| SUV | 5 years | Rs 40,000 – 50,000 |
| luxury car | 5 years | Rs 1,00,000 – Rs 2,00,000+ |
When to Buy an Extended Warranty
You can choose to extend your car warranty at multiple stages:
- At the time of purchase: This is the best time to get an extension because you can negotiate a better deal.
- before expiry: Some manufacturers allow the purchase of an extended warranty along with the ongoing standard warranty.
Difference Between New Car Warranty and Extended Warranty
| New car warranty | extended car warranty | |
| Coverage | Included with vehicle purchase. Start after you buy your car | Optional and customizable. This plan can be selected before the standard warranty plan expires |
| cost | Included in the price of the car. | Additional advance payment required. |
| period | 2 to 3 years or fixed mileage limit. | Can be extended for 2-5 years. |
| Coverage | Limited and may not cover all sections. | Wider coverage, customizable options. |
Extended Warranty vs. Insurance: Key Differences
| extended warranty | car insurance | |
| provider | Provided by manufacturer or third party entity | provided by insurance company |
| cost | One-time payment or installment payment | Pay premium every year |
| Mandatory or optional | Elective | mandatory |
| Covers faulty components | Yes | No |
| Scope of damages | Mechanical and electrical failures | Accidents, theft and natural disasters |
| Anti-theft insurance | No | Yes |
What to consider before purchasing an extended car warranty?
Deciding whether you need an extended warranty depends on a variety of factors:
- usage time: If you plan to keep your vehicle for more than 5 years, an extended car warranty can save you from costly repairs.
- resale program: An extended warranty will help achieve a higher resale value.
- vehicle reliability: New models are more reliable. However, as vehicles age, repair costs increase.
- driving conditions: If you drive over rough terrain or frequently travel long distances, extended coverage can be a lifeline.
Others also read: Behind the strong resale values of some car brands
final thoughts
An extended warranty can save you money on unexpected repairs, especially as your vehicle ages. It can save you thousands of dollars and make your investment worthwhile, even if it seems like an unnecessary expense.
Check your driving habits and budget to make your final decision. Remember, this is for protection and peace of mind while on the road.
FAQ
- When is the best time to purchase an extended warranty?
The best time to lock in a lower interest rate is when purchasing a vehicle.
- Should I purchase an extended warranty for my new car?
If you’re considering buying a new car, you can negotiate for an extended car warranty, which can lower the price. This would be a smart investment if you:
- Plan to keep the car for a long time.
- Widely used (especially diesel models with higher repair costs).
- Want carefree ownership and zero maintenance worries.
- How long is the extended warranty?
The average duration is 2 to 5 years or 20,000 to 100,000 kilometers.
- Does the extended warranty cover engine replacement?
Yes, the extended warranty covers major repairs, including engine overhauls.
- Are car batteries covered by an extended warranty?
Usually not, unless you choose specific coverage that includes batteries.
- What’s the one thing that an extended warranty doesn’t cover?
Items that often wear out, such as brake pads, clutches and tires, are not included.
- Do car insurance plans and extended car warranties offer similar benefits?
No, both offer different coverage benefits. An extended vehicle warranty is limited to the car, while an insurance policy provides broader coverage.
Also read: Coolant’s role in car engine health and how to maintain it
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