Are Extended Car Warranties Worth It?

5 min read

“So many roads, so many detours, so many choices, so many mistakes.” Sarah Jessica Parker.

Yep. Sounds about right. So. Many. Mistakes… especially on a car lot. Fun stuff.

There are so many choices to be made when buying a car. Whether it’s a grocery getter or a mid-life crisis car, the entire car buying process can be overwhelming. 

If you could just walk onto the lot, name your price and leave with keys in your hand and peace nestled happily in your mind, you might be good to go. But that’s not how it works, is it? 

Nooooo. You have to consider pricing, safety, longevity, risk, reliability and warranty coverage. Ughhh. The warranty. Just a little light reading.

But you need the darn warranty. It’s how you intend to protect your money from future inconveniences, when your car decides it time to spaz out at the worst possible time.


We hope the car buying experience, or even the first few years of ownership, will be pain-free and easy on the wallet. No snags. No hiccups. This is why we want that warranty that comes with the car. Perhaps an extended warranty.

We want a risky purchase to feel safe.

So, when the dealer hands you the paperwork and gives you an educated opinion on said warranty for the sake of extra protection, you consider it. 

You’re smart. You make smart decisions. So, of course you should get that extended warranty, right?

Well, let’s talk about that extended warranty. 

Every new car comes with a free limited manufacturer’s warranty. It’s supposed to be a shield that protects you from the uncertainty of a future that may drain your wallet (parts defects, car breakdowns, mechanical failures, etc.)

An extended car warranty is exactly what it sounds like — a prolonged warranty. It helps cover the cost of certain stated repairs after the manufacturer’s warranty expires. It comes at an extra cost and allows the driver to be covered for a longer period. 


But. Do you need an extended warranty on a new car?

Well, it’s true that it does offer coverage longer, as well as covering problems with some electrical and mechanical parts not covered by the limited manufacturer’s warranty. 

In reality, extended car warranties are expensive. On the average the total cost may exceed the amount it will return in paying for repairs.  This is because dealers mark these plans up so high.

Wow. That’s not a bargin.


Oh, but there’s more. Just like the limited manufacturer’s warranty, the extended warranty still doesn’t cover a lot of common repairs. Quite often, you’re paying too much for too little because the repair you need isn’t even included in the extended warranty.

Traditional car warranties work in such a way as to protect the manufacturers and dealerships. By failing to include what’s not covered in the warranty, the driver never knows if he’s covered when something goes wrong with his car. 


The covered car parts cited in the limited car warranties happen to be the most reliable parts. These uncovered parts make it so that car manufacturers and dealerships don’t have to deal with extra costs. 

Awesome.

Basically, the extended warranty that you’ve paid so much for may very well not be worth it in the end. So, why bother with it if you’re likely to end up paying more than the price of an average repair? 

Something about that just isn’t quite fair. 

Without a car warranty, you’re faced with many risks. As a car buyer, you want to be protected against those everyday risks. We think most car owners want to be protected against the hassle and effort of dealing with a broken car.

That’s why Eligible provides car repair insurance. Insurance that lets you know exactly what you can expect. Say goodbye to guesswork because unlike traditional car warranties, we clearly state the parts that won’t be covered. 

Can you imagine the peace of mind that comes with an utter lack of surprises? Picture car repair insurance that’s transparent, fair, and fully covers your repairs. That’s Eligible.

And it doesn’t stop there. 

We want to eliminate the hassle of dealing with a broken car. Eligible offers a host of additional benefits that take good care of you and your car when you need it.

Try to find benefits like these in an extended warranty! 


Don’t extend your headache. Extend your peace of mind with every day insurance for the everyday driver.

Got 30 seconds? Grab a FREE, no-hassle quote and see what Eligible can do for you.